Highlights

• Kangankunde project targets 55% TREO monazite concentrate with projected 8,400 t/y REO and 1,640 t/y NdPr.
• Secured 15-year strategic partnership with Iluka Resources for ~6,000 t/y monazite concentrate.
• Advanced rare earth project with strong feasibility metrics
• Facing infrastructure and downstream separation challenges

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Lindian Resources’ Kangankunde project (opens in a new tab) in Malawi is advancing with Stage 1 Ore Reserves of 23.7 Mt at 2.9% TREO and a projected 45-year LoM. The plan targets a ~55% TREO monazite concentrate yielding ~15,300 t/y concentrate, containing ~8,400 t/y REO and ~1,640 t/y NdPr. Stage-1 pre-production capex ~US$40 m; the FS quotes pre-tax IRR 99% and <2-year payback.

What Holds True

The resource, grade, and monazite-dominant mineralogy are supported by the Feasibility Study. A flowsheet anchored in gravity + magnetic separation with a small flotation circuit underpins a first-quartile opex case. Financing progressed with an A$91.5 m equity raise (Aug 20, 2025) and FID approval, guiding to first concentrate in late 2026 (management timeline).

Where the Shine Dims

Marketing language (“premium,” “robust”) is doing heavy lifting. Malawi’s infrastructure and logistics remain non-trivial, and the standout 99% IRR is pre-tax and Stage-1-specific; post-tax returns disclosed are lower (80% in company materials) and sensitive to REE pricing. Schedules to Q4-2026 are targets, not outcomes per company announcement (opens in a new tab).

Offtake Reality Check

Contrary to earlier assumptions, Lindian has secured an initial offtake: a 15-year strategic partnership with Iluka Resources for ~6,000 t/y of monazite concentrate (or until 9,600 t contained NdPr delivered), plus a US$20 m loan facility and ROFR over additional volumes and Stage 2. That’s meaningful de-risking—though not full coverage of Stage-1 nameplate, and separation capacity still governs ultimate NdPr supply.

Bigger Supply-Chain Stakes

If Kangankunde delivers ~1,600 t/y NdPr (in concentrate) steadily, it can support diversification of magnet feedstock, but downstream separation remains the choke point where China dominates. Unless additional separation routes are contracted, Kangankunde’s near-term impact is supportive, not transformative.

Reading Between the Headlines

This is one of the most advanced undeveloped REE projects with funding, FID, FS metrics, and partial offtake in hand. The upside is real; so are execution, logistics, pricing, and downstream dependency risks. Kangankunde looks like a credible entrant—just not a one-project cure-all for NdPr supply as cited in Mining Weekly (opens in a new tab).

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