- 01Binding offtake covers 10,000tpa Stage 1 and 20,000tpa Stage 2.
- 02Stage 1 is fully allocated; Lindian is funded to first production.
- 03First shipment from Nacala is expected in January.
Lindian Resources (ASX: LIN) Singaporean subsidiary Lindian Global Rare Earths has signed a binding offtake term sheet with an undisclosed rare earths refining group for monazite concentrate from its Kangankunde rare earths project in southern Malawi.
The agreement incorporates Stage 1 volumes for 10,000 dry metric tonnes per annum and Stage 2 for 20,000dmtpa, following earlier offtake deals with Iluka Resources (ASX: ILU) and French industrial company Carester.
The first container of high-grade concentrate under the new agreement is expected to leave Nacala Port in January followed by monthly deliveries.
Lindian’s diversified global customer base validates strong demand for Kangankunde concentrate grading 55% total rare earth oxides with no deleterious elements and low levels of uranium and thorium.
Executive chair Robert Martin said Stage 1 concentrate capacity had now been fully allocated between the company’s offtake partners and the Sareco mixed rare earths carbonate hydrometallurgical processing facility in Kazakhstan, with more than 45,000dmt procured for the project’s Stage 2 expansion.
Cornerstone Asset
The cornerstone of Lindian’s asset portfolio, Kangankunde has attracted significant global interest due to its scale, grade, and robust economics across a range of rare earth price environments.
The project remains financially viable at current and forecast neodymium and praseodymium prices, as well as at lower price levels previously experienced in the market.
Lindian plans to produce a premium monazite concentrate with operating costs in the lowest cost quartile globally, establishing it as one of the largest and most promising rare earths deposits in the world.
The company is fully funded through to first production before year end, underpinned by the binding offtake deal and loan facility with Iluka, a series of capital raisings, and a final investment decision.
A Stage 2 definitive feasibility study will target a significant expansion in production capacity and further strengthen Kangankunde’s strategic positioning within global rare earth supply chains.
Export Readiness Advancing
Lindian confirmed this month that it continues to make significant progress towards export readiness, working closely with key Malawi institutions to establish the systems and processes required for efficient, long-term concentrate exports.
The Reserve Bank of Malawi has delivered technical training to finance, procurement, and inventory staff of Lindian subsidiary Rift Valley Resource Developments covering export regulations, registration and declarations, and export proceeds reconciliation.
Lindian supply manager Ben Ludik was working closely with the in-country team and logistics providers to advance operational readiness and ensure alignment of key concentrate exports covering rail transport, freight forwarding, and product sampling.
The company said these initiatives represented “important steps in establishing a robust integrated export framework” and positioning Kangankunde for efficient, reliable operations over the coming years.
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