Lindian argues the trade-off more than pays for itself over the longer term, particularly as Kangankunde is one of the biggest undeveloped rare earths deposits in the world.
Lindian Resources executive director Zac Komur said: “Execution is the priority. By preparing the plan and working the plan with our own fleet and team, we remove layers, protect margin and keep control where it matters.”
Kangankunde’s allure is hard to miss. It hosts a monster 261-million-tonne resource, runs high grade, processes with ease and, unlike many rivals, carries zero radioactive baggage.
For good reason, the project is widely considered one of the cleanest and most commercially attractive rare earths assets outside China – a combination not lost on market analysts when noting the rarity of the orebody.
The company has wasted no time putting its plans into motion. It says procurement of key mining equipment is already underway, and management has kicked off recruitment programs to build a local workforce capable of scaling up operations.
With trial mining, beneficiation test work and construction works advancing, Lindian is aiming to push Kangankunde into production by February next year.
And it seems the timing could not be better, as global demand for rare earths – critical for electric vehicles, wind turbines and defence technologies – continues to surge despite escalating supply chain tensions with