Lindian, Iluka ink strategic partnership for Kangankunde rare earths project
Lindian Resources has secured a strategic alliance with Iluka Resources to advance its flagship Kangankunde rare earths project in Malawi, establishing a long-term revenue stream and de-risking the development phase.
The deal includes a binding US$20 million (A$30.64 million) loan facility and a 15-year offtake agreement for 90,000 tonnes of rare earth monazite concentrate equating to 6,000 tonnes annually from Kangankunde’s first stage of production.
Iluka will process the concentrate at its fully integrated Eneabba rare earths refinery in Western Australia, a facility co-funded by the Australian Government. The partnership positions Kangankunde as one of the most advanced rare earth projects globally, with a mine life estimated at 45 years. The project’s high-grade deposit yields premium monazite concentrate grading 55% total rare earth oxides, attracting interest from multiple potential partners.
Scope of agreement
Under the agreement, Iluka also holds a right of first refusal to participate in Kangankunde’s planned phase two expansion, which could add a further 375,000 tonnes of concentrate production up to 25,000 tonnes annually over 15 years. This would require Iluka to fund 50% of expansion costs and agree to revised commercial terms.
The loan carries a five-year term, with a grace period until project completion, and a weighted average interest margin of about 9.7%. Completion remains subject to Iluka’s due diligence and customary conditions precedent.
Executive chairman Robert Martin said the agreements provided “a multi-decade source of feed” for Eneabba, offering floor price protection, no financial ratio covenants, and terms aligned with the project’s needs. He added that stage one funding was now “significantly de-risked,” while stage two had gained momentum through Iluka’s expansion option.
