(Ecofin Agency) – China dominates the global supply of rare earths. To offer alternatives to buyers, investors have launched an assault on African deposits in recent years. This is the case of Lindian, which owns the Kangankunde project in Malawi.
Lindian Resources released on 1is July the results of a feasibility study for its Kangankunde rare earths project in Malawi. Thanks to an initial investment of $40 million, the mine is expected to come into operation in 2025 and deliver a total of 685,716 tonnes of rare earth concentrate over phase 1 (45 years).
Lindian expects to complete the financing needed to develop the mine during the third quarter of 2024, to enable construction work to begin by the end of the year. The commissioning of the processing plant should then take place in the fourth quarter of 2025.
Once in production, Kangankunde can deliver 15,323 tonnes of concentrate annually, containing 1,613 tonnes of neodymium and praseodymium (NdPr) oxides. These are two rare earth metals in high demand in the electric vehicle industry and the wind energy sector. Over the life of Phase 1, Kangankunde is expected to deliver 72,203 tonnes of NdPr.
« The feasibility study results reaffirm the Kangankunde project’s world-class status and its competitive positioning to meet the growing demand for rare earths. The project is distinguished by its high grade, low impurity levels and attractive cost structure“, commented Alwyn Vorster, CEO of Lindian.
Malawi, future stronghold of rare earths in Africa?
If Lindian’s plans come to fruition, the Australian company would become Malawi’s largest rare earth producer. However, it is not the only one operating in the country, as Mkango Resources has been involved in the Songwe Hill rare earth project since at least 2011. The Canadian company has since 2022 published a feasibility study that shows the possibility of operating a mine at Songwe Hill over an 18-year mine life.
For now, however, Mkango has chosen to focus on rare earth magnet recycling projects, with plants set to come online in Germany next year and in the United States in 2026. The development of Songwe Hill is therefore delayed, but its potential remains intact. With an initial investment of $311 million, the mine can deliver 5,954 tonnes of rare earth oxides (TREO) annually, including 1,953 tonnes of NdPr.
Songwe Hill and Kangankunde can therefore enable Malawi to establish itself as one of the main African producers of rare earths. On the continent, Burundi stood out in 2017 by becoming the continent’s leading producer. At the origin of this success, the Gakara mine has nevertheless been under maintenance and upkeep since 2021 due to a dispute between the local authorities and its owner Rainbow Rare Earths. Meanwhile, other companies are working to develop rare earth mines in Tanzania, Uganda and South Africa.
Emiliano Tossou
Also read:
07/03/2024 – Africa close to having a new rare earth mine, thanks to the Ugandan Makuutu project
07/18/2023 – Africa will have to make difficult trade-offs between economy and ecology to exploit its rare earths (report)
