Lindian Advances Kangankunde Construction and Acquires SARECO Facility

Kangankunde Moves Into Full Construction Mode

Lindian Resources (ASX:LIN) has transitioned its flagship Kangankunde Rare Earths Project in Malawi from preparatory works into full-scale construction. EPC contractor Obsideo Engineering mobilised to site in February 2026, kicking off civil works across multiple fronts. The company is targeting first ore feed and concentrate production by November 2026, with grid power energisation expected in July. This ramp-up reflects a significant step in Lindian’s ambition to become a globally relevant rare earths producer.

Alongside construction, Lindian has ordered all critical long-lead equipment, including the SAG Mill and Thickener Plant, locking in delivery schedules that underpin the project timeline. The company’s owner-operated Komatsu mining fleet is actively supporting earthworks and infrastructure development, including the Tailings Storage Facility and explosives magazine precinct, maintaining control over capital expenditure and schedule.

Safety milestones have been notable, with over 500,000 lost-time injury-free hours recorded and approximately 740 personnel now active onsite. The operational Tipume workforce accommodation camp, completed ahead of schedule, supports this growing workforce and is managed by the Allterrain Services Group, enhancing onsite living standards and operational efficiency. This development follows Lindian’s recent Tipume Camp operational milestone.

Transformative Acquisition of SARECO MREC Facility in Kazakhstan

The quarter’s headline development was Lindian’s binding agreement to acquire 100% of the SARECO Mixed Rare Earth Carbonate (MREC) hydrometallurgical facility in Stepnogorsk, Kazakhstan, through the Lindian-RA Joint Venture (51% Lindian, 49% RA Group). Previously owned by Sumitomo Corporation and Kazatomprom, the operational facility was secured for US$15 million, a fraction of the estimated A$500 million cost to build a comparable greenfield plant.

This acquisition transforms Lindian from a concentrate producer into an integrated rare earths company, enabling it to produce both monazite concentrate and higher-value MREC. The SARECO plant boasts established infrastructure, including cracking, leaching, precipitation, and reagent handling, along with permits, logistics, and an experienced workforce ready for transition. Lindian retains exclusive marketing rights for MREC, positioning it strategically in global supply chains.

The facility benefits from Kazakhstan’s stable investment environment and strategic location within Eurasian trade corridors, aligning with growing US-Kazakhstan critical minerals cooperation and the European Critical Raw Materials Act. This geopolitical positioning enhances Lindian’s access to European OEMs and magnet manufacturers. The company’s downstream ambitions are further supported by a confirmed domestic supply of low-cost sulphuric acid, insulating the operation from global market volatility, as detailed in Lindian’s recent sulphuric acid supply secured announcement.

Technical Validation and Expansion Drilling

A critical technical milestone was achieved with successful processing of Kangankunde monazite concentrate through the SARECO facility, producing MREC that meets specifications and aligns with prior ANSTO testwork. This real-world validation materially de-risks the company’s target to begin MREC production by Q4 2026.

Meanwhile, Stage 2 resource definition drilling commenced with approximately 3,400m of diamond core and 2,700m of reverse circulation drilling underway. The program aims to convert 20-40 million tonnes of Inferred Mineral Resource to Indicated status, supporting a planned expansion to 4 Mtpa throughput and an additional 100,000 tpa of monazite concentrate. Assay results and updated resource models are expected by mid-2026, with implications for Kangankunde’s production scale and longevity.

Logistics Advantage Confirmed by ANSTO

Adding to its competitive edge, Lindian announced that ANSTO independently confirmed Kangankunde monazite concentrate is exempt from IAEA SSR-6 Class 7 radioactive transport classification. This exemption eliminates the need for stringent radioactive shipping controls, broadening carrier options and simplifying export logistics. It also removes the requirement for costly radionuclide removal circuits downstream, reducing capital intensity and enhancing commercial flexibility.

Financial Position and Leadership Strengthening

Lindian closed the quarter with $42 million in cash, excluding proceeds from a post-quarter A$100 million institutional placement and a US$11.6 million equipment finance facility with Malawi’s NBS Bank. The company spent $17.5 million on construction activities during the quarter, reflecting steady progress but a reduction from the prior quarter’s $19.2 million spend.

Leadership appointments during the quarter include Teck Lim joining the board as Non-Executive Director, Cliff Webster as Technical Manager overseeing commissioning and expansion, and Hannah Murphy as Vice President of Corporate Development. These moves bolster Lindian’s capacity to execute its ambitious construction and downstream integration plans.

Community and Global Engagement

Lindian’s Project Early Learning initiative launched at Kangankunde Primary School, benefiting approximately 400 learners with new facilities and educational support, underscoring the company’s commitment to local community development.

Internationally, Lindian’s profile is rising rapidly through participation in key industry forums such as the Future Minerals Forum in Riyadh, Mining Indaba in Cape Town, and PDAC in Toronto. These engagements have broadened institutional interest and offtake discussions, positioning Lindian at the forefront of Western-aligned rare earth supply alternatives amid geopolitical supply chain realignments. The company’s progress was independently validated by Paydirt’s Deputy Editor Michael Washbourne during a site visit, with Kangankunde featured as the cover story in April 2026.

With construction momentum building and downstream capabilities secured, Lindian is navigating a critical phase that could redefine its role in the global rare earths market.