Lindian Resources is an ASX listed Australian company developing a high grade, low impurity rare earths project in Malawi, focused on producing monazite concentrate for Western supply chains.
You have stepped into new shoes this year at Lindian. Tell us briefly about yourself, your new role, and your vision.
I have been in mining for about 30 years. At 39, I built and sold a large mining services business and stepped into retirement, only to quickly realise I wasn’t ready to slow down. I established a family office and then returned to the sector, investing in juniors in exploration and development. The junior end is where new discoveries are made - it’s risky and exciting, unlike blue chips, which I find fairly boring.
I normally do not take working roles, but when large shareholders presented this to myself and my college Zac Komur it was too good to refuse. This is one of the best undeveloped rare earth assets on the planet and getting the chance to develop it is special so we jumped at the opportunity to turn the company around and get it developed.
You have just raised $91.5 million. What does this mean for the company?
Following the strategic partnership announced with Iluka Resources Ltd for a binding long term offtake agreement and debt funding of US$20m the company raised a further $91.5m allowing the Lindian Board to approved a Final Investment Decision for main construction of Stage 1 of our world-class Kangankunde Rare Earths Project. We are now fully funded and will be the globes next rare earths producer.
Could you tell us about the Kangankunde Project in Malawi and what makes it unique?
It is a very large multi-generational asset. The deposit is high grade, low impurity, low strip ratio, and extremely low in uranium and thorium, which means we can transport globally without a dangerous goods licence.
The simplistic flow sheet, simple mining techniques, low capital costs and low operational costs puts us in the first quartile of the cost curve globally which will allow us to operate in a very low cost environment something our peers will struggle to do.
You also received good news about the expansion of the licence. Could you briefly tell us about that?
We were approved by the Malawian government to expand our Mining Licence area so we can run a feasibility study on Stage Two of Kangankunde. Stage One will produce 15,300 tonnes per year of monazite concentrate and we have signed an agreement with Iluka Resources for US 20 million in funding for a third of that offtake.
Iluka also wants access to Stage Two, where they are looking to take a further 25,000 tonnes per year and fund 50 percent of the capital. Being permitted into Stage Two lets us begin detailed engineering, potentially including a flotation circuit subject to trade-off studies. Stage Two approvals allows us to expedite and work in parallel on a much larger production quota which will provide us the opportunity to capture more market share.
Once operational, how do you see the Kangankunde project reshaping the global rare earths supply landscape?
Now fully funded Kangankunde is the next project to come online. Likely nothing will arrive before us, with a gap after us as well. We bring an extremely low-cost producer into a growing market with geopolitical risk, at a time when governments in places like the United States and Australia are implementing or discussing floor prices.
We intend to be a supply chain disruptor and to take as much market share as possible before others come on. Stage Two is an open book that we can size to market needs, which puts us in a strong position as both a first mover and low-cost producer.
Do you feel more support from Western governments than a year ago, and could you give an example?
Absolutely. For example, Iluka has been funded to the tune of about 1.65 billion dollars by the Australian government, with the government also talking about floor prices to combat global price manipulation. The Mountain Pass deal with Apple and US government support for floor pricing provides the certainty needed to invest. Boom and bust cycles like lithium’s are unhealthy. Price stability underpins and attracts capital, which lets companies commit to projects in a steady way rather than being whipsawed by short-term moves.
There was recent coverage of environmental harms from rare earth mining in China. How are you addressing sustainability concerns?
We have environmental policies and plans that we adhere to. Our deposit is extremely low in uranium and thorium. Our processing inputs are inert and not harmful to the environment, which matters if we are operating there for the next couple of hundred years.
We are an ASX-listed company and we follow strict ESG, health and safety, and global best practice standards, including modern tailings guidelines. Australia has helped set many of these standards, and we work to them to develop the mine safely, protect the environment, and respect the local community.
How would you assess your relationship with the authorities in Malawi?
The Malawian authorities have been very supportive. I have operated in jurisdictions in Africa that are difficult and dangerous. Malawi is different. People are friendly, and the government is stable, accessible, responsive, and keen on economic development.
Where would you like the company to be in two to three years?
We want Stage One in production by the end of next year while we work in parallel on Stage Two, which is a much larger operation. Ideally Stage Two would be moving into commissioning in about two years. There is strong demand and we want to secure as much of the supply chain as possible before others get near it.
We are positioned to be the next producer to come online. Implementation is now the focus. Mining, EPCM, and power contracts are ready to go, and once they fall into place we can develop both stages. I expect Lindian to be a much larger company, many multiples of where it is today.
