Lindian Advances Kangankunde with $1.3M Road Contract to Mota-Engil
Lindian Resources has awarded a $1.3 million contract to Mota-Engil for the construction of a critical access road at its Kangankunde Rare Earths Project in Malawi, marking a key milestone in project development and local infrastructure enhancement.
- Site access road contract awarded to Mota-Engil for $1.3 million
- Road construction includes 5km access road and intersection with Malawi’s M1 highway
- Project has secured all necessary government approvals
- Infrastructure to facilitate timely process plant development pending funding
- Road expected to boost local connectivity and economic opportunities
Strategic Infrastructure Development
Lindian Resources Limited (ASX: LIN) has taken a significant step forward in the development of its flagship Kangankunde Rare Earths Project in Malawi by awarding a site access road contract valued at approximately US$1.3 million to the multinational construction group Mota-Engil. This contract, scheduled over an 18-week period, covers the construction of a 5-kilometre access road, including a new intersection with the main M1 highway, as well as civil works around the mining lease access area.
The completion of this infrastructure is pivotal for the project, enabling seamless transportation of construction materials and equipment. It lays the groundwork for the timely development of the process plant, contingent on securing project funding expected in the first quarter of 2025.
Partnership with a Global Infrastructure Leader
Mota-Engil, a Portugal-listed multinational with a strong presence in Africa and a turnover exceeding US$5 billion, was selected following a comprehensive tender process. The company’s expertise in infrastructure and mining projects aligns well with Lindian’s ambitions, and the partnership signals confidence in the Kangankunde Project’s potential as a globally significant rare earths asset.
Lindian’s CEO, Alwyn Vorster, emphasized the importance of this contract as a demonstration of the company’s commitment to advancing Kangankunde. He also hinted at the possibility of Mota-Engil’s involvement in further project work packages, which could deepen the collaboration.
Government Support and Community Impact
All necessary government approvals have been secured, reflecting strong local and ministerial support, including from Malawi’s newly appointed Minister of Mines, Dr. Kenneth Zikhale R. Ng'oma. The road infrastructure is not only critical for project logistics but also promises broader benefits for local communities by improving connectivity, enhancing safety, and creating economic opportunities through better access to jobs and local businesses.
This infrastructure development aligns with Lindian’s long-term commitment to delivering sustainable benefits to Malawi, reinforcing the social license to operate alongside commercial objectives.
Next Steps and Project Outlook
With the access road contract now awarded, Lindian is finalizing key commercial agreements, including fixed-price contracts for the process plant and power supply. The company aims to secure project financing in Q1 2025, which would enable the commencement of construction activities shortly thereafter.
The Kangankunde Rare Earths Project stands out for its high-grade rare earth oxide (REO) deposit with low impurities, promising one of the lowest capital and operating cost structures globally. The development of this infrastructure is a tangible step toward unlocking that potential and positioning Lindian as a significant player in the critical minerals sector.
Bottom Line?
As Lindian moves from planning to execution, the new access road contract signals tangible progress—but securing funding remains the critical next hurdle.
Questions in the middle?
- Will Mota-Engil secure additional contracts beyond the access road for Kangankunde?
- How soon can Lindian finalize project financing to commence process plant construction?
- What impact will improved infrastructure have on local community engagement and project timelines?
