Lindian Resources, rare earths developer, and Iluka Resources, downstream refiner, have advanced the Kangankunde project in Malawi after Lindian approved a final investment decision and raised A$91.5 million (about $61.3 million) via an institutional placement priced at A$0.21 a share. Stage 1 targets around 15,300 t/y of monazite concentrate by late 2026; a feasibility study outlines a pre-tax NPV of A$1.18 billion (about $791 million) and a 99% IRR.
Funding terms and timeline
The two-tranche placement, struck at a 6.7% discount to Lindian’s A$0.225 last close on 15 August (about $0.151), was taken up by domestic and international institutions and came at a premium to recent VWAPs. Settlement of Tranche 1 is due on 25 August, with shareholder approval for Tranche 2 to be sought on 8 September. Executive chair Robert Martin said demand “was significantly in excess of funds sought,” adding: “To be able to declare the final investment decision sets Lindian on the pathway to being the world’s next rare earths producer… We now have a very clear, fully funded and unencumbered pathway to first production.”
Proceeds will complete Stage 1 funding, advance engineering and infrastructure for an expansion, and increase Lindian’s ownership of Kangankunde to 100%.
Project scope, costs and economics
Kangankunde’s Stage 1 is designed to produce approximately 15,300 t/y of monazite concentrate. Pre-production capital is estimated at $40 million (including a 12.5% contingency), with an average free-on-board operating cost of $2.92/kg total rare earth oxides (TREO). The feasibility study points to a payback of under two years, placing the project in the lowest-cost quartile of the rare earths industry on an operating-cost basis.
Lindian plans to accelerate procurement and contracting for long-lead items and services, in parallel with finalising major contracts to keep first production on track for late 2026.
Offtake to Eneabba and path to expansion
The raise follows Lindian’s strategic offtake and funding arrangements with Iluka Resources, which is developing Australia’s first fully integrated rare earths refinery at Eneabba, north of Perth. Under the agreement, Iluka will provide a A$20 million construction loan (about $13.4 million) and has secured 90,000 t of Kangankunde concentrate under a 15-year offtake.
Beyond Stage 1, Lindian holds approvals to lift output to as much as 50,000 t/y. Placement proceeds will partly fund Stage 2 engineering and site infrastructure to shorten the ramp-up to higher volumes.
Market impact and logistics
Monazite concentrate typically contains valuable magnet rare earths (including NdPr) alongside radioactive elements such as thorium, shaping transport and processing permitting requirements. The Eneabba route offers a defined downstream path to separated oxides, potentially easing execution and marketing risk once production starts. With funding in place and offtake visibility for a material portion of output, Lindian’s near-term focus is on de-risking construction and maintaining schedule.
