Lindian Resources has locked in delivery of its Kangankunde rare earths project in Malawi by awarding the design and construction contract for the stage-one processing plant to Obsideo. The move has significantly de-risked execution, with recent plant optimisation lifting throughput by 25 per cent, boosting NPV by 45 per cent and keeping capex broadly in line, as the company targets first production in late 2026.
Lindian Resources has taken a decisive step toward production at its flagship Kangankunde rare earths project in Malawi after the company awarded the design and construction (D&C) contract for its stage one processing plant, with project economics also receiving a major uplift from recent optimisation work.
The contract has been given to South African-based engineering group Obsideo, following a competitive tender process. The deal now provides Lindian with a clear execution path as it moves towards first production. The D&C award marks a key de-risking milestone, locking in a delivery partner with proven experience in African and rare earths processing.
Obsideo will deliver full engineering, procurement, construction and commissioning of the stage one plant, including crushing, grinding, gravity and magnetic separation circuits. The contract also includes performance guarantees and commercial mechanisms aligned with cost, schedule and safety outcomes, reinforcing Lindian’s development pathway.
Obsideo chief executive officer and managing director Cobus Robertson said: “We are focused on delivery of the processing plant by the end of 2026 in line with Lindian’s pathway to first production of rare earths monazite concentrate.”
The latest signing follows completion of optimisation work on the stage one processing plant, which has driven a step-change in Kangankunde’s economics.
The optimised flowsheet will increase throughput by 25 per cent, from 60 tonnes per hour to 75 tonnes per hour, lifting annual monazite concentrate production to 20,000 tonnes per annum.
Design changes include simplified crushing and grinding, upgraded materials handling, early rejection of low-grade material and de-bottlenecking of concentrate handling. Sulphide flotation has been removed, reducing complexity without compromising concentrate quality.
The stronger production profile has directly translated into upgraded financial returns. The pre-tax net present value, using an 8 per cent discount rate, has surged 45 per cent to A$1.72 billion, while average annual EBITDA is forecast to increase 38 per cent to A$171.5 million.
The pre-tax internal rate of return has also jumped from 99 per cent to 142 per cent, highlighting Kangankunde’s status as a globally competitive rare earths development.
Kangankunde lies 90 kilometres north of Malawi’s commercial hub of Blantyre and is widely recognised for its scale, high-grade mineralisation and an absence of radioactive elements. Stage one is forecast to produce a premium 55 per cent total rare earth oxide monazite concentrate, positioning the project in the lowest quartile of the global cost curve.
Lindian Resources executive director Zac Komur said. “The optimisation work in the process infrastructure, giving Lindian the ability to substantially increase stage 1 concentrate production, is a notable achievement in the project.”
Operating costs have also been lowered as a result of the company’s decision to adopt an owner-operator mining model, which is expected to cut mining costs by about 30 per cent. Average annual revenue is now estimated at A$228.9 million, reflecting higher production volumes and the premium nature of the concentrate.
Despite the enhanced design, stage one pre-production capital costs remain within 10 per cent of the feasibility estimate and inside Lindian’s existing US$40 million (A$60M) funding envelope. Long-lead items have already been procured, early works are progressing and the project schedule remains intact, with first production targeted for the fourth quarter of 2026.
With a 261 million tonne resource at 2.19 per cent total rare earth oxides (TREO) and strategic backing from Iluka Resources, Lindian has now paired strong economics with execution certainty - positioning Kangankunde as one of the world’s most advanced undeveloped rare earths projects.
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