Lindian lands A$16M local funding for Malawian rare earths build

Lindian Resources has locked in a shrewd local funding boost for its Kangankunde rare earths project in Malawi, with NBS Bank approving a US$11.635M (A$16.62M) composite facility to help smooth out its development run towards production.

The funding package includes US$4.635M (A$6.62M) in equipment finance over five years and US$7M (A$10M) in working capital over three years. 

Importantly, the asset financing component will reimburse 90 per cent of the cost of Lindian’s Komatsu owner-operator mining fleet, which the company has already paid for, while the working capital line will provide a liquidity buffer during ramp-up and early operations.

The company secured its earthmoving and mining equipment for Kangankunde late last year, with deliveries and mobilisation already in train.

The equipment, to be run on an owner-operator basis, includes Komatsu haulage and loading units.  Specifically, the current fleet includes a D155AX dozer, PC300 and PC600 excavators, WA380 and WA480 wheel loaders, alongside five HM400 articulated dump trucks, a GD675 grader and a Sandvik DP 1510i drill rig.

The latest financial arrangement lines up neatly with Lindian’s recently completed A$100M institutional placement, which has provided a debt-free pathway to first production and cash flow across Kangankunde’s stage one development. 

The placement proceeds were also used to secure its 51 per cent interest in the SARECO mixed rare earth carbonate facility through its joint venture with RA-Group, Lindian’s in-country joint venture partner in Stepnogorsk, Kazakhstan.

The company says the new NBS lines of credit are not core project finance. Rather, they constitute only ancillary support for equipment and working capital, as the main construction progresses towards mechanical completion in the second half of 2026.

Lindian Resources director Teck Lim said: “The NBS Bank facilities reflect the maturity of Lindian's financial strategy as Kangankunde progresses main construction. The asset finance provides a locally sourced, structured solution for the Komatsu mining fleet, while the working capital facility provides additional standby liquidity buffer”.

Under the board-approved term sheet, the new facilities are priced off a three-month secured overnight financing rate (SOFR) with margins of seven per cent for the asset finance and nine per cent for working capital. Lindian says the package comes with no financial covenants, with security held at the asset and project level. 

The company has also flagged the strategic benefit of funding through an in-country institution, describing NBS as one of Malawi’s most established banks and a Malawi Stock Exchange-listed institution.

The bank has a nationwide presence and a history of supporting Malawian commerce and development. Lindian says its relationship with NBS Bank reflects its long-term commitment to Malawi and supports a financing structure that channels more project spending through local procurement and domestic financial institutions.

With a $100M equity raise already in the kitty and a fresh, locally backed finance buffer to keep the fleet and cash flow humming, Lindian looks well placed to keep Kangankunde’s build and ramp-up timetable on track. 

If it hits its targeted start-up window, the project should strengthen Lindian’s pathway to first revenue while also channelling more jobs, procurement spend and banking activity through Malawi’s economy, adding another pillar to the country’s emerging rare earths sector.

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