Lindian Resources Ltd (ASX:LIN, OTC:LINIF) has sharpened its focus on execution at the Kangankunde Rare Earths Project in Malawi, using the December 2025 quarter to move from site establishment into active construction and operational build-out.
In its quarterly activities report released on Friday, the company said it awarded the design-and-construct (D&C) contract for the Stage 1 processing plant, began mobilising its owner-operator Komatsu mining fleet, and locked in key non-process infrastructure packages — while maintaining a strong safety record and lifting its project ownership to 100%.
Executive chairman Robert Martin said the quarter “marked a clear shift for Lindian from early works into sustained on-site execution at Kangankunde”, with construction commencing “across multiple fronts” and the first mining fleet deliveries arriving on site.
Employees at work on site at Kangankunde
Processing plant contract sets up detailed engineering and civils push
One of the quarter’s central milestones was the award of the Stage 1 processing plant D&C contract to Obsideo Engineering Pty Ltd, covering full engineering, procurement, construction and commissioning.
Lindian said the plant scope includes crushing, grinding, gravity and magnetic separation circuits, along with associated utilities and infrastructure, and that detailed engineering and construction planning has been progressing since the award.
Lindian Resources Executive Chairman Robert Martin met with the Obsideo project team during the period, including Cobus Robertson, CEO and Managing Director. The Obsideo team also comprised Lambert Taute, Process Engineering Manager; Waldo Retief, Project Services Manager; Hein Ackerman, Project Manager; and Louricus Taljaard, Engineering Manager
The company also flagged an optimisation that it says could lift ore throughput by about 25% relative to original feasibility study design parameters, while keeping capital costs “within 10%” of the Stage 1 feasibility study estimate released to market on July 1, 2024 — noting this was not a production forecast update.
Obsideo is scheduled to mobilise to site in February to begin the plant civil works program, with multiple work fronts planned to run in parallel. Lindian said long-lead items have been ordered, and site preparation across the stockpile area and plant footprint is about 95% complete.
Mining readiness builds as Komatsu fleet arrives and camp works ramp up
Lindian said it commenced mobilisation of its owner-operator Komatsu mining fleet, with initial equipment delivered from South Africa during the quarter and remaining deliveries scheduled through to March 2026.
Fleet assembly, commissioning and operator training are being progressed in parallel, as the company works towards “full mining readiness” in line with its strategy to retain greater control over costs, safety and operating performance.
The company also began construction of the Tipume workforce accommodation camp, which is designed to house up to 90 personnel. Lindian said site access works and earthworks were completed, foundation excavations finished, and building works under way across multiple facilities.
The camp is expected to be fully operational by the end of February 2026, supporting the expanding on-site execution team as construction activity ramps up.
Progress at the site camp facilities, showing completed foundation excavations, construction of VIP accommodation units, and advancement of Mess Hall, BQ accommodation and entrance earthworks supporting upcoming project mobilisation
Non-process infrastructure contracts awarded to reduce execution risk
During the quarter, Lindian said it awarded all major non-process infrastructure (NPI) contracts for Kangankunde, spanning the mining workshop, administration building, fuel farm, explosives magazine, power infrastructure, tailings storage facility and site security.
It said awarding the packages within the Stage 1 feasibility study capital parameters “materially strengthened project readiness” and reduced execution risk by aligning enabling infrastructure with the processing plant commissioning schedule.
Progress highlights cited by the company included:
- Power corridor works under way in coordination with ESCOM Malawi to support initial 3-megawatt supply, supplemented by solar and back-up generation
- Workshop and administration facilities moving through earthworks and foundations, with offsite fabrication and procurement continuing
- Explosives magazine receiving construction approval following inspection by Malawi’s Chief Inspector of Explosives
- Fuel farm works advancing on bulk storage tanks and associated safety infrastructure
100% ownership secured and US delegation visits site
Lindian also confirmed it completed the final US$10 million tranche payment under its share sale agreement to acquire 100% ownership of Rift Valley Resource Developments Ltd, the Malawian entity holding the Kangankunde project. The early payment increased Lindian’s project interest from 67% to 100%, delivering full strategic and operational control.
The company hosted a senior United States Government delegation at Kangankunde during the quarter, led by Nicholas Checker, Deputy Assistant Secretary of State for the Bureau of African Affairs. Lindian said discussions focused on the strategic importance of rare earths across energy transition supply chains, advanced manufacturing and national security, alongside briefings on construction progress and timelines to first production.
Kangankunde Construction Manager Daniel Britz conducting a site tour of the Kangankunde Rare Earths Project for Nicholas Checker, Deputy Assistant Secretary of State for the Bureau of African Affairs, along with other members of the Lindian team
Separately, Lindian’s executive leadership team attended international conferences in Kuala Lumpur and the United States and held meetings in Washington as it continues discussions with potential offtake partners.
Executive Chairman Robert Martin (left) with Lindian Senior Counsel Dr Kalekeni Kaphale (right) during meetings in Washington with United States government officials
ANSTO test work supports downstream processing pathway
On the technical front, Lindian reported positive downstream metallurgical test work results from the Australian Nuclear Science and Technology Organisation (ANSTO), confirming that Kangankunde’s monazite concentrate can be processed under “conventional” conditions to produce a high-grade, ultra-low radiation mixed rare earth carbonate (MREC).
High-grade mixed rare earth carbonate (MREC) produced from Kangankunde monazite concentrate during ANSTO testwork, dense, low-radionuclide product suitable for downstream separation
The company highlighted total rare earth extraction of 91–94% and neodymium and praseodymium (Nd+Pr) extraction of 93–97% in the leach stage, and said radionuclide levels were extremely low — with uranium and thorium below detection limits — which it said could simplify downstream flowsheets and reduce compliance requirements.
Lindian said it has since advanced the next phase of ANSTO work to optimise acid consumption, complete variability testing and assess a parallel caustic conversion route.
Exploration, leadership appointments and cash position
Exploration activity also moved forward with an initial drilling program at the North Knoll prospect, around 800 metres north of the Kangankunde Central Carbonatite Mineral Resource. Lindian said the program comprises nine diamond holes for about 650 metres, with first assays anticipated in Q2 2026, subject to sample export and lab turnaround times.
First drill hole underway at the high-grade North Knoll, Kangankunde Rare Earths Project, Malawi
On the corporate side, Lindian appointed Mojalefa Sechemane as processing manager to lead the processing function through construction, commissioning and ramp-up, and Dana O’Meara as HR, People & Culture manager in Perth. Post quarter end, CFO Teck Lim resigned for personal reasons.
Lindian finished the quarter with A$56.96 million in cash, with the company noting major outflows included the final tranche payment to secure 100% ownership and project and equipment costs associated with site works and fleet mobilisation.