Lindian Resources Ltd (ASX:LIN, OTC:LINIF) has moved closer to first production at its Kangankunde Rare Earths Project in Malawi, with mining readiness, construction, infrastructure and operational preparation all advancing as the company targets first production in Q4 2026.
The company said front-end commissioning remained scheduled for October 2026, with practical completion targeted for mid-November 2026.
The update follows Lindian’s agreement to terminate a monazite concentrate sale and purchase agreement with Gerald Metals SARL, giving the company greater control over sales pipelines, pricing, profitability, strategic jurisdictional strategies, product quality and supply volumes.
Mining readiness builds
A major operational milestone has been reached, with access established to the top of Kangankunde, and Stage 1 pit and haul road development is now complete.
Explosives approvals have been secured, explosives are onsite and the project’s explosives magazine has been formally signed off. The production drill rig is now drilling the first blast pattern ahead of the planned first blast.
Lindian has also built an ore stockpile of about 27,000 tons on the run-of-mine pad, providing early feed inventory to support commissioning and a controlled ramp-up toward first production.
Kangankunde mining and infrastructure fleet
Construction and infrastructure progress
Process plant civil and structural works are progressing ahead of schedule, with concrete pours completed across several areas including the shaking table, MGS, LMIS, WHIMS and product shed areas. Work is also preparing to advance on the SAG mill civil package.
The Tailings Storage Facility is about 50% complete, with stripping works finished and targeted completion set for September 2026.
Power infrastructure has also advanced, with the 27-kilometre power corridor completed and 269 poles installed. The corridor provides the pathway for the planned connection into the Balaka ESCOM substation.
Water infrastructure readiness has progressed with all 17 boreholes drilled, water permits secured and planning underway for the site water ring main.
Safety and operating systems
Lindian said the project had recorded more than 800,000 lost-time-injury-free work hours on site, with the total site workforce reaching 3,318 personnel.
The company is also advancing its operational readiness program, including the rollout of the Pronto ERP system and preparation across people, processes and systems as Kangankunde transitions from construction toward commissioning and production.
Executive director Zac Komur said Kangankunde was making “outstanding progress” across construction, mining readiness, procurement, infrastructure and operational preparation.
“The Project remains on schedule for first production in Q4 2026, with front-end commissioning targeted for October and Practical Completion targeted for mid-November,” Komur said.
“We are now moving rapidly toward mining operations.”
Sales agreement terminated
Separately, Lindian and Gerald Metals have agreed to terminate their 2023 sale and purchase agreement for monazite concentrate from Stage 1 of Kangankunde over a 60-month period.
The agreement will be terminated once Lindian issues 20 million fully paid ordinary shares to Gerald within 14 days of executing the termination deed. The shares will be subject to voluntary escrow for 90 days.
Lindian said the termination would allow the company to be in full control of its sales pipelines and would also allow for earlier supply of product to the SARECO hydromet facility in Kazakhstan.
The board thanked Gerald Metals for its early support of Kangankunde.
Stage 2 growth pathway
Lindian is also progressing the Stage 2 growth pathway at Kangankunde, with infill drilling completed and a DRA-led Stage 2 Feasibility Study on track for completion in December 2026.
A total of 7,764.1 metres has been drilled across the Stage 2 program, including 2,391 metres of existing reverse circulation holes extended with core drilling.
Assay samples are being sent to the laboratory, with results expected to support an updated Mineral Resource Estimate and feed into mine planning, reserve conversion and feasibility work.
Stage 2 is focused on an expanded 4.0-million-tonne-per-annum development pathway, with Lindian targeting total concentrate capacity of about 120,000 tonnes per annum, subject to the feasibility study and final investment decision.
Stage 2 in fill drill rig
What's ahead
Lindian’s immediate focus is on completing key infrastructure, progressing mining readiness, advancing commissioning preparations and maintaining the schedule for first production in Q4 2026.
Near-term milestones include the first blast, continued process plant construction, TSF completion targeted for September 2026, front-end commissioning in October 2026 and practical completion in mid-November 2026.
The company will also continue Stage 2 feasibility work ahead of the targeted December 2026 completion date.