Kangankunde Mine Takes Off: Paving the Way for Economic Growth in Malawi
Key Business Points
- Lindian Resources Limited has completed early works and site establishment at the Kangankunde Rare Earth project, with mining equipment arriving on site ahead of production commencement later this year.
- The company’s owner-operator model is expected to provide greater control over safety, costs, and operating performance, and is a long-term cost-cutting measure that is becoming increasingly common in the mining industry.
- The project is projected to generate $114 million in annual revenue over a 40-year period, with the Malawi Government earning $5.56 million in royalties per year, making it a significant contributor to the country’s economy and a potential catalyst for foreign exchange generation.
The Kangankunde Rare Earth project, owned by Lindian Resources Limited, is making significant progress with the completion of early works and site establishment. The company has started mobilizing its mining fleet, which includes a range of equipment such as dozers, excavators, and dump trucks, as part of its owner-operator model. This approach allows the company to have greater control over safety, costs, and operating performance, and is a long-term cost-cutting measure that is becoming increasingly common in the mining industry. As Zac Komur, executive director of Lindian Resources, noted, "The first Komatsu fleet deliveries are an important step in establishing our owner-operator mining capability, with commissioning and operator training progressing in parallel to support operational readiness."
The project’s progress is in line with the Chamber of Mines and Energy’s projection, and is expected to generate significant revenue for the country. According to a feasibility study report, the project is projected to generate $114 million in annual revenue over a 40-year period, with the Malawi Government earning $5.56 million in royalties per year. This is a significant contribution to the country’s economy, particularly considering that mining contributed less than one percent to the gross domestic product last year, according to the Malawi Government Annual Economic Report 2025.
The project’s success is also expected to have a positive impact on the local economy, with the potential to create jobs and stimulate economic growth. As Grain Malunga, a geologist and mining consultant, noted, "The project has proven successful from the past decade or so and having reached advanced stages of funding solutions and development, it is pleasing that they will soon start generating foreign exchange for the country." The project’s progress is a testament to the potential for foreign exchange generation in Malawi, and highlights the importance of investing in the country’s mining sector.
The completed early site works at the Kangankunde mine include processing areas, run-of-mine pads, internal roads, security buildings, and a solar farm and storage areas. The project is expected to produce its first concentrate later this year, with output estimated to increase from the initial 15,000 metric tonnes to 50,000 metric tonnes annually. This is a significant increase in production, and highlights the potential for the project to make a major contribution to Malawi’s economy. As the project moves forward, it is likely to have a positive impact on the local economy, and provide opportunities for local entrepreneurs and businesses to get involved in the mining sector. With the project’s progress and potential for growth, it is an exciting time for Malawi’s business community, and a testament to the country’s potential for economic growth and development.
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