Lindian kicks off downstream tests for huge Malawi | Australian Markets

Lindian Resources is beginning metallurgical check work of its high-grade Kangankunde monazite from Malawi, helped by Australia’s high nuclear scientific organisation, to focus on a market-ready combined uncommon earth carbonate (MREC).

The Sydney-based Australian Nuclear Science and Technology Organisation (ANSTO) will check acid and alkaline cracking strategies in parallel to pinpoint probably the most economical manner of producing a usable carbonate product, previous to the company producing a remaining certificates of evaluation.

Lindian goals to shift its finish product up the worth chain by transferring past uncooked focus gross sales and into the more profitable world of refined carbonate uncommon earths.

The company says that producing MREC will enhance Lindian’s margins and supply a vendor benefit over its friends with downstream consumers, alloy producers and thru electric vehicle provide chains.

Lindian says the check work outcomes will even help unlock strategic partnerships, offtake offers and potential prepayments or equity investments from international finish customers.

Kangankunde is a globally important uncommon earths project with a sky-high 55 per cent complete uncommon earths oxide (TREO) grade and a low iron content material.

The deposit additionally has uber-low uranium and thorium ranges, which is strategically important for the European and North American markets the place regulators are more and more clamping down on radioactive thresholds.

Management argues that the fabric is the best uncommon earth feedstock on the planet. Its ultra-high specs imply Lindian can slash chemical use in manufacturing, easing environmental hurdles. This will allow the company to fast-track its allowing, cut its capex and ship a cleaner, purer finish product.

This isn’t just a focus, it’s a high-performance, no-penalty, strategically crucial enter to the worldwide uncommon earth provide chain, succesful of assembly probably the most demanding technical and regulatory necessities.

Lindian additionally expects to kick off stage one construction work at website within the subsequent few months supported by a low-capex, low-opex feasibility examine handed down final 12 months.

The 2024 report lifted the lid on a compelling new set of financial numbers for its giant Kangankunde project, delivering a post-tax web current worth of US$555 million (A$925M) utilizing an 8 per cent low cost charge to ship a whopping annual EBITDA of US$84M (A$140M) throughout a 45-year mine life.

The stage one development is estimated to value a very affordable US$40M (A$66.5M) in pre-production capital together with a 12.5 per cent contingency buffer and pays for itself in much less than two years. First manufacturing is focused for 2026.

Sitting on a 23.7 million tonne useful resource at 2.9 per cent TREO, first stage annual manufacturing is anticipated to come back in at 15,300t operating at a TREO grade of 55 per cent.

Kangankunde is within the industry’s lowest value quartile with a forecast average annual free-on-board working charge of simply US$2.92 per kilogram TREO.

As Beijing continues to roll out contemporary export controls on uncommon earth applied sciences and international producers scramble to secure a non-Chinese provide, Lindian’s check work – forward of fast-track downstream processing – couldn’t come at a higher time.

With first output focused for subsequent 12 months, Lindian seems to be in a candy spot as a extremely sought after ready-to-go source with a top-tier product and scalable manufacturing.

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