Lindian quarterly highlights Kangankunde construction push and transformational downstream deal Proactive uses images sourced from Shutterstock

Lindian Resources Ltd (ASX:LIN, OTC:LINIF) has fully entered construction mode at its flagship Kangankunde Rare Earths Project in Malawi while securing a downstream processing acquisition that reshapes its position in global rare earths supply chains.

During the March quarter, engineering contractor Obsideo mobilised to site and began civil works for the Stage 1 processing plant, marking a transition from early works to full-scale execution. The company continues to target first ore feed and initial concentrate production in November 2026.

Earth works well under way preparing haul roads ahead of first blast.

At the same time, Lindian executed a binding agreement to acquire the SARECO mixed rare earth carbonate (MREC) facility in Kazakhstan via a joint venture, providing immediate downstream capability at a fraction of replacement cost.

Executive chairman Robert Martin said the quarter marked a pivotal shift for the company.

“Kangankunde stepped into full construction execution during the quarter, with Obsideo mobilised to site, long-lead equipment ordered and over 740 people working safely across multiple fronts,” he said. “In parallel, we executed the acquisition of the SARECO MREC facility in Kazakhstan, a move that transforms Lindian from a concentrate producer into an integrated rare earths company.”

Construction and operational momentum builds

Key construction milestones during the quarter included:

Mobilisation of 740 personnel on site, with more than 500,000 lost-time injury-free hours achieved Placement of orders for long-lead equipment including the SAG mill, thickener and filtration systems Commissioning of the Tipume accommodation camp, supporting up to 90 workers Progress across power infrastructure, with grid energisation targeted for July 2026

Lindian is also advancing Stage 2 expansion planning, with drilling under way to upgrade resources and support a potential increase in throughput to 4 million tonnes per annum.

Stage 2 resource definition and expansion drilling underway at Kangankunde.

Downstream acquisition transforms strategy

The standout development was the SARECO acquisition, secured for US$15 million versus an estimated greenfield replacement cost exceeding A$500 million.

The facility, previously owned by Sumitomo Corporation and Kazatomprom, is expected to produce MREC from Kangankunde feedstock in Q4 2026, aligning with first concentrate production.

The deal positions Lindian among a limited group of Western-aligned rare earths developers with both upstream mining and downstream processing capability.

Story Continues

Test work during the quarter confirmed Kangankunde concentrate can be successfully processed at SARECO, de-risking the integrated production pathway.

Monazite Concentrate from Kangankunde and MREC produced at the SARECO facility and an additional view of the SARECO facility

Logistics advantage and strong cash position

In another key development, testing by ANSTO confirmed Kangankunde concentrate is exempt from radioactive transport classification, reducing regulatory burden and improving export flexibility relative to many peers.

Financially, Lindian ended the quarter with $42 million in cash, with additional funding secured post-period through a $100 million placement and an US$11.6 million debt facility.

With construction advancing, downstream integration secured and first production targeted in late 2026, Lindian is positioning itself as a near-term entrant into the global rare earths supply chain.

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