Wedoany.com Report-Aug. 12, Lindian Resources, an Australian Securities Exchange (ASX)-listed company, has received formal approval from the Malawi Mining and Minerals Regulatory Authority (MMRA) to extend the mining licence area for its Kangankunde Rare Earths Project. The expansion increases the licence area from 900 hectares to 2,500 hectares, located in the Balaka District of Malawi. This development allows Lindian to proceed with the stage two expansion of the project, running concurrently with the existing stage one process plant development.

The enlarged licence area is expected to boost production capacity from the initial stage one target of 15,300tpa of monazite concentrate to an estimated 75,000–100,000tpa.

The approval from the Malawian Government provides regulatory certainty, which is expected to mitigate risks associated with the project's growth. The stage two expansion, however, is contingent on the completion of a feasibility study and clearance from the Malawi Environment Protection Authority within a six-month timeframe.

This licence extension will significantly increase production capacity. The initial stage one target of producing 15,300 tonnes per annum (tpa) of monazite concentrate will be boosted to an estimated 75,000–100,000 tpa. The expansion will also lead to increased job opportunities, local procurement, and infrastructure improvements in the Balaka district.

Lindian's Kangankunde project is known for its high-grade rare earths deposit, with a total rare earths oxide (TREO) grade of 2.9% over the mine’s life and 3.1% for the first five years. It will produce a monazite concentrate with a 55% TREO grade, characterized by low levels of deleterious elements and radionuclides.

The company has secured long-term partnerships with offtake parties, including Iluka, for both stage one and stage two expansions. Under a binding strategic partnership, Iluka has a right of first refusal (ROFR) for additional offtake volumes. If Iluka provides at least 50% of the stage two expansion costs in debt funding, the ROFR will apply to a maximum of 25,000 dry tonnes per annum of additional concentrate for 15 years, amounting to a total of 375,000 tonnes.

Robert Martin, Lindian Resources' executive chairman, highlighted the strategic significance of the licence upgrade, saying: “The upgrade of our Stage 2 expansion area from an exploration licence to a mining licence allows Lindian to work in parallel on our larger Stage 2 expansion whilst using the learnings from the development of our Stage 1 production facility to ensure that we optimise our processing flow sheets and recoveries.”

Lindian continues to explore additional strategic offtake and funding opportunities and plans to update the market on progress in due course. The expansion project positions Lindian to become one of the next key rare earth producers, enhancing its market share in the industry.