Lindian Resources will move forward with its plans to develop the Kangankunde rare earths project in Malawi after securing the green light from shareholders to acquire the site’s owner Rift Valley Resource Developments. Shareholders unanimously voted in favour of the purchase this week after Lindian made its first tranche payment in its bid to acquire Rift Valley earlier this year.
Lindian Resources will move forward with its plans to develop the Kangankunde rare earths project in Malawi after securing the green light from shareholders to acquire the site’s owner Rift Valley Resource Developments.
Shareholders unanimously voted in favour of the purchase this week after Lindian made its first tranche payment in its bid to acquire Rift Valley earlier this year. The US$2.5 million sum was the first of four payments equalling US$30m in total, with the remaining US$27.5 million payable in three tranches within 48 months from July this year.
Kangankunde is considered one of the world’s largest rare earths operations outside of China and hosts an outdated resource of 2.53 million tonnes grading 4.24 per cent rare earths oxide and containing 107,000 tonnes of rare earths oxide when using a cut-off grade of 3.5 per cent. It is a carbonatite-hosted system with mineralisation exposed at the surface, open at depth and the company sees plenty of potential to increase its size.
The ratio of neodymium and praseodymium in the total concentrate expected to be produced from the project is about 19 per cent with a mining licence already granted for the site. The company says neodymium and praseodymium have become increasingly valuable since the project’s economics were last independently evaluated more than 10 years ago.
LIndian Resources Executive Chairman, Asimwe Kabunga said: “In the last week we have also secured strong community support to advance the project, the Malawian Government has again reinforced its commitment, and it is evident that investors in Lindian are starting to recognise the potential for what is undoubtedly a world-class rare earths asset.”
Rare earths are a group of 17 elements with unique catalytic, metallurgical, nuclear, electrical, magnetic and luminescent properties positioning them as highly valued and integral components in many of rapidly emerging technologies.
The elements are used in super magnets, electronic and computing equipment, lasers, batteries and catalytic converters.
China has long held a strategic stranglehold on the production of rare earths elements across the globe with up to 96 per cent of the world’s total production, according to US Geological Survey statistics. However, in recent years its grip has appeared to loosen as several countries have sought to secure an alternative source.
The geological body says China’s production in 2021 amounted to 60 per cent of the global total, down from 80 per cent in 2017 and more than 96 per cent in 2009.
Lindian has been busy over the past few months gaining local support for the development of Kangankunde and recently held a series of meetings with authorities in the district. In good news for the company, following on from the meetings local officials and community groups fully endorsed the planned resource development in addition to mining and processing operations plans.
With shareholder approval for the purchase of Rift Valley now in place, the company plans to expedite early works programs including clearing of roads and drill pads leading to a drill program this year. Lindian will also collect bulk samples to commence metallurgical test work.
Considering the global interest in securing rare earths and the potential size of the Kangankunde deposit, the market will be keeping a close eye on what the future holds for Lindian as it begins development at the site.
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