Lindian Resources has received approval to extend its mining licence area for the Kangankunde Rare Earths Project in Malawi from 900ha to 2,500ha, allowing for stage two expansion alongside stage one development. The project aims to increase production capacity from 15,300tpa to 75,000–100,000tpa with a high-grade deposit and strategic partnerships.

The approval from the Malawi Mining and Minerals Regulatory Authority provides regulatory certainty for Lindian’s expansion plans, contingent on completing a feasibility study and obtaining clearance from environmental authorities within six months. The company anticipates creating job opportunities, local procurement, and infrastructure enhancements in the Balaka district through the project’s development.

Lindian’s Kangankunde project is distinguished by its high-grade rare earths oxide deposit, featuring a 2.9% total rare earths oxide (TREO) grade over its lifespan. The company has secured interest from offtake parties like Iluka for long-term partnerships, including a binding strategic agreement covering stage one and stage two expansions. Iluka’s involvement includes potential project financing and securing additional offtake volumes through a right of first refusal mechanism.

The strategic partnership with Iluka for stage two expansion involves a right of first refusal for project financing and offtake volumes, offering up to 375,000t of additional concentrate over 15 years if Iluka covers at least 50% of expansion costs. With the approval for the expansion, a robust resource base, and Iluka’s support, Lindian is poised to develop a modular production plan in tandem with ongoing stage one plant construction.

Lindian Resources’ executive chairman, Robert Martin, highlights the significance of the Stage 2 expansion approval, enabling parallel progress on the larger expansion while optimizing processing flow sheets and recoveries. The company aims to capitalize on its position as a rare earth producer and enhance market share, exploring further strategic offtake and funding agreements to support its growth trajectory.

Read more at Yahoo Finance: Lindian secures approval for Kangankunde Rare Earths project expansion