Lindian Resources Ltd (ASX:LIN, OTC:LINIF) earlier this week announced a significant uplift in the economics of its Kangankunde Rare Earths Project in Malawi, following an optimisation of the processing flow sheet.
The company said the project’s pre-tax net present value (NPV) increased by A$536 million, rising from A$1.8 billion to A$2.3 billion. The internal rate of return also improved to 142%, up from the 99% reported in the July 2024 feasibility study.
CFO Teck Lim told investors the updated figures reflect both technical improvements and operational refinements. “These are fantastic project metrics, which really confirms and reconfirms the robustness of the Kangankunde project,” he said.
The optimisation also results in higher annual output, with production increasing from 15,300 to 20,000 tonnes per annum of monazite concentrate. Lindian highlighted continued strong demand from global refiners seeking feedstock containing approximately 55% total rare earth oxides (TREO).
Alongside these updates, the company has awarded Obsidian the engineering, procurement, and construction (EPC) contract for the Stage One processing plant. Lindian said Obsidian was selected via a global tender and brings relevant project experience, including recent commissioning of a plant in Burundi. Mobilisation is expected early in 2026.
Key flow sheet changes include the transition from two-stage to single-stage crushing, replacing screening with cyclones, and the removal of cell block flotation, with capex remaining steady at approximately US$40 million.
Lindian confirmed that a study into doubling output to 100,000 tonnes per annum is underway, led by engineering firm Pacifico. The company said these improvements materially de-risk the development path for both Stage One and future expansions.
The market responded positively to the news, with Lindian’s share price rising by around 7% at the time of the announcement.
Proactive: Welcome back to Proactive Newsroom. I'm now joined by Lindian Resources CFO Teck Lim. Teck, it's good to see you again.
Teck Lim: Thanks, good to see you again.
Proactive: Teck, there's been a major uplift to the economics of the Kangankunde project in Malawi — across the board, essentially. Walk us through the specific optimisation changes and how they've affected costs.
Teck Lim: Thanks. We announced an increase in our project economics based on an optimisation of the flow sheet. Compared to the feasibility study released in July 2024, our updated figures show improvements from top line through to EBITDA. The pre-tax NPV has increased from A$1.8 billion to A$2.3 billion, which is a A$536 million uplift. The internal rate of return has increased from 99% to 142%. These are fantastic project metrics that really confirm the robustness of the Kangankunde project.
Proactive: And all of this is in addition to an uplift in annual production as well?
Teck Lim: Correct. Annual production has increased from 15,300 to 20,000 tonnes of monazite concentrate. That’s a 4,700 tonne uplift. There’s strong demand for our premium, high-grade concentrate, which contains around 55% total rare earth oxides. A number of refiners have been reaching out to secure feedstock.
Proactive: You’ve also awarded Obsidian the design and construction contract for the Stage One processing plant. What execution risks do you see now that they’re on board?
Teck Lim: We ran a detailed global tender process. Obsidian submitted a conforming bid and demonstrated strong technical capability. They recently commissioned a rare earths plant in Burundi. We’re confident in their process guarantees. We’ve already completed early works and non-process infrastructure and expect Obsidian to mobilise in early 2026.
Proactive: With lower costs and higher returns, how does Stage One support future expansion?
Teck Lim: We’ve simplified the flow sheet — moving from two-stage to single-stage crushing, replaced screens with cyclones, and removed cell block flotation. Capex remains around US$40 million. These changes improve efficiency and set up for future expansion. We're studying an increase in output from 50,000 to 100,000 tonnes, and engineering firm Pacifico is leading that study. This is a great result across project economics and development execution.
Proactive: Investors have reacted positively. Your share price is up around 7%. Thanks for joining us today, Teck Lim from Lindian Resources.
Teck Lim: Thank you.