Lindian Resources has awarded all major non-process infrastructure contracts for its Kangankunde Rare Earths Project in Malawi, marking a pivotal step toward first production in late 2026. Construction is underway with strong schedule confidence and capital discipline.
- All major non-process infrastructure contracts awarded
- Construction underway across multiple work packages
- Project remains within July 2024 Feasibility Study capital parameters
- Power supply development with ESCOM Malawi progressing
- Mining fleet mobilisation supports operational readiness
A Milestone in Rare Earths Development
Lindian Resources Limited (ASX, LIN) has reached a significant milestone in the development of its Kangankunde Rare Earths Project in Malawi by awarding all major non-process infrastructure (NPI) contracts. This comprehensive contract award covers essential facilities such as the mining workshop, administration building, fuel farm, power infrastructure, tailings storage, and site security. With construction already underway, the company is on track to meet its targeted first production date in late 2026.
Capital Discipline and Execution Confidence
Importantly, these contract awards have been secured within the capital expenditure parameters outlined in the July 2024 Feasibility Study, underscoring Lindian’s strong capital discipline. This financial prudence not only reduces execution risk but also bolsters confidence in the project’s schedule. Early works have been completed, and the mobilisation of the owner-operator mining fleet is progressing, setting the stage for a smooth transition into full-scale construction and operational readiness.
Power Infrastructure and Operational Support
The power supply contract, awarded in collaboration with Malawi’s national electricity utility ESCOM, is a critical component of the project’s infrastructure. The scope includes corridor clearing, pole installation, and transformer connections to deliver an initial 3 MW power supply. Supplementary solar and backup generator systems will ensure uninterrupted power for critical operations. Excavation and pole installation are scheduled to commence mid-December 2025, aligning with the broader project timeline.
Facilities to Support Mining and Administration
The mining workshop facility will provide comprehensive maintenance capabilities for the Komatsu mining fleet, which is currently being mobilised from South Africa. Meanwhile, the administration building will serve as the operational hub, housing management, technical teams, health and safety services, and logistics functions. Construction of these facilities is advancing steadily, with earthworks and foundation works well underway.
Securing the Site and Ensuring Safety
Additional infrastructure contracts include the explosives magazine, fuel farm, and a 9-kilometre perimeter fence. These elements are vital for safe and secure site operations as construction activity intensifies. The explosives magazine is already under construction, and fuel storage facilities are being equipped with safety systems to support both construction and mining phases.
Looking Ahead
With all NPI contracts awarded and construction progressing, Lindian is poised to soon award the process plant design-and-construct contract, a critical next step toward full project realisation. The company’s methodical approach and strong partnerships, including a strategic alliance with Iluka Resources, position Kangankunde as one of the most promising rare earths projects globally.
Bottom Line?
As Lindian advances Kangankunde’s infrastructure, eyes now turn to the process plant contract and the path to production.
Questions in the middle?
- When will Lindian announce the process plant design-and-construct contract award?
- How will power supply reliability be ensured beyond the initial 3 MW capacity?
- What contingencies are in place if construction milestones face delays?