Lindian Resources has advanced construction at its Kangankunde Rare Earths Project ahead of schedule while securing 100% ownership of the Lelouma Bauxite Project, underpinning its growth strategy in critical minerals.
- Kangankunde construction progresses ahead of schedule with cost efficiencies
- Preferred tenders shortlisted; contract awards expected in H2 2025
- Multiple project funding proposals including bank debt and bonds under advanced review
- Acquisition of remaining 25% interest secures full ownership of Lelouma Bauxite Project
- Leadership strengthened with key appointments to support project execution
Project Momentum and Construction Progress
Lindian Resources Limited (ASX – LIN) has reported a strong quarter ending June 2025, with its flagship Kangankunde Rare Earths Project in Malawi advancing construction ahead of schedule. The company’s European partner, Mota-Engil, accelerated haul road development, enabling redeployment of equipment and labour that delivered early time and cost efficiencies. Critical infrastructure such as the solar farm and security compound also progressed well, supporting the ramp-up of site activities.
These developments position Kangankunde as one of the rare earth industry's most advanced projects, boasting a high-grade deposit with a simple processing flowsheet. The project’s low levels of impurities and radionuclides further enhance its attractiveness, facilitating access to stringent international markets.
Contracting and Funding Advances
Key contracting milestones were achieved with preferred tenders shortlisted for design and construct, mining, and power infrastructure contracts. Lindian expects to award these contracts in the second half of 2025, aligning with its original development timeline. Meanwhile, project funding discussions gathered momentum, with multiple proposals received including a US$30 million senior secured loan from Ecobank Malawi, indicative bond terms from a European investment bank, and several offtake agreements.
Due diligence advanced with a site visit by Behre Dolbear Australia, the Independent Technical Expert engaged by lenders, underscoring institutional confidence in the project. Lindian’s funding strategy remains focused on securing limited-recourse financing to cover capital expenditure and ramp-up costs, aiming to commence Stage 1 construction late in 2024.
Strategic Asset Consolidation and Leadership Strengthening
In a significant portfolio move, Lindian acquired the remaining 25% interest in the Lelouma Bauxite Project in Guinea, securing 100% ownership of this tier-1 asset with a JORC-compliant resource of 900 million tonnes. The acquisition removes near-term dilution risks and additional financial obligations, consolidating Lindian’s position in a globally significant bauxite project.
To support project execution, Lindian appointed several key personnel, including a Senior Process Engineer, Construction Superintendent, Project Planner, QA/QC Superintendent, and a Corporate Development & Investor Relations Manager. This bolstered leadership team brings extensive experience in delivering major mining projects across Africa, enhancing operational capabilities on the ground.
Community Engagement and International Recognition
Lindian continued its commitment to community engagement in Malawi, hosting stakeholder meetings to discuss safety and development plans, which were well received. A delegation from the Malawi Ministry of Mining, International Monetary Fund, and United Nations Development Programme visited Kangankunde to assess its foreign currency generation potential and governance frameworks. The IMF acknowledged the project’s strong forex capacity, while governance improvements were identified to strengthen institutional effectiveness.
Downstream test work commenced with Australia’s ANSTO to support offtake and strategic partnership discussions. The Kangankunde monazite concentrate’s low radionuclide and acid-consuming mineral content was highlighted as a key technical advantage, promising a cost-efficient and environmentally sustainable processing pathway.
Bottom Line?
With construction accelerating and funding discussions advancing, Lindian is poised to transform its rare earth and bauxite assets into global critical mineral supply hubs.
Questions in the middle?
- When will Lindian finalize key contract awards and secure definitive project financing?
- How will downstream test work outcomes influence offtake agreements and strategic partnerships?
- What are the potential risks or delays in finalizing the Mining Development Agreement in Malawi?