Lindian Resources Secures Approval for Major Mining Licence Expansion at Kangankunde Rare Earths Project

Lindian Resources has secured approval to expand its mining licence area for the Kangankunde Rare Earths Project from 900 hectares to 2,500 hectares. This will enable parallel development of Stage 2 modular expansion alongside Stage 1 plant construction, potentially increasing production from 15,300 tonnes per annum to 75,000-100,000 tonnes. The expansion also provides flexibility for phased infrastructure rollout and adaptive production strategies. The company's strategic partnership with Iluka Resources supports these growth plans.

Lindian Resources (ASX: LIN) has received approval to expand its mining license area for the Kangankunde Rare Earths Project from 900 hectares to 2,500 hectares. This significant expansion will enable parallel development of Stage 2 modular expansion alongside Stage 1 plant construction, potentially increasing production from 15,300 tonnes per annum to 75,000-100,000 tonnes. The expansion also offers flexibility for phased infrastructure rollout and adaptive production strategies.

The strategic partnership with Iluka Resources (ASX: ILU) supports these growth plans. The partnership, which includes a binding $20m loan facility and a 15-year full-form offtake agreement, ensures a stable revenue stream for Lindian. The loan, with a five-year tenor and a grace period until project completion, carries a weighted average interest margin of approximately 9.7% [1].

Iluka will receive 90,000 tonnes (6,000t annually) of rare earth monazite concentrate from the Kangankunde project, which will feed into Iluka’s fully integrated Eneabba rare earths refinery facility in Western Australia. The facility is co-funded by the Australian Government. This partnership enhances Kangankunde’s position as one of the premier and most developed rare earth ventures globally [2].

Lindian’s executive chairman, Robert Martin, commented, “These agreements will provide a multi-decade source of feed for Iluka’s Eneabba refinery facility in Western Australia, backed by the Australian Government. The floor price protection, no financial ratio covenants and offtake-linked terms are fit-for-purpose for the company, ensuring the long-term interests of shareholders are enhanced” [1].

The expansion of the mining license area and the strategic partnership with Iluka represent significant milestones for Lindian. These developments not only de-risk the project but also provide a clear pathway to production and growth. The company’s focus on a long-term, sustainable approach to rare earths production aligns with global demand trends and supports the development of Australia as a strategic hub for downstream processing.

References:
[1] https://www.mining-technology.com/news/lindian-resources-iluka-kangankunde-project/
[2] https://stockhead.com.au/resources/resources-top-5-lindian-partners-with-ree-major-iluka-for-kangankunde/