Latest news with #Kangankunde
West Australian
28-05-2025
- Business
- West Australian
Lindian readies Kangankunde rare earths juggernaut with build, funding and offtake wheels turning
You don't see a lot of ASX juniors managing to simultaneously attract a global offtake partner, two funding suitors and a major contractor — all while already partway into site construction. But that's exactly where Lindian Resources finds itself as it barrels towards development of its massive Kangankunde rare earths project in project isn't just shaping up to be big — it's shaping up to be rare earth monazite concentrate clocks in at 55 per cent total rare earth oxides, with little to no deleterious elements, almost no uranium or thorium and low iron — giving it an almost freakish level of purity that opens doors most others can't unlock. That means access to high-paying Western buyers who simply can't — or won't — touch concentrates with high radioactivity or impurity purity, combined with scale, grade and simplicity, is putting Lindian firmly on the radar of end users, financiers and fund managers project boasts a whopping JORC-compliant resource of 261 million tonnes going 2.19 per cent TREO and an ore reserve of 23 million tonnes. That reserve grade comes in at an impressive 2.9 per cent TREO and importantly, almost 20 per cent of that is the more lucrative magnet rare earths used in electric motors, neodymium and praseodymium. All that is expected to bring about more than 15,000 tonnes a year of contained rare earths concentrate, of which 1,600 tonnes per annum will be sought-after neodymium and praseodymium. Two standout diamond drill holes — one going a crazy 920m at 2.6 per cent TREO and another stretching 910m at 2.9 per cent TREO — underscore the deposit's extraordinary vertical consistency and underline its almost non-existent stripping ratio of just company has already locked in a US$50 million offtake and funding term sheet with global commodities house Gerald Group, giving Gerald rights over all Stage 1 production and a partial look at Stage 2. And while that agreement remains in play, the board is also fielding multiple alternative offers — including a US$30 million senior secured loan from pan-African lender Ecobank and a Nordic-style bond package from a European investment bank. Several offtake prepayment proposals are also under says it will shortlist the preferred funding option in the coming weeks as it finalises its mining development agreement with the Malawian Government and heads towards a final investment decision. Stage 1 is scheduled for first production in 2026, with the aim of capturing early cashflow while the global NdPr magnet supply chain looks for diversification outside the numbers stack capex for the 45-year project – and that's just stage 1 - is estimated to be a miserly US$40 million, with opex of US$2.92/kg REO putting it in the lowest cost quartile globally. In fact, Lindian says it will still wash its face with about US$11m in EBITDA a year even at today's depressed rare earths prices, which are generally expected to head north as the market tightens. Notably, independent market research group Project Blue says it expects rare earths pricing to range between US$50kg and US$115kg. When using a scaled range of this pricing forecast, Lindian says the project will earn its pants off with a pre-tax NPV of US$794 million and an IRR of 99 per cent. The company has modeled an annual EBITDA in the first five years of US$57m a year and an average over the entire life of mine of US$83m a year – not bad for a project expected to cost around US$40m to build. And with drill intersections mineralised all the way down to about 1km it is perhaps no surprise that Lindian says the project has an intergenerational 45-year mine life. It's a textbook case of mining made simple too. The flowsheet is gravity and magnetic only — no flotation, no reagents, no waste dams. Ore is trucked just 2km from pit to ROM pad and processed into a saleable monazite concentrate — making for fast permitting, low environmental impact and minimal technical risk. One reason for the super low cost to produce is the almost non-existent stripping ratio at the project, which clocks in at just that simplicity has already started to show on the began in February with Portuguese infrastructure heavyweight Mota-Engil winning a US$1.3m contract to build the 5km site access road. That work is now ahead of schedule and under budget. Lindian has since completed clearing for the processing plant, product storage areas, ROM pad and security fencing. It's also refurbished the onsite admin centre and built a new community police than 70 per cent of site-based roles are already filled by local Malawians, with the company rolling out training programs to deepen workforce capacity ahead of production. New site leadership and technical appointments — including project director Daniel Britz and finance chief Teck Lim — have strengthened the execution most significantly, testwork is already underway with ANSTO — Australia's national nuclear and critical minerals laboratory — to produce a mixed rare earth carbonate (MREC) product from Kangankunde concentrate using both acid bake and caustic cracking flowsheets. The goal is to lock in product specifications, enable certificates of analysis, and unlock binding offtake MREC route would allow Lindian to push further downstream and claim more value, while the concentrate's ultra-low Actinium-227 levels would avoid the radioactive penalty pricing or outright rejection that dogs many Chinese and African monazite an edge few other REE juniors can Lindian has now completed an optimised feasibility study — incorporating updated plant design, equipment quotes, mine scheduling and tailings options — and is finalising negotiations with three shortlisted EPC contractors. A D&C contract award is expected as soon as funding is locked company has also begun converting exploration tenements surrounding the main mining lease into full mining licences — paving the way for a Stage 2 expansion, which could triple output using the same gravity several clay-hosted rare earths hopefuls on the ASX chase lower-grade ionic mineralisation, Lindian's Kangankunde stands alone for its combination of grade, thickness and simplicity — and in a hard rock setting, no executive chairman Robert Martin says the interest from financiers and offtakers is a sign the market sees the difference Kangankunde brings. 'We're seeing the calibre of groups approaching us go up dramatically — not just in terms of financing offers, but also potential downstream partners. The project's purity, simplicity and economics are hard to ignore.' There's still work to do before Lindian joins the rare earths producers' club — but few juniors in recent years have made it to this point with the funding, construction, product and political wheels all moving in unison - Kangankunde just might. Is your ASX-listed company doing something interesting? Contact:
