Mining & Trade News

By Marcel Chimwala

CEO for Australian company Lindian Resources, Alwyn Vorster, said during a recent visit to Malawi that the Company is still aiming to have financing confirmed within the next few months, which should allow full scale mine construction at its Kangankunde Rare Earth Project in Balaka to commence later this year.  The Company has already completed numerous preliminary development activities at the project site since it became involved in late 2022. That includes extensive drilling and sampling programs as well as road and other infrastructure development. The Kangankunde Project is located 90km north of the city of Blantyre and 15km south of Balaka.

In June 2024, Lindian announced the appointment of Vorster, who brings 30 years of mining project development experience, having previously held CEO positions with many Australian Stock Exchange-listed companies. For the past year, he was also a non-executive director on the board of Lindian.

Vorster said the Kangankunde Project’s large and high-grade orebody makes it one of the best rare earth projects under development across the world. He said: “Lindian released a feasibility study on the Stage 1 development in early July. Results of the study showed that the Kangankunde Project is technically and financially robust and can deliver attractive future financial returns.”

“The feasibility study now paves the way for Lindian Resources to secure financing (which includes US$40 million pre-production capital cost) for the Stage 1 Kangankunde Project development.”

Vorster explained that when in operation, the Kangankunde Project will provide significant economic and social benefits to Malawi in the form of taxes and royalties, jobs and business opportunities, and social and infrastructure investment while additional flow on benefits will be generated from bringing mining investment and development to the region.

The Kangankunde Project is rich in neodymium (Nd) and praseodymium (Pr) rare earth elements. Nd and Pr are a critical component in the production of permanent magnets. Long-term demand outlook for rare earths will continue to be dominated by magnet applications. This growth will be driven by demand for renewable energy and electrified transport applications. As such, the magnet market will be the largest growing sector and it is forecast that it will account for almost 60% of the NdPr market by 2050.

He observed that the project has a bright future due to this potential growth in the rare earth market, the availability of favourable transportation infrastructure in the project area and the good relationship and support that the project is getting from the Malawi Government and local communities.

Since taking over as CEO, Vorster has accompanied the Chairman of Lindian, Mr Asimwe Kabunga, several times to Malawi; meeting with government, community members and local Lindian employees. Vorster commented, “Mr Kabunga has been instrumental in securing the project ownership for Lindian and advancing development, and he will remain our most senior and key contact with most senior government and community people”. I am also pleased to say that we have in the last few weeks strengthened our in-country capabilities by appointing Trevor Hiwa as General Manager Malawi (Country Manager), reporting to myself. He was, until now, a civil engineering consultant designing all civil works and mine support infrastructure at Kangankunde.  Trevor will be our most senior person in Malawi and be accountable for managing key functions of Kangankunde tenure and approvals, government and community relations, legal & compliance and the Malawi corporate financials.  Chrispine Ngwena moves from his current consultancy role to become our full time Manager Community and Government Relations, reporting to the GM Malawi. He will continue the outstanding work to date of managing sustainable relationships between Lindian operations and the Kangankunde Community, local and central Government.  We will also look to appoint financial and compliance related local employees in the near future.”

In terms of operations, the proposed Stage 1 development can have a mine life of 45 years based on current Ore Reserves.  The operation will involve an open pit mining operation and processing plant to produce ~15,300 tpa premium concentrate with 55% Rare Earth Oxide (REO) grade. The clean process of gravity and magnetic separation in the process plant means that water can be recirculated to the plant, thereby reducing the total water requirement. Up to 3MW power will be provided by grid power connection (hydroelectricity) with back up on-site diesel power generation. The Kangankunde 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.

Vorster said: “Unlike many rare earth projects, the Kangankunde Project’s concentrate products and tailings will contain very low levels of radioactive materials and other impurities. This makes the handling of the ore and waste easy and safe and enables the product to be shipped to most potential buyer countries without restrictions.”

The development schedule aims to commence main construction in fourth quarter of 2024 and commissioning of the processing plant late 2025 and first sales in first half 2026.

Vorster said 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. The Company aims to employ and train many of these roles from the local Malawi labour pool.

He also said the Kangankunde Project has 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.

Vorster said: “Lindian has been active in the local community, providing financial support for a remote policing unit and assistance to the local schools. It has worked with the local community and government on a resettlement process for community members affected by the Kangankunde Project’s development.”

“A Community Engagement Plan (CEP) has been developed in collaboration with the local government, traditional leaders, communities, organisations, and women's groups in the project area. The CEP establishes a committee comprised of community leaders, local community representatives, Government District Council officials, and senior leadership of Lindian. It will act as a forum for continued community engagement and issues management.”

“Infrastructure upgrades are also planned, including upgrading a 5km unsealed road from the Kangankunde Project site to the M1 Highway into an all-weather road to enhance safety and accessibility. Communication infrastructure implemented for the Kangankunde Project will also improve community access to reliable communications.”

Leave a Comment

Comments