Mining
MALAWI’S KANGANKUNDE RARE EARTHS TO BE PROCESSED AT AUSTRALIAN REFINERY
August 27, 2025 / Marcel Chimwala
Lindian constructed Chanthunya Police Unit to serve local community
ASX-listed Iluka Resources has entered into an agreement with Lindian Resources for the long-term supply of rare earth concentrate from its Kangankunde project in Malawi’s Balaka District.
Iluka says in a Press Statement posted on Australian Stock Exchange that under the agreement, Lindian will supply Iluka with 6ktpa of rare earth concentrate for 15 years. This material would be complimentary feedstock for Iluka’s Eneabba rare earths refinery, and would represent approximately 10% of the refinery’s capacity.
Eneabba will be Australia’s first fully integrated rare earths refinery to produce separated light and heavy rare earth oxides.
The refinery is currently under construction; scheduled for commissioning in 2027; and being built through a strategic partnership between Iluka and the Australian Government.
To support Lindian’s development of Kangankunde, Iluka says in the statement that it has entered into a US$20-million loan facility agreement with a five-year term.
It says the loan will be made available subject to Iluka completing due diligence, Kangankunde being fully funded and after other construction funding had been spent.
Iluka’s General Manager for Investor Relations and Corporate Affairs Luke Woodgate states: “Our agreement with Lindian is a further step towards delivering on the significant industry building opportunities presented by Iluka’s development of the Eneabba rare earths refinery.”
“Against a backdrop of heightened emphasis on diversifying the supply of rare earths globally, this is an example of Iluka catalysing a new mine into production as its Australian refining customer.”
“This is part of our focus on securing complimentary Australian and international feedstocks for Eneabba, both from Iluka’s own portfolio and from third party suppliers like Lindian. Construction of the refinery is progressing well, with concrete works advancing and equipment now arriving at the site. In parallel, we are active in discussions with several potential feedstock suppliers.”
“The Kangankunde deposit has the potential to support a large, low cost and simple mining operation. I am delighted that our discussions have culminated in a binding agreement, including the potential to further expand feedstock in the future.”
“Iluka looks forward to Lindian bringing Kangankunde into production and the positive contribution our cooperation will make to a sustainable rare earth industry.”
In a separate press statement, Lindian Executive Chairman Robert Martin describes the binding strategic partnership with Iluka as a defining milestone for Lindian providing a credible pathway forward for the development of the world class Kangankunde Project, while delivering long-term contracted revenue.
Lindian’s flagship Kangankunde Project will produce a premium monazite concentrate over a long initial life of mine of 45 years.
Martin explains that the project’s high-grade deposit will produce a premium sealable monazite concentrate at 55% total Rare Earth Ore (TREO) grade, with no material deleterious elements and low levels of radionuclides (uranium and thorium).
He says: “We are delighted to have entered a long-term strategic partnership with Iluka, encompassing both cornerstone project funding and project offtake on binding terms. This is a pivotal milestone for Lindian and is a major step towards accelerating the development of Lindian’s globally significant Kangakunde rare earths project in Malawi.”
“These agreements will provide a multi-decade source of feed for Iluka’s Eneabba refinery facility in Western Australia, backed by the Australian Government. The floor price protection, no financial ratio covenants, and off-take linked terms are fit-for-purpose for the company, ensuring the long-term interests of shareholders are enhanced.”
“The funding and off-take agreements represent a major de-risking milestone for stage 1 of our Kangankunde Rare Earths Project, providing increased confidence for all our stakeholders by showing a clear pathway to production. The large stage 2 production expansion has also been significantly de-risked with Iluka having a Right of First Refusal (ROFR) for up to an extra 25,000 tonnes per annum of product if it makes an offer to fund 50% of capital cost.”
Rare earths are essential to modern economies with key applications across the automotive, robotics, energy and defence industry. There is currently a scramble for critical minerals such as rare earths globally with many countries encouraging local value addition to export high value minerals produced from the rare earth concentrate.
Share this:
Leave a Comment
Comments
Mining & Trade Review News
Agribusiness News
Subscribe to Newsletter
Rehabilitation:
The establishment of a stable and self-sustaining ecosystem, but not necessarily the one that existed before mining began. In many cases, complete restoration may be impossible, but successful remediation, reclamation, and rehabilitation can result in the timely establishment of a functional ecosystem.
Archives
Remediation:
The cleanup of the contaminated area to safe levels by removing or isolating contaminants. At mine sites, remediation often consists of isolating contaminated material in pre-existing tailings storage facilities, capping tailings and waste rock stockpiles with clean topsoil, and collecting and treating any contaminated mine water if necessary.
Stakeholders Logos
