Lindian Resources Ltd (ASX:LIN, OTC:LINIF) has reaffirmed that its Kangankunde Rare Earths Project in Malawi is operating under a valid mining licence, with government inspections finding no evidence of unauthorised extraction or illegal mining.
The clarification follows recent media reports concerning the project, with matters subsequently addressed in the Malawi National Assembly on August 7, 2026. Lindian's wholly owned Malawian subsidiary, Rift Valley Resource Developments Ltd, remains the lawful holder of mining licence MML0290/22, which is valid and in good standing.
The news comes as Lindian takes full ownership of the SARECO mixed rare earths carbonate (MREC) processing facility in Kazakhstan, securing complete operational and marketing control as it develops an integrated rare earths supply chain centred on Kangankunde.
Government backs Kangankunde compliance
Malawi’s Minister of Mining told the National Assembly that government inspections had found no evidence of unauthorised extraction or illegal mining at Kangankunde.
The minister also confirmed that mineral samples exported from Malawi had received the required clearances and were sent for laboratory testing, technical assessment and approved scientific or beneficiation purposes.
Lindian said Kangankunde continued to operate within its statutory thresholds covering annual material movement, workforce and capital expenditure, while the project also had an approved Environmental and Social Impact Assessment from the Malawi Environment Protection Authority.
The government also addressed Malawi’s restrictions on raw mineral exports, noting that Kangankunde would beneficiate ore in-country into high-grade monazite concentrate rather than export unprocessed raw minerals.
Executive chairman Robert Martin said the company welcomed the government’s clarification and remained focused on bringing Kangankunde into production in Q4 2026.
“Kangankunde continues to be developed under a valid mining licence in good standing,” Martin said, adding that Lindian would continue its engagement with government and stakeholders as it moved towards a Stage 2 final investment decision.
Kangankunde development remains on track
Lindian said it was not aware of any issue arising from the recent media reports or parliamentary committee process that was expected to materially affect the Kangankunde project, the validity of its mining licence or its ability to continue operating under that licence.
The company also maintained its target of first production in Q4 2026 and said it would continue discussions with the Ministry regarding licensing requirements for future expansion as it progresses towards a Stage 2 final investment decision.
Kangankunde is Lindian’s cornerstone asset and is planned to produce a premium monazite concentrate grading 55% total rare earth oxides.
Construction of Stage 1 is well advanced, with Lindian saying it is fully funded following a long-term strategic partnership with Iluka Resources and institutional capital raisings totalling A$191.5 million.
Next steps
Lindian will continue advancing Stage 1 construction towards targeted first production in Q4 2026 while maintaining engagement with Malawian authorities over the licensing framework required for future Stage 2 expansion.