Lindian locks in fuel pricing as Kangankunde tracks toward first production Proactive uses images sourced from Shutterstock

Lindian Resources Ltd (ASX:LIN, OTC:LINIF) has secured fixed-price diesel supply for its Kangankunde Rare Earths Project in Malawi, removing exposure to fuel price volatility as the company advances toward first production.

The company has locked in 500,000 litres of diesel at US$2.83 per litre under a 12-month agreement, covering construction, mining start-up and commissioning activities.

The agreement, struck with Malawian supplier Petroda, is structured in two 250,000-litre tranches, with initial deliveries already made to site to ensure continuous supply without requiring significant on-site storage.

“This agreement removes a key input cost risk during construction and mining start up and reinforces Kangankunde’s structural cost advantage. Locking in fuel pricing ahead of volatility provides certainty as we move toward first production and reflects the team’s disciplined approach to cost control and execution,” Lindian executive director Zac Komur said.

Cost certainty underpins pathway to production

The fixed-price arrangement provides cost certainty through a critical phase of development, insulating the project from fluctuations in fuel markets and local pricing adjustments. This is complemented by existing on-site fuel inventory, ensuring uninterrupted supply through construction and commissioning.

Kangankunde’s relatively low power demand of around 3MW is expected to be met through Malawi’s existing grid infrastructure, supported by hydropower and regional interconnection, removing the need for on-site generation and further reducing fuel reliance.

Lindian recently completed a A$100 million institutional placement, providing a debt-free funding pathway into stage 1 mining and processing and supporting a broader development pipeline, including downstream processing initiatives.

Construction activities at Kangankunde remain on schedule, with fuel supply and power infrastructure now in place to support the remaining build and commissioning phases, with no anticipated impact to first production timing.