• Lindian approves Kangankunde rare earths mine investment in Malawi
• Raises A$91.5M, secures $20M loan, Iluka signs offtake deal
• Targets 15,300 t/y by 2026, expansion studies underway

Lindian Resources announced on Wednesday a final investment decision for the construction of its Kangankunde rare earths mine in Malawi. The funding, which includes a 20 million loan from Iluka Resources,follows a capital raise of A$91.5 million ($59 million) through a share placement, primarily subscribed by new shareholders. The company aims to have Malawi’s first rare earths mine in operation by the fourth quarter of 2026.

The financing was secured through the issuance of 435.7 million new ordinary shares at A$0.21 a piece. Lindian said strong demand from institutional investors in Australia and abroad allowed it to raise the necessary funds to cover the $40 million in construction costs for Phase 1. Concurrently, Iluka provided a five-year, $20 million loan and secured an offtake agreement to purchase 6,000 tonnes per year of monazite rare earth concentrate, totaling 90,000 tonnes over 15 years. The agreement includes a floor price above production costs and an extension clause for an additional 15 years.

For Lindian, this financing model not only secures the start of an annual production of 15,300 tonnes of concentrate by the end of 2026 but also paves the way for the mine's expansion in Phase 2. The Kangankunde mining license has been extended to 2,500 hectares, up from an initial 900 hectares, and the funds raised will be used to launch studies and engineering work to increase capacity to 50,000 tons per year in the long term. As part of the expansion, Iluka has a right of first refusal on an additional 25,000 tonnes per year, provided it finances half of the expansion costs.

It remains to be seen if these announcements will materialize in the coming months, given that Lindian reached a similar $50 million financing agreement with Gerald Metals in December 2024. The U.S. trader, which was supposed to buy the Phase 1 production from Kangankunde, has not been mentioned in Lindian's press releases since May 2025.

Emiliano Tossou