West Australian
14-05-2025
- Business
- West Australian
Big players line up to fund Lindian rare earths mine
Rare earths developer Lindian Resources is juggling a slew of financing proposals from leading African and European commercial and investment banks to fund construction of its world-class Kangankunde hard rock rare earths project in Malawi. The company says it is riding a wave of financial momentum, with multiple funding proposals to bankroll Kangankunde's Stage 1 development. One standout non-binding proposal involves a US$30 million loan from Ecobank Malawi and another proposal involves a US$30M – US$40M secured debt/equity bond from a leading European investment bank. Another US$50M proposal from Gerald group dates back to last December and the company also has a number of offtake prepayment proposals from numerous commodity traders. The latest offer from Malawi's Ecobank includes a five-year pledge to act as mandated lead financier, with other commercial banks apparently circling for a syndicated deal. The support of Ecobank underscores Malawi's rising status as a growing mining jurisdiction for global investment and critical minerals supply. A leading European investment bank has tossed its hat in the ring with a Nordic-style bond, targeting a 60:40 debt-to-equity split for up to US$40M over five-years. Lindian says the bond is tailor made for upstream projects like Kangankunde, promising flexibility for construction costs. The company's existing US$50M non-binding term sheet with Gerald Group, to lock up the remaining 60 per cent of monazite product for a full offtake right to Stage 1, remains a solid contender too. Lindian's board will now sift through all of the proposals with a view to locking one in for its final investment decision. An optimised feasibility study for Kangankunde is also nearing completion and is set to wrap up in late June and will look to build on last year's blockbuster numbers. The project shows around 23.7-million-tonnes in reserve grading a weighty 2.9 per cent total rare earth oxides (TREO), placing it in rarified air on the global rare earths stage. Stage 1 is set to churn out 15,300t of premium 55 per cent TREO monazite concentrate annually for a massive 45 years, pegging a post-tax net present value at Kangankunde of some US$555 million, despite seriously depressed rare earths prices since 2023 that many believe will eventually move skywards. At a lean US$40 million pre-production capex and a miniscule US$2.92/kg TREO operating cost, the project is expected to pay for itself in under two years according to Lindian. Management says the preconstruction works are now in full swing on the ground in Malawi including the company's 5km access road that is expected to be delivered ahead of schedule and under budget. That road will allow construction crews to tackle run-of-mine (ROM) pad earthworks, storage facilities and security yards, shaving precious time and costs off the schedule. With 40 per cent of Stage 1 production already locked in under binding offtake terms with Gerald Group, production is slated for mid-2026, with the bidding process heating up for the remaining 60 per cent. Management also notes that joint venture discussions in the US and CIS countries are gaining traction, aligning with Presidential executive orders and Western efforts to diversify critical mineral supply chains. With a treasure trove of financing options, construction milestones and a low-cost foothold in the global rare earths market, Lindian is charging towards becoming a global rare earths supplier in 2026. Kangankunde's sky-high grade and dirt-cheap costs make it a first-class alternative to Chinese rare earths production as the West clamours for strategic rare earths alternative suppliers . Is your ASX-listed company doing something interesting? Contact:
Yahoo
28-04-2025
- Business
- Yahoo
Lindian Resources secures full ownership of Lelouma Bauxite project in Guinea
Lindian Resources has finalised a binding share purchase agreement (SPA) to acquire the remaining 25% interest in Bauxite Holding from its minority partners, securing full ownership of the Lelouma Bauxite project in Guinea. The Lelouma project, with more than $10m invested by previous owners, is located near significant infrastructure including a railway line and the Kamsar port. The project has a JORC-compliant mineral resource of 900 million tonnes (mt) at 45% aluminium oxide and 2.1% silicon dioxide. The Lelouma project targets the production of direct shipping ore (DSO), eliminating the need for processing. Full ownership of the project removes the risk of ownership dilution and financial commitments associated with the initial acquisition. Lindian will implement a new in-country management team to handle regulatory approvals, project development, and negotiations with potential port and infrastructure partners. Following a strategic review and two months of negotiations, Lindian and its minority partners have agreed on the SPA, which includes issuing 20 million consideration shares and a 1% royalty to the sellers. These shares will be in voluntary escrow for six months post-issue. The SPA's completion is expected within 14 days from signing, allowing Lindian to focus on the project without previous conditions. Lindian Resources executive chairman Robert Martin said: 'The company is pleased to have resecured 100% ownership of this world class asset, we can now invest in the project's continued development unencumbered without time constraints, multimillion dollar milestone caveats and minority partners. 