Lindian Slashes Kangankunde Mining Costs by 30%, Targets February 2026 Start
Lindian Resources has adopted an owner-operator mining model at its Kangankunde Rare Earths Project, aiming to reduce mining costs by around 30% and accelerate production start to early 2026.
- Owner-operator mining model adopted, reducing execution costs by ~30%
- Mining start accelerated to February 2026, four months earlier than contractor model
- Samuel Boachie appointed Mining Manager with 23 years African open-pit experience
- Pre-production capital remains unchanged despite fleet funding from cost savings
- Stage 1 project maintains lowest-quartile operating cost guidance of US$2.92/kg TREO
Strategic Shift to Owner-Operator Model
Lindian Resources Limited (ASX – LIN) has announced a significant operational pivot for its Kangankunde Rare Earths Project in Malawi, opting to self-perform mining activities rather than relying on contractors. This decision follows a thorough review of mining and operational needs, with the company targeting tighter control over scheduling, costs, quality, and safety. By adopting an owner-operator model, Lindian expects to reduce mining execution costs by approximately 30%, from about US$12 per tonne to US$8.40 per tonne of ore processed.
This move is designed to build durable in-country operating capability and streamline accountability, which the company believes will protect margins and improve execution predictability.
Cost Savings and Capital Efficiency
Importantly, Lindian has managed to fund the acquisition of its own mining fleet by redirecting savings from civils and tailings storage facility works, keeping total Stage 1 pre-production capital expenditure in line with the July 2024 feasibility study. This financial discipline means the company can invest in equipment without increasing upfront capital requirements, a notable achievement given the scale of the project.
Mining operating costs at Kangankunde remain among the lowest globally for rare earth projects, with an operating cost guidance of US$2.92 per kilogram of total rare earth oxides (TREO) on a free-on-board basis, based on a throughput of 450,000 tonnes per annum.
Experienced Leadership and Accelerated Timeline
To lead this transition, Lindian has appointed Samuel Boachie as Mining Manager. Boachie brings 23 years of open-pit mining experience across multiple African countries, including Ghana, Mali, and the Democratic Republic of Congo. His expertise in start-ups, ramp-ups, and building local teams is expected to be instrumental in delivering a safe, efficient, and cost-effective operation.
With the owner-operator model in place and mining fleet tenders nearing award, Lindian is targeting mining commencement in February 2026; four months earlier than previously planned under a contractor model. This acceleration could provide earlier access to high-grade ore stockpiles, potentially improving early cash flow and project momentum.
Execution and Future Outlook
The company is advancing critical supply and service contracts, including explosives, fuel, and maintenance support, with equipment expected onsite by the end of Q4 2025. Recruitment of supervisors and operators is underway, focusing on training local personnel to build a strong Malawian operating team.
Executive Director Zac Komur emphasized the focus on execution, highlighting the benefits of a single accountable team managing safety, schedule, cost, and quality. Lindian aims to leverage this model to develop Kangankunde into a world-class rare earth mining operation, maintaining its position in the lowest cost quartile globally.
Bottom Line?
Lindian’s owner-operator strategy at Kangankunde promises cost savings and faster production, but execution risks remain as the company builds its in-house mining capability.
Questions in the middle?
- How will Lindian manage operational risks inherent in transitioning to an owner-operator model?
- What impact will the accelerated mining start have on early project cash flow and market positioning?
- When will the Optimised Feasibility Study update project-level cost guidance and economics?
