Binding Offtake Term Agreement Signed for 30,000 Tonnes of Concentrate from Malawi's Kangankunde Rare Earth Project

en.Wedoany.com Reported - On November 10, Australia's Lindian Resources, through its wholly-owned Singapore subsidiary, signed a binding monazite concentrate offtake term agreement with an international rare earth refining group, covering supply arrangements of 10,000 tonnes per year for Phase 1 and 20,000 tonnes per year for Phase 2 of the Kangankunde rare earth project in Malawi. The agreement covers two distinct production phases, with a one-year supply term for Phase 1 and a five-year term for Phase 2. The first concentrate shipment is scheduled for export in January 2027.

Under the agreement, the Phase 1 purchase period begins in January 2027, with a purchase volume of 10,000 dry tonnes; the Phase 2 purchase volume is 20,000 dry tonnes per year over a five-year term. The buyer is an international refining group with rare earth chloride production and solvent extraction operations. The transaction will be executed by Lindian Global Rare Earths, Lindian Resources' Singapore subsidiary, with the agreement governed by Singapore law and related disputes handled by the Singapore International Arbitration Centre.

The product covered by this offtake is monazite concentrate produced from the Kangankunde project. The contract requires an average total rare earth oxide grade of 54%, with a minimum of no less than 52%. The pricing mechanism is linked to the Asian Metal index, with the pricing coefficient adjusted according to rare earth oxide prices, covering 10 rare earth elements: neodymium, praseodymium, dysprosium, terbium, cerium, lanthanum, samarium, europium, gadolinium and yttrium. Price calculation includes freight and insurance costs, and the buyer must arrange payment of the full invoice amount via commercial bank letter of credit prior to shipment.

Delivery arrangements adopt Cost, Insurance and Freight (CIF) trade terms, with the port of discharge designated by the buyer. The first container shipment is scheduled to depart from Nacala Port in Mozambique in January 2027, followed by deliveries at a rate of approximately 850 dry tonnes per month. The agreement's execution is subject to the signing of a full offtake contract and delivery purchase contract, actual production of concentrate from the Kangankunde project, and obtaining third-party permits and approvals. Phase 2 supply is additionally subject to regulatory, quota and operational conditions.

Following the signing of the new agreement, Kangankunde Phase 1 concentrate capacity has been fully allocated between external offtake customers and the company's own downstream processing facilities, with approximately 4,000 dry tonnes per year reserved for the SARECO rare earth processing facility in Kazakhstan. Existing supply arrangements for Phase 2 total 45,000 dry tonnes per year, including the newly added 20,000 dry tonnes per year and up to 25,000 dry tonnes per year covered by the right of first refusal previously acquired by Australia's Iluka Resources.

Construction of Kangankunde Phase 1 is nearing completion, with Lindian Resources planning first production in December 2026 and concurrently conducting a definitive feasibility study for the Phase 2 expansion. The offtake term agreement signed will bridge Phase 1 planned production with the first export arrangement in January 2027, while providing new commercial arrangements for expanding concentrate sales volumes in Phase 2.