About

The Kangankunde Rare Earths Project in Malawi is one of the world’s largest, rare earths deposits and is top tier in terms of high rare earth grade, and low levels of impurities and radioactive minerals. A feasibility study completed in June 2024, demonstrated that the Project has one of the lowest capital and operating cost structures of rare earths projects globally (read a summary of the feasibility study results here).

This low-cost structure is supported by a technically low risk and robust Stage 1 project involving mining operations, a mineral processing plant, and necessary support infrastructure.

Importantly, Stage 1 could serve as a logical springboard for future expansions.

With such impressive development and expansion potential, the Kangankunde Project is truly a world-class rare earths asset.

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Kangankunde Feasibility Study highlights

Location

The Kangankunde Project is located 90 kilometres north of the city of Blantyre in Malawi, the main economic and commercial centre in Malawi, and 13km south of Balaka.

Malawi is a country in southern and eastern Africa. Malawi is a peaceful country known ubiquitously as “the warm heart of Africa”, with a democratically elected government. Its government and legal system emanated from the English Westminster system (from colonial rule up to 1964). The Malawi Government has placed mining as the primary growth sector to diversify the Malawi economy and improve living conditions for its people.

 


Mineralisation

The Project exhibits significant geological and mineralogical potential with extensive rare earth mineralisation. The rare earth mineralisation is dominated by monazite.

 

Mineral Resource Estimate

The total indicated and inferred Mineral Resource is 261 Mt averaging 2.14% TREO above a 0.5% TREO cut-off grade. With 61 Mt of Indicated Resource grading 2.43% TREO (0.5% TREO cutoff grade) with a higher grade component of 25 million tonnes grading 3.26% TREO (2.5% TREO cutoff grade) (ASX Announcement 2 May 2024)

 
 

The Kangankunde Project has future exploration upside, with two deep drill holes confirming mineralisation continuity to 1,000 metres below the surface. Lindian has therefore set an exploration target for the Kangankunde Project (ASX Announcement 5 October 2023).

Ore Reserve

The Ore Reserves amount to 23.7 Mt at a grade of 2.9% Total Rare Earth Oxides (TREO). These reserves fall entirely within the Probable category, based on a cut-off grade of 1.0% TREO (ASX announcement 1 July 2024).

 
 

Stage 1 operations

Mining

The high-grade, near-surface mineralisation allows for a simple, low risk, open pit mining operation using conventional drill, blast, load and haul methodology. The Feasibility Study has delivered outstanding results for the mine development and operations including:

  • A very low strip ratio and low mining volume rate requirement.

  • A low-cost operation.

  • Low ore loss.

 

Processing

The unique mineralogy of the Kangankunde Project’s ore makes it favourable to relatively high levels of REO recovery, mainly through a physical process of gravity and magnetic separation.

As a result, the flowsheet only requires a small flotation circuit at the back end of the plant to reduce impurities (such as sulphides). This is considered a simple flowsheet compared to other rare earth projects that rely on a significant flotation circuit and, therefore, a high use of reagents to remove impurities. The clean process of gravity and magnetic separation also enables water to be recirculated within the plant without requiring expensive water treatment.

Given the ore has very low levels of radionuclides, the handling of concentrate and waste disposal is simple and inexpensive. This also significantly improves the product's marketability, as it can be shipped to most potential buyer countries without restrictions.



3D schematic of processing plan

 

Supporting infrastructure

The Project is located close to good supporting infrastructure which includes proximity to the main M1 highway, rail lines to ports and high voltage transmission lines. The following infrastructure will support Stage 1.

  • 3MW power to be provided by grid power connection (hydro power) with back up on-site diesel power generation.

  • Water to be sourced from borefields.

  • Tailings storage facility and return water dam.

  • Fuel storage and dispensing.

  • Various buildings and warehouse and maintenance facilities.

 
 

Tenure and licences

The current holder of key permits is Rift Valley Resource Developments Limited (RVR). Lindian currently owns 67% of RVR. It is the intent that Lindian will move to 100% ownership of RVR by making the final US$10M vendor payment at or before process plant commissioning commences.

Malawian registered Rift Valley Resource Developments Limited holds 100% of Exploration Licence EPL0514/18R and Mining Licence MML0290/22 issued under the Malawi Mines and Minerals Act 2018. The Exploration and Mining Licences have an Environmental and Social Impact Assessment Licence No.2:10:16 issued under the Malawi Environmental Management Act No. 19 of 2017.

 
 

Social and Environmental

The Kangankunde Project enjoys the support of and will significantly benefit the local economy and rural community by promoting sustainable growth, creating jobs, and investing in the community while respecting traditional Malawian customs.

Located in the Traditional Authority Chantunya area and sub-TA Nyala area in the Balaka District, the Kangankunde Project primarily impacts the GVH Makolela community.

A Community Engagement Plan (CEP) has been developed in collaboration with the local government, traditional leaders, communities, organisations, and women's groups in the Kangankunde Project area. The CEP establishes a committee comprised of community leaders, local community representatives, Government District Council officials, and senior leadership of Lindian.

The committee's purpose is to act as a forum for continued communication and engagement and defines the process for addressing issues.

Local community meeting

 

Environment

The Project will have a relatively low environmental impact. An Environmental and Social Impact Assessment (ESIA) identified only minor potential impacts on flora and fauna, land erosion, groundwater extraction, and waste management. Unlike many rare earth projects, the Kangankunde Project’s concentrate products and tailings will contain very low levels of radioactive materials and other impurities.

An Environmental Management Plan (EMP) has been developed to ensure mitigation measures are implemented to address all identified matters. An Environmental Monitoring Plan will be implemented from the commencement of operations to support ongoing monitoring of the Kangankunde Project’s impacts.

 

Employment

The Kangankunde Project will require more than 200 full time equivalent site roles during the construction phase, and more than 100 full time equivalent site roles during the operational phase.

CEO, Alwyn Vorster addressing Kangankunde workforce