'With rising demand for aluminium and its related products in electric vehicle production with a market that is estimated to reach ~$18.5bn by 2030, the company believes that the Lelouma project with approximately 900mt of high-grade material can be a big part of this. 'The company is also in discussions with a new in-country bauxite team of experts to work independently on developing the Lelouma project, which allows the company to remain completely focused on our commitment to bringing our Kangankunde rare earths project into production by 2026.' Earlier this month, Lindian Resources commenced early-stage site works at the Kangankunde rare earths project in Malawi. "Lindian Resources secures full ownership of Lelouma Bauxite project in Guinea" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
11-04-2025
- Business
- Yahoo
Lindian Resources begins site works at rare earths project in Malawi
Australia-based company Lindian Resources has commenced early-stage site works at the Kangankunde rare earths project in Malawi. Kangankunde is considered one of the world's 'most significant' undeveloped rare earth assets. The initiation of civil and infrastructure development follows the start of construction on a new 5km access road in February 2025. The works are part of a broader strategy to accelerate stage one construction and reduce project risks. The company has reported substantial progress with pre-construction earthworks, completion of plant processing areas, equipment laydown and management site offices. The access road is significantly ahead of schedule, with completion anticipated in the second quarter of 2025. This has allowed the company to repurpose equipment and skilled workers from the road crews, resulting in considerable time and cost savings. Lindian Resources has emphasised the importance of local workforce involvement, with more than 70% of site-based roles filled by local workers. The company's management team is prioritising environmental stewardship and sustainable development practices including adopting environmental management standards and partnering with local businesses to uplift the socio-economic conditions of surrounding communities. Lindian Resources project delivery chair Zac Komur said: 'The initiation of these projects showcases Lindian's dedication to progressing Kangankunde with both urgency and a fresh perspective. By assembling a seasoned construction team and collaborating with skilled contractors to optimise initial infrastructure development, we are establishing a strong groundwork for effective project execution. 'Through collaboration, best practice efficiencies and on-site management the current road works are ahead of schedule, allowing for the company to utilise equipment and skilled personnel, delivering pre-development time and significant cost savings. This milestone signifies our commitment to providing lasting value for shareholders whilst fast-tracking the development of Kangankunde.' In December 2024, the company signed a non-binding term sheet with Gerald Group for a $50m (A$79.88m) funding package to support the development of the Kangankunde rare earths project. "Lindian Resources begins site works at rare earths project in Malawi" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
11-04-2025
- Business
- Yahoo
Lindian Resources begins site works at rare earths project in Malawi
Australia-based company Lindian Resources has commenced early-stage site works at the Kangankunde rare earths project in Malawi. Kangankunde is considered one of the world's 'most significant' undeveloped rare earth assets. The initiation of civil and infrastructure development follows the start of construction on a new 5km access road in February 2025. The works are part of a broader strategy to accelerate stage one construction and reduce project risks. The company has reported substantial progress with pre-construction earthworks, completion of plant processing areas, equipment laydown and management site offices. The access road is significantly ahead of schedule, with completion anticipated in the second quarter of 2025. This has allowed the company to repurpose equipment and skilled workers from the road crews, resulting in considerable time and cost savings. Lindian Resources has emphasised the importance of local workforce involvement, with more than 70% of site-based roles filled by local workers. The company's management team is prioritising environmental stewardship and sustainable development practices including adopting environmental management standards and partnering with local businesses to uplift the socio-economic conditions of surrounding communities. Lindian Resources project delivery chair Zac Komur said: 'The initiation of these projects showcases Lindian's dedication to progressing Kangankunde with both urgency and a fresh perspective. By assembling a seasoned construction team and collaborating with skilled contractors to optimise initial infrastructure development, we are establishing a strong groundwork for effective project execution. 'Through collaboration, best practice efficiencies and on-site management the current road works are ahead of schedule, allowing for the company to utilise equipment and skilled personnel, delivering pre-development time and significant cost savings. This milestone signifies our commitment to providing lasting value for shareholders whilst fast-tracking the development of Kangankunde.' In December 2024, the company signed a non-binding term sheet with Gerald Group for a $50m (A$79.88m) funding package to support the development of the Kangankunde rare earths project. "Lindian Resources begins site works at rare earths project in Malawi" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
