Lindian Resources secures official government confirmation that its Kangankunde Rare Earths Project is exempt from Malawi’s new raw mineral export ban, ensuring uninterrupted progress toward production.
- Malawi’s Executive Order No. 2 of 2025 restricts raw mineral exports
- Kangankunde project exempt due to beneficiation into monazite concentrate
- Regulatory clarity supports Lindian’s production timeline for 2026
- Government will monitor compliance with value addition requirements
- Lindian fully funded and advancing construction after strategic partnerships
Regulatory Clarity Amid Export Restrictions
In a significant development for the rare earths sector, Lindian Resources Limited has received official confirmation from the Government of Malawi that its Kangankunde Rare Earths Project is not subject to the country’s recent ban on raw mineral exports. This assurance comes in response to Executive Order No. 2 of 2025, issued on 23 October, which mandates local value addition before minerals can be exported.
The Mines and Minerals Regulatory Authority clarified that because Lindian’s subsidiary, Rift Valley Resources Limited, will beneficiate the mined ore into a monazite concentrate prior to export, the project does not fall under the raw mineral export prohibition. This distinction is crucial, as it allows Lindian to continue mining and processing activities without interruption.
Strategic Importance of Kangankunde
The Kangankunde project is the cornerstone of Lindian’s portfolio and a promising asset in the global rare earths market. With a high-grade monazite concentrate expected at 55% total rare earth oxides and operating costs among the lowest worldwide, Kangankunde is positioned to become a significant supplier of critical minerals like neodymium and praseodymium.
Following a $91.5 million institutional placement and a strategic partnership with Iluka Resources, Lindian has made its final investment decision and commenced early construction works. The recent government confirmation removes a key regulatory uncertainty, bolstering confidence in the project’s path to first production next year.
Economic and Policy Context
Malawi’s Executive Order aims to maximize in-country value retention by requiring beneficiation of mineral products before export. This policy reflects a broader trend among resource-rich countries seeking to capture more economic benefits from their natural assets. Lindian’s approach aligns well with these objectives, as it adds value locally by processing ore into a concentrate rather than exporting raw materials.
The Mines and Minerals Regulatory Authority will maintain oversight to ensure compliance with the order, which is now embedded as part of the project’s license conditions. This ongoing scrutiny underscores the importance of regulatory adherence for Lindian as it scales operations.
Looking Ahead
With regulatory hurdles addressed, Lindian can focus on advancing Kangankunde’s development and capitalizing on growing global demand for rare earth elements critical to clean energy technologies and electronics. The company’s ability to navigate Malawi’s evolving policy landscape will be key to sustaining momentum and delivering shareholder value.
Bottom Line?
Lindian’s regulatory green light in Malawi clears the way for Kangankunde’s rare earths to reach global markets, but ongoing compliance will be critical.
Questions in the middle?
- How will Malawi’s enforcement of beneficiation requirements evolve over time?
- What are the potential impacts of global rare earth price fluctuations on Kangankunde’s economics?
- Could further regulatory changes in Malawi affect Lindian’s export strategy or timelines?