Lindian Resources Ltd has passed an important milestone at the flagship Kangankunde Rare Earth Elements (REE) Project in Malawi with the first site construction contract awarded to leading European construction group Mota-Engil.
This contract is for site access road construction and is valued at approximately US$1.3 million with the work program scheduled over an 18-week period.
The scope includes the intersection of the access road with the main M1 highway, 5 kilometres of access road, civil works around the mining lease access area with associated security area.
Important milestone
Lindian CEO Alwyn Vorster said: “The award of this contract, although modest in value and duration, is an important milestone for Lindian and the Kangankunde Project.
“It will demonstrate to the people of Malawi and the investment market that Lindian is committed to advance the development of Kangankunde.
“The selection of Mota-Engil as our first development partner is an important step which may even lead to their broader involvement in additional work packages over time.”
Access to site
The site access road is a critical step forward for the Kangankunde REE Project in developing efficient site access, creating initial work opportunities and safer conditions for local residents.
Map of proposed access road works surrounding Kangankunde Rare Earths Project, Malawi.
Completion of this infrastructure will enable the seamless transportation of construction materials and equipment to the mine site, ensuring timely development of the process plant.
Local connectivity
Beyond the project, the road will improve local connectivity, creating new economic opportunities for surrounding communities.
It will facilitate access to jobs, support local businesses and enhance infrastructure, aligning with Lindian’s long-term commitment to delivering lasting benefits for Malawi.
The road will be accredited to Malawi Highway Design standards for an unsealed gravel road, including road safety and other road signage to be installed by the contractors.
Contractor insurances are based on local premiums and insured sums, which are normally much lower than Australia.
An additional amount has been allowed for civils at the entry gate, a security booth and entry/exit signage.
About Mota-Engil
The selection of Mota-Engil, a Portugal-listed multinational company with more than US$5 billion global turnover and US$1.5 billion turnover per year from infrastructure and mining projects in Africa, follows a comprehensive tender process for the scope of work during 2024.
Founded in 1946, today the Mota-Engil Group is a multinational company with operations focused on construction and infrastructure management in the segments of engineering and construction, environment and services, transport concessions and energy.
Mota-Engil has built a strong reputation for delivering high-quality projects across the globe and the partnership with Lindian strengthens the Kangankunde Project as one of the world’s most significant rare earth projects.
With more than 53,000 employees and a turnover of >€ 5 billion in 2023 (25% in Africa), Mota-Engil performs its activities aligned with the best practices and committed to a model of ethical, social and environmentally responsible management.
Strong government support
Importantly, for Lindian and the Kangankunde Project all government approvals from local authorities have been received.
Lindian is greatly encouraged by the ongoing strong support from government and this was reinforced recently when the company’s CEO and the management team met with members of the Malawi Government, including newly appointed Minister of Mines, Dr Kenneth Zikhale R. Ng'oma MP.
Meanwhile, the company is in the final stages of securing key commercial agreements, including the fixed-price contract for the process plant and the power supply contract.
Lindian remains committed to advancing funding solutions within Q1 2025, paving the way for the start of process plant construction shortly thereafter.