Mining firm sees phaseone production in Q4

Lindian Resources Limited, a firm that operates Kangankunde Rare Earth Project in Balaka District, has assured investors that phase one production will start in the fourth quarter (Q4) of this year. The firm’s executive director Zac Komur highlighted this in an investor presentation which covered the miner’s key activities prior to the projected start of production. He outlined the offtake deals already secured, projected mine revenues and markets developments, including the global surging demand for rare earths which guarantees growth.

Said Komur: “Demand for permanent magnets is set to surge at an 8.2 percent to compound annual growth rate by 2040 driven by electric vehicles, robotics, advanced mobility and broader neodymium magnets adoption. “Magnet rare earth supply is forecast to lag growing at only 5.1 percent, leading to persistent post-2025 structural undersupply and depletion of historical inventories.” He said the industry faces sustained shortages without new supply as production struggles to keep pace with rising demand and the value of new high-grade, magnet-rich rare earth projects. Komur said with the project expected to produce its first concentrate between October and November this year and its second phase construction starting by end 2026 with its production ready by 2028, Kangankunde project will be one of the critical rare earth producers in the world.

The optimism also follows the strategic partnership it entered with Iluka Resources of Australia for $20 million (about K35 billion) stage one funding and a binding off-take agreement, which prompted the company to make a final investment decision. Last year, Lindian Resources secured approval for 91.5 million Australian dollar (about K102.7 billion) final investment, paving the way for the completion of the Kangankunde Rare Earth Mine construction. Meanwhile, the completed early site works at the mine include processing areas, temporary storage facilities for unprocessed ore, internal roads, security buildings and the solar farm and storage areas.

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When operational, Kangankunde Mine is projected to generate $114 million (about K200 billion) per year over a 40-year period, according to a feasibility study report the company released this year while output is estimated to increase from the 15 000 metric tonnes (MT) to 50 000MT annually. Chamber of Mines and Energy national coordinator Grain Malunga, in an interview yesterday, said the firm’s progress is in line with their projections. “The project has proven successful from the past decade or so and having reached advanced stages of funding solutions and development, it is pleasing that they will soon start generating foreign exchange for the country,” he said. Geoscience expert Ignatius Kamwanje described Kangankunde Rare Earth deposits as one of the highest quality globally, which positions the company at a strategic supplier of rare earths.

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