Lindian Resources Ltd (ASX:LIN, OTC:LINIF) has elected to adopt an owner-operator mining model at its flagship Kangankunde Rare Earths Project in Malawi, a move it says will deliver tighter operational control and significant cost savings while accelerating the start of mining.
Following a structured review of five contractor proposals, Lindian determined that self-performing mining activities would provide stronger oversight of scheduling, costs, quality, human resources and safety. Mining execution costs are now expected to fall about 30% to roughly US$8.40 per tonne, down from the US$12 per tonne assumed in the Stage 1 Feasibility Study (FS).
Capex held steady
Despite the shift to owner-operator, Lindian confirmed that total Stage 1 pre-production capital remains in line with the July 2024 FS. Considerable savings from civils and tailings works are being redirected to fund the mobile mining fleet without increasing overall capex.
Stage 1 is designed as a simple, low-risk open-pit operation with a life-of-mine strip ratio of just 0.2:1. The FS placed Kangankunde in the lowest cost quartile of the global rare earths sector, with forecast operating costs of US$2.92 per kilogram total rare earth oxides (TREO) (free on board) at 450,000 tonnes per annum of ore processed — guidance that remains unchanged until the Optimised FS is released.
Mining manager appointed
To support the new model, Lindian has appointed Samuel Boachie as Mining Manager. A qualified mining engineer with 23 years of open-pit experience across Africa, Boachie has led start-ups and ramp-ups for both majors and juniors, with particular expertise in building local teams and maintaining ore delivery through challenging wet-season conditions.
Boachie has already begun recruiting supervisors and operators who will in turn train personnel from the local community, embedding capability in-country.
Fleet tenders and timeline
Fleet tenders are in final negotiations, with awards expected shortly and key selection criteria focused on quality, timing, pricing, and in-country service support. Equipment is targeted to arrive on site before the end of Q4 2025, with contracts for explosives, fuel, consumables, tyres, laboratory services and original equipment manufacturer (OEM) maintenance also nearing completion.
With the owner-operator fleet in place, Lindian is now targeting first mining in February 2026 — four months earlier than under a contractor model — giving the company quicker access to high-grade stockpiles.
Execution focus
Executive director Zac Komur said the shift to owner-operator would streamline delivery and strengthen accountability across the project.
“Execution is the priority. We are building a safe, predictable operation with a single line of accountability for safety, schedule, cost and quality,” Komur said. “By preparing the plan and working the plan with our own fleet and team, we remove layers, protect margin and keep control where it matters.”
He added that the fleet would also deliver additional savings in pre-production civil and tailings works, with the company looking forward to “the first blast early next year and to run-of-mine stocks beginning to build ahead of ramp-up.”