Lindian Resources has kicked off construction of its Tipume accommodation village at the company’s world-class Kangankunde rare earths project in Malawi, representing an important development milestone. Kangankunde is a world class rare earths project that boasts 1000m mineralised drill intersections going well over 2 per cent total rare earths oxides. Australian critical minerals processor Iluka has already put its hand up for the offtake.
Lindian Resources’ has kicked off construction of its Tipume accommodation village at the company’s world-class Kangankunde rare earths project in Malawi, representing an important development milestone along the pathway to construction. Kangankunde is a world class rare earths project that boasts 1000m mineralised drill intersections going well over 2 per cent total rare earths oxides and Australian critical minerals giant Iluka has already put its hand up for the offtake.
Site preparation is now complete, including bush clearing, initial roadworks and other earthworks for camp access and the next phase of access construction is already underway, including sub-base, base filling and final compacted all-weather road surfacing.
Other earthworks include final cut-and-fill for the camp terrace and completing the camp footprint alongside the necessary drainage and sediment controls.
Civil construction of the camp facilities is slated to begin on 15 December 2025, with practical completion targeted for the first quarter of 2026.
Designed to house up to 90 personnel in comfort, the turn-key camp is being delivered by Apex International.
Lindian adopted an owner-operator mining model for the Kangankunde project in September, following an assessment of five contractor proposals and a review of the company’s mining and operational requirements.
The self-management model is expected to reduce mining costs by about 30%, to around US$8.40 per tonne ($A$13/t), down from US$12/t (A$18.50/t).
Lindian Resources executive director Zac Komur said: “Tipume marks the point where Kangankunde moves from planning into delivery. Our people are working on 8/3 rosters from across Africa, spending more time on site than they do at home, and we have a responsibility to look after them properly. Tipume will give our teams a place to rest, recover and connect, and it will be a critical foundation for bringing Kangankunde into production on schedule.”
The owner-operated structure allows Lindian to manage mining and processing operations in-house, which it says will cut costs and provide greater flexibility. Under its control, Lindian can directly hire staff and will manage all mining and processing operations at Kangankunde in preference to employing external contractors for major roles.
The company is also assembling its own mining fleet and has established on-site personnel to oversee works, including construction and mining managers.
A key objective for Lindian is to build a dedicated workforce in Malawi, which it believes will lead to a stronger and more positive local socio-economic outcome for the project through job creation and skills-building in the local community.
Overall, the self-management moves are expected to improve budget oversight, enable faster adaptation to changing conditions and protect profit margins by removing multiple layers of management, reporting and communications.
The Tipume camp facilities will include air-conditioned and fully furnished rooms with TV, a gym, recreation areas, a mess hall and food-delivery zone, a reception building, vehicle parking and landscaped surrounds.
Following the final investment decision in August for the project’s Stage 1, paralleled by completion of a A$91.5 million capital raise allowing the Lindian to fully fund the project to first production and proceed with main construction, early works at Kangankunde have continued to advance rapidly.
The company recently locked away a strategic partnership with Australian-based Iluka Resources, an international company that mines and processes critical minerals, primarily zircon and titanium feedstocks like rutile.
Iluka is also developing Australia's first fully-integrated rare earths refinery at Eneabba in Western Australia and has secured offtake rights over Kangankunde.
Lindian’s Kangankunde project is regarded as one of the world’s largest and highest-grade undeveloped rare earth deposits outside China, with low-cost economics that remain robust even at recent lower but currently resurgent spot prices for neodymium and praseodymium.
The project comprises a total estimated indicated and inferred mineral resource of 261 million tonnes at 2.14% total rare earths oxides (TREO), with a JORC-compliant probable ore reserve of 23.7 million tonnes at 2.9% TREO.
Current mine life for the project is a whopping 45 years. Lindian is looking to produce a premium concentrate with high levels of neodymium and praseodymium, critical for renewable energy and electric vehicle motors.
With the onset of camp construction, Lindian remains on schedule and is rapidly driving its Malawian Kangankunde rare earths project towards production launch expected in late 2026, setting it on a trajectory to become a globally significant supplier of critical rare earths outside of China.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
