Lindian Resources Ltd has made strong financing and development progress at its flagship Kangankunde Rare Earths Project in Malawi, with construction due to start in the near term.
Cost disciplines and financing pathways are progressing well, and the company remains on track to achieve first production in 2026.
Working through financing offers
The company has fielded several financing proposals, including a non-binding US$30 million term loan facility from Ecobank Malawi and an indicative senior secured bond offer from a leading European investment bank.
Lindian chief financial officer Teck Lim said: "We are pleased with the multiple proposals received from project financiers and offtakers, which reflects the outstanding quality of this project, one that is financially robust even at today’s lower rare earth prices.
“Notwithstanding the time required for greenfield project finance package to be arranged along with detailed due diligence, we are focused on securing the best possible outcome for Lindian and its shareholders.
“We are carefully evaluating multiple funding options to ensure we deliver a long-term, sustainable, and value-accretive solution.
“We will short-list the preferred funding pathway that is fit-for-purpose and safeguards the project’s long-term success, maximises returns for our shareholders and positions Lindian as a globally significant producer of rare earths."
Lindian is also reviewing offtake prepayment finance proposals from commodity traders and end users. These offers are being assessed alongside the previously announced US$50 million term sheet with Gerald Group.
Feasibility metrics continue to support robust project economics, with Kangankunde hosting a 45-year life of mine and producing a 55% total rare earth oxide (TREO) monazite concentrate with minimal deleterious elements.
Operating costs remain in the lowest quartile globally, with the project viable under current and forecast prices for neodymium and praseodymium.
Under budget, ahead of schedule
The company says pre-construction work is progressing ahead of schedule and under budget, including early infrastructure development on the site access road awarded to European contractor Mota Engil.
A design and construct (D&C) contract process is also well advanced, and Lindian has shortlisted three contractors. It expects to award the contract soon, following final site inspections.
What's more, the company is nearing finalisation of the Kangankunde Mining Development Agreement with the Malawian government, supported by ongoing high-level engagements with government officials.
Optimised feasibility study
Lindian is going ahead with an optimised feasibility study due for completion by mid-year.
The study aims to finalise capital and operating costs, optimise plant design and integrate recent test work findings to support procurement and construction readiness.
Logistics and tailings management solutions are also under review, including dry stack tailings and circular economy applications.
Strategic market engagement continues, with 40% of Stage 1 production already under contract and negotiations ongoing for the balance.
Lindian is also exploring downstream processing opportunities, including potential joint ventures in the US and Commonwealth of Independent States to produce Mixed Rare Earth Carbonate from its high-grade monazite feed.