Scaling Risks Loom as Lindian Advances Kangankunde Expansion Study
Lindian Resources has appointed DRA Pacific to lead the Kangankunde Stage 2 Expansion Study, aiming to scale rare earths production amid strong market demand. This move follows the recent Final Investment Decision for Stage 1, targeting first production in 2026.
- DRA Pacific appointed for Kangankunde Phase 2 Expansion Study
- Focus on scaling production from 50,000 to 100,000 tonnes per annum
- Flowsheet refinement and modular development options under review
- Stage 2 study runs alongside Stage 1 construction to ensure efficiency
- Strong market demand driving rapid development plans
Strategic Appointment to Accelerate Expansion
Lindian Resources Limited has taken a decisive step forward in its rare earths ambitions by appointing DRA Pacific to conduct the Kangankunde Phase 2 Expansion Study. This appointment leverages DRA’s global expertise in rare earth processing and their extensive experience in African projects, including notable work with Lynas Rare Earths and other significant ventures in Malawi.
The Kangankunde Rare Earths Project, located in Malawi, is already progressing with Stage 1, following a Final Investment Decision and a substantial institutional placement of A$91.5 million. With first production targeted for 2026, Lindian is now setting its sights on scaling operations to meet growing global demand for critical minerals.
Scaling Production and Optimizing Processes
The Phase 2 Study will explore options to increase concentrate production from 50,000 to 100,000 tonnes per annum. This range reflects strong interest from potential offtake partners and the company’s ambition to secure a meaningful share of the rare earths market. Key technical considerations include refining the processing flowsheet, which currently incorporates flotation circuits undergoing metallurgical testing at ANSTO, and evaluating modular development approaches to allow staged, flexible expansion.
Importantly, the Stage 2 work will be conducted in parallel with ongoing Stage 1 construction. This integrated approach aims to capture efficiencies and avoid disruptions, ensuring that the project’s scale-up is both timely and cost-effective. Infrastructure requirements and potential constraints will also be carefully assessed to support the expanded production capacity.
Market Context and Strategic Implications
Demand for Lindian’s premium monazite concentrate, boasting a 55% total rare earth oxides grade with minimal deleterious elements, remains robust. The company’s low operating costs and strong community and government support in Malawi position Kangankunde as a globally competitive rare earths source. The partnership with Iluka Resources and the recent capital raise underpin Lindian’s financial readiness to advance both stages of development.
Executive Director Zac Komur emphasized the importance of DRA’s appointment, highlighting their rare earths credentials and African project delivery experience as critical to confidently scaling production. The study’s outcomes will inform the Board’s decisions on production rates, processing technology, infrastructure, and modularisation strategies, all aimed at maximizing value from this world-class resource.
Looking Ahead
As Lindian moves forward, the results of the Phase 2 Expansion Study will be closely watched by investors and industry observers. The company’s ability to execute on its growth plans amid evolving market dynamics will be pivotal in establishing Kangankunde as a cornerstone of the global rare earths supply chain.
Bottom Line?
Lindian’s partnership with DRA signals a confident push to scale Kangankunde rapidly, but execution risks and market shifts remain key watchpoints.
Questions in the middle?
- What will be the final production capacity and capital expenditure for Stage 2?
- How will metallurgical test results influence the chosen processing flowsheet?
- What infrastructure challenges could impact the timing and cost of expansion?