Lindian appoints chairman to kick-start giant Malawi rare earths play

Lindian Resources has appointed seasoned businessman Robert Martin as chairman to assist with the development of its mammoth Kangankunde project in Malawi, one of the largest rare earth deposits in the world.

Martin, who sits on a number of other ASX-listed company boards has a track record of experience across a broad range of sectors, including mining and mining services, manufacturing and capital markets.

Lindian’s incoming chairman has also worked across a variety of global mining jurisdictions having recently owned, operated and sold a large and successful mining services business.

He succeeds outgoing chairman Asimwe Kabunga, whose resignation was announced last month.

In addition to his new role at Lindian, Martin holds his fair share of leadership positions, serving as non-executive chairman of Infini Resources, Pioneer Lithium, Equinox Resources and Battery Age Minerals and as a non-executive director at PARKD.

In a move likely to resonate well with investors, Martin will forgo any performance rights or consultancy wages outside of his standard director’s fee at Lindian until shareholder value is returned to the company.

The company hopes his vast network and operational insights can inject fresh momentum into Lindian’s operations as it looks to finally advance its flagship Kangankunde rare earths project in Malawi. His appointment comes at a critical time as Lindian edges closer to commencing construction of the Kangankunde mine.

Recently highlighted as one of the world’s most promising rare earths projects due to its high-grade, low-cost potential, Kangankunde is fully permitted and ready for the next phase of its development having just secured a US$50 million (A$80.1m) funding agreement and off-take package from the United States-based commodity trader Gerald Metals Group.

The colossal project has an initial ore reserve of 23.7 million tonnes with an impressive average grade of 2.9 per cent total rare earth oxides, underpinning a mine life of 45 years.

Studies suggest the project could generate about 15,300t per year of clean, high-grade total rare earth oxides concentrate running at about 55 per cent for a total of 8400t of rare earth oxides and 1640t of the valuable magnet rare earths neodymium and praseodymium.

Lindian announced a barn-storming feasibility study for Kangankunde in July that projected a net present value of US$555m (A$872m) at an 8 per cent discount rate, despite rare earth prices sitting near four-year lows.

When up and running, the project is forecast to generate an average annual EBITDA of US$84m (A$132m) after a capital cost of just US$40m (A$62.9m). This would represent a payback period of less than two years, running at an average, ultra-low operating cost of US$2.92 per kilogram TREO.

The exceptional financials presented in the feasibility study would be considered globally attractive even with the current trough in rare earths prices.

Soaring demand for rare earths is expected to be fuelled by their critical role in clean energy technologies and geopolitical shifts, such as China’s export restrictions to the US and second-party countries. Given the quality and size of the resource at Kangankunde punters will likely be keeping a close eye on Lindian as its gathers pace towards production.

Martin could be joining the helm at an opportune time for Lindian, as it looks to navigate its development and construction in the growing African mining jurisdiction of Malawi. With fresh management and a handy US$50m (A$80.1m) in funding, Lindian could be on the cusp of delivering the next globally significant rare earths project to the ASX.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au