Lindian Resources advances Kangankunde toward Q4 production after milestone June quarter Proactive uses images sourced from Shutterstock

Lindian Resources Ltd (ASX:LIN, OTC:LINIF) moved closer to becoming a rare earths producer during the June 2026 quarter, completing key construction and mining-readiness milestones at the Kangankunde Rare Earths Project in Malawi while strengthening its balance sheet and advancing a downstream processing strategy in Kazakhstan.

The company maintained its target for first concentrate production in the fourth quarter of 2026, with front-end commissioning scheduled for October and practical completion targeted for mid-November.

Mining operations began shortly after quarter-end following the first production blast on July 1, which fragmented about 13,100 tonnes of material, including an estimated 5,500 tonnes of ore. Ore haulage and stockpiling are now underway ahead of plant commissioning. 

Kangankunde reaches mining-readiness milestones

During the quarter, Lindian completed the Stage 1 pit haul road, secured explosives import approvals and formally commissioned the onsite explosives magazine.

The production drill rig also completed the first blast pattern, while access was established to the top of the Stage 1 pit.

Around 27,000 tonnes of ore had been placed on the run-of-mine pad by quarter-end, providing early feed inventory to support commissioning and the ramp-up to commercial production.

Construction of the processing plant also progressed, with concrete pours completed across the shaking table, semi-autogenous grinding mill, multi-gravity separator, low-intensity magnetic separator, wet high-intensity magnetic separator and product shed areas.

The tailings storage facility reached about 50% completion and remained on track for completion in September 2026.

Supporting infrastructure also advanced, including completion of a 27-kilometre power corridor and installation of 269 poles connecting the project toward the Balaka ESCOM substation.

All 17 planned water boreholes were drilled and the required water permits were secured.

Lindian said all major equipment and infrastructure items had been procured, with mobilisation to site underway, reducing delivery risk ahead of commissioning.

Safety performance maintained during construction ramp-up

The Kangankunde workforce reached 3,318 personnel during the quarter, with the project recording 873,003 work hours without a lost-time injury.

The company said the result reflected strong safety discipline as construction and operational activity continued to increase.

Executive chair Robert Martin said the quarter demonstrated Lindian’s ability to deliver Kangankunde “on time, on budget and in a safe, efficient manner”.

“Production remains on target for Q4 2026,” he said.

Stage 2 study targets larger production profile

Alongside Stage 1 development, Lindian continued work on a Stage 2 feasibility study led by DRA Global.

The study is targeting completion in December 2026 and is assessing an expanded 4 million tonnes-per-annum development pathway.

Subject to the study and a final investment decision, the expansion could lift total concentrate production capacity to about 120,000 tonnes per annum.

The company completed 7,764 metres of Stage 2 infill drilling during the quarter, including 2,391 metres of existing reverse circulation holes extended with diamond core.

Pending assays will support an updated mineral resource estimate, mine planning, reserve conversion and the feasibility study.

Kazakhstan processing strategy progresses

Lindian also advanced due diligence on its proposed acquisition of the SARECO mixed rare earth carbonate processing facility in Stepnogorsk, Kazakhstan.

Technical, environmental, legal and commercial work assessed the plant’s flowsheet, processing capability, reagent and utilities supply, environmental compliance and ownership structure.

The company believes the existing facility offers a relatively low-capital pathway into higher-value mixed rare earth carbonate production using an operating plant, established permits and an experienced local workforce.

Lindian also confirmed access to sulphuric acid from the Stepnogorsk Sulphuric Acid Plant, a state-backed producer within Kazakhstan’s Samruk-Kazyna sovereign wealth fund.

Subsequent test work completed by the Australian Nuclear Science and Technology Organisation achieved 98% neodymium-praseodymium extraction and 96% total rare earth and yttrium extraction from Kangankunde concentrate.

Completion of the SARECO acquisition remains subject to definitive agreements and third-party approvals, with completion targeted during the September quarter.

Funding supports production and expansion plans

Lindian completed a A$100 million institutional placement during the quarter, leaving the company with A$108 million in cash at June 30.

The funding provides a debt-free pathway to first concentrate production and will also support the Stage 2 study, long-lead equipment and the proposed SARECO integration.

NBS Bank also approved an undrawn US$11.6 million, or about A$17 million, composite facility comprising asset finance and working capital support for Kangankunde.

The company spent A$24.7 million on property, plant and equipment during the quarter, primarily relating to processing plant construction, mine development and supporting infrastructure.