Lindian Resources has entered into a binding offtake agreement involving 30,000 dry metric tonnes (dmt) of monazite concentrate from its Kangankunde Rare Earths Project in Malawi.
The arrangement was executed by the company’s wholly owned Singapore-based subsidiary, Lindian Global Rare Earths.
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According to the company, this offtake covers both initial and expanded production, with 10,000dmt in Stage 1 and a further 20,000dmt annually in Stage 2.
Shipping under the agreement is expected to commence in January 2027 from Nacala Port, with monthly deliveries of Kangankunde monazite concentrate scheduled thereafter.
The offtake term sheet specifies an average grade of 54% total rare earth oxide (TREO), with a minimum of 52%.
The pricing mechanism is tied to the Asian Metals Index (AMI), incorporating a payability factor based on rare earth oxides, and includes both freight and insurance in the final price.
Payment is to be made via commercial bank letter of credit (LC).
The new offtake adds to Lindian’s recently announced agreements with Iluka Resources in Australia and Carester in France, resulting in a diversified global customer base.
Lindian reports a total of 45,000t committed for Stage 2 expansion, and states it retains approximately 4,000 tonnes per annum (tpa) for internal processing at SARECO.
The current portfolio of customers gives the company exposure to markets in Australia and Europe and reduces reliance on any single buyer or pricing formula.
Lindian noted ongoing engagement with potential clients and partners in the US, Europe, and Asia.
The buyer under the new agreement is having established rare earths chloride and solvent extraction operations.
The Stage 2 supply is conditional on regulatory approvals, quota availability, and operational performance.
Governing law for the term sheet is Singapore law, with disputes to be resolved via the Singapore International Arbitration Centre (SIAC).
