Lindian Resources Ltd (ASX:LIN, OTC:LINIF) earlier this week updated investors on the progress of its Kangankunde rare earths project, following a busy September quarter.
The company said it ended the quarter with $85.00 million in cash and had secured a 15+15-year offtake agreement with Iluka Resources covering both stages of the project. It said a final investment decision had been reached and that it is now fully funded to first cash flow.
Lindian said early works were completed on time and on budget. It noted that key infrastructure contracts had been awarded, including those for the camp, admin building, and mobile maintenance workshop.
The company has also expanded into the stage two mining lease and adopted an owner-operator mining model, which it said is expected to reduce operating expenditure by 30%.
Looking ahead, Lindian said the focus is on project delivery. It told investors that the major construction package will be awarded in the next quarter, with the mining fleet mobilising to site and preparations underway for the first blast. Civil, structural and mechanical works are also scheduled to begin.
It highlighted that performance guarantees are in place for major contracts to manage cost, schedule and quality risks. A stage two study outlining capital requirements is expected before the end of the year.
Lindian said it remains on track for first production in 2025 and is targeting ownership of 15% of demand growth in rare earths by 2030. The company added that Kangankunde has a projected 300-year mine life and contains a premium grade concentrate, supporting current downstream engagement.
Proactive:
Zac, it's lovely to have you on board here at Proactive. How are you?
Zac Komur (Lindian Resources):
Great, thanks. Good to be on board.
Proactive:
We're talking a new partnership with Iluka, project progress, and new appointments. As we wrap up the September quarter, what's been the top highlight in your opinion?
Komur:
Numerous standouts during the quarter. The Iluka partnership with a 15+15-year offtake agreement for both stage one and stage two was key. We achieved a final investment decision and are fully funded to first cash flow. We'll be in production next year.
We secured a great placement with institutions, completed early works at site, and awarded our process infrastructure contracts. That includes the camp, mobile maintenance workshop, and admin building – all well underway.
We expanded our footprint into stage two’s mining lease and transitioned to an owner-operator model for mining, cutting 30% of our opex. Our goal is simple: speed to market, own market share, and be the lowest-cost producer.
We are the next rare earth producer coming into production next year. For stage two, we’re targeting ownership of 15% of demand growth by 2030. We're building on that now with a larger footprint. Kangankunde is a multigenerational asset with a 300-year mine life. We're also exploring downstream discussions due to our premium grade concentrate.
Proactive:
Let’s zoom in on Kangankunde. Early site work has been completed on time and on budget. Stage two preps are advancing. What should investors look out for next in terms of timelines and funding for Kangankunde?
Komur:
Our focus now shifts to delivery. In the next quarter, the process plant's major construction package will be awarded. Long-lead items for the plant are locked in. The mining fleet will mobilise, and we're gearing up for our first blast.
You’ll see civil works, foundation and structural steel works, and mechanical installations. Operational readiness is key. We're building a rockstar team across mining, processing, and project delivery.
The focus is simple: hit the dates, hold quality, and keep cost tight. Performance guarantees are in place on major contracts to preserve schedule, cost, and quality.
The stage two growth study will be issued before year-end. That will outline the CapEx quantum. The aim is to get into production for stage one and scale up on rising demand.
So near-term milestones include contract awards, fleet arrivals, long-lead item deliveries, commissioning gates, funding drawdowns, and the stage two study release. Hitting those will keep us on track for first production next year.
Proactive:
Certainly quite a fair bit keeping you busy and plenty for investors to look forward to. This was Lindian Resources Executive Director Zac Komur. Thank you so much.
Komur:
Thank you.