Lindian triples rare earths mining area at huge | Australian Markets

Lindian Resources can now considerably increase its rare earths mining area by virtually three-fold at its Kangankunde project in Malawi after receiving departmental approval for its stage two modular growth plan.

In a additional constructive step ahead within the company’s plans to supercharge its stage-two growth of the world-class rare earths project, Malawi’s Mining and Minerals Regulatory Authority authorised Lindian’s utility to broaden its mining licence area to 2500 hectares (ha), up from 900ha.

The achievement comes sizzling on the heels of Lindian’s current deal for a large offtake settlement and potential cornerstone funding with vital mineral powerhouse and ASX-listed Iluka Resources, which has a present market worth of more than $2.5 billion.

Lindian management says the expanded mining footprint will bolster a focused stage one manufacturing output of 15,300 dry metric tonnes every year (tpa) of monazite focus up to a attainable 75,000tpa to 100,000tpa.

It cautions the possibly large bounce in output isn’t a forecast or manufacturing goal, however relies on the huge increase in mineable land it may sink its mining enamel into.

The globally important Kangankunde rare earths project has a JORC-compliant 261-million-tonne mineral useful resource and an initial life-of-mine of 45 years.

Expansion of the mining licence area gives Lindian with the regulatory backing to discover the choices to considerably increase its manufacturing capability by scaling up operations and developing vital project infrastructure.

The company plans to focus on its stage two modular growth in parallel with the project’s stage one processing plant development.

The improve of our stage-two growth area from an exploration licence to a mining licence permits Lindian to work in parallel on our bigger stage two growth whereas utilizing the learnings from the development of our stage one manufacturing facility to make sure that we optimise our processing flowsheets and recoveries. This may even permit Lindian to capitalise on our means to be the following rare earth producer to market and to seize a bigger market share.

The Iluka settlement, introduced final week, will see the vital mineral stalwart chip in a US$20 million (A$30.6 million) construction loan, accompanied by a 15-year offtake deal for 6000tpa, or a whole of 90,000t of Kangankunde’s premium monazite focus.

The super high-grade deposit will produce a premium rare-earth focus that rocks the scales at 55 per cent whole rare earth oxides (TREO), with near-20 per cent of whole oxides consisting of the dear magnet rare earths of neodymium and praseodymium, that are vital to be used in renewable power purposes and electric vehicle motors.

Kangankunde’s stage one anticipated manufacturing of 15,300t of monazite focus will pump out about 1600t of the 2 magnet metals over its whopping mine life of 45 years, which might grow exponentially due to the huge increase in mining area and big useful resource readily available.

The project comes with an anticipated pre-production capex of US$40 million and working prices of US$2.92 per kilogram of rare earth oxides, main management to consider the project hovers within the much-coveted lowest value quartile globally.

Lindian’s settlement with Iluka seems to be good timing for the duo, with Iluka chasing feed for its under-development Eneabba rare earths refinery in Western Australia’s Mid West area. The commission course of at Australia’s first government-backed rare earths facility is anticipated to kick off in 2027.

With speak of the Albanese-led Labor Government contemplating the introduction of a magnet rare earths price ground mechanism, presumably consistent with United States President Donald Trump’s much-heralded assist for the US rare earths industry, Iluka might be within the box seat to pump as a lot materials as attainable into the new refinery.

Iluka additionally has a proper of first refusal for extra long-term offtake materials from Kangankunde of up to 25,000tpa for 15 years, subject to Iluka offering a 50 per cent debt funding offer for the stage two capital value growth.

The Kangankunde project is gaining momentum with constructive news aplenty in current months and will obtain a additional increase to its Iluka tie-in, if the Federal Government involves the occasion with a rare earths pricing deal.

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