Lindian Resources Ltd (ASX:LIN, OTC:LINIF) earlier this week announced it had secured formal approval from the Government of Malawi to extend the mining license area for the Kangankunde Rare Earths Project from 900 hectares to 2,500 hectares. Executive chairman Robert Martin sat down with Proactive to discuss the milestone.
Highlights
- Lindian Resources secured formal approval from the Government of Malawi to extend its Kangankunde Rare Earths Project license from 900 to 2,500 hectares.
- Expansion enables simultaneous development of Stage Two alongside Stage One.
- Stage One learnings in processing and sizing to be applied to Stage Two.
- Current production target: 15,000 tonnes per annum of monazite concentrate.
- Stage Two could deliver between 30,000 and 100,000 tonnes per annum, with multiple potential offtake partners.
- Existing right of last refusal from Iluka for 25,000 tonnes of product.
- Parallel development positions Lindian to enter the market ahead of competitors and capture larger market share.
Stage two development can begin in parallel with stage one
The expansion of the mining licence allows Lindian to commence Stage Two development in parallel with Stage One. Martin told investors that operational knowledge from Stage One, including processing and sizing, would be applied to the new stage immediately.
Lindian highlighted that Stage One is targeting annual production of 15,000 tonnes of monazite concentrate. It added that Stage Two production could range from 30,000 to 100,000 tonnes per annum. The company said it has a right of last refusal agreement with Iluka for 25,000 tonnes of product and is in discussions with multiple other parties for potential offtake.
Opportunity for market share
The company told investors that progressing both stages at the same time could allow it to be the next rare earths producer to market. It said this would create an opportunity to secure market share ahead of competitors.
Martin said this was “a fantastic opportunity for us just to get off our bums and get things done.” He added that engineering work on Stage Two would start in the coming weeks.