Australian company Lindian Resources has finalized its investment decision to build the Kangankunde rare earths project in Malawi, with production scheduled to start by late 2026.
To fund construction, Lindian raised A$91.5 million (about US$59 million) through a share placement, issuing 435.7 million new shares at A$0.21 each. In addition, the company secured a US$20 million loan from Iluka Resources, which also signed an offtake agreement to purchase 6,000 tonnes of monazite concentrate annually for 15 years, totaling 90,000 tonnes. The contract includes a minimum price above production costs and could be extended for another 15 years.
Lindian expects to produce around 15,300 tonnes of concentrate annually by Q4 2026. The company has also expanded its mining license from 900 to 2,500 hectares, with part of the new funds allocated to feasibility studies for Phase 2, which aims to lift output to 50,000 tonnes per year.
As part of the partnership, Iluka holds the first right of refusal to purchase an additional 25,000 tonnes per year, provided it contributes half of the expansion financing.
However, questions remain regarding Lindian’s earlier agreement with Gerald Metals, which pledged US$50 million in financing in December 2024. Gerald has not been mentioned in Lindian’s recent updates since May 2025, raising uncertainty about its involvement.
If successful, the Kangankunde project would position Malawi as a new rare earths producer in Africa, strengthening global supply chains for critical minerals.
