Rare earths developer Lindian Resources (ASX: LIN) has decided to take direct control of mining operations at its flagship Kangankunde project in Malawi, saying it can deliver better outcomes in-house than by outsourcing.
The company said on October 1 it had evaluated five contractor proposals but concluded that self-management offered superior efficiency and cost control. “After careful consideration, we believe executing mining operations internally gives us more control over costs, safety and scheduling,” managing director Alistair Stephens said in a statement.
Kangankunde is among the world’s largest undeveloped rare earths deposits, with Lindian estimating a mineral resource of 261mn tonnes at 2.19% rare earth oxides. The project is especially rich in magnet metals such as neodymium and praseodymium.
Lindian said it has already secured key permits and begun early site works at the central Malawian project. It is targeting a start to initial concentrate production in 2025, with ramp-up to full-scale operations in subsequent years.
Rare earths are critical for clean energy technologies and defence applications, and demand is expected to accelerate as global supply chains seek to reduce reliance on China. The Malawian Ministry of Mining has previously described Kangankunde as a “strategic national asset” and has pledged support for its development, viewing it as a catalyst for wider investment in the country’s critical minerals sector.
Lindian also signed a 15-year offtake agreement with Australia’s Iluka Resources (ASX: ILU) earlier this year, under which Iluka will provide financing facilities alongside long-term supply commitments.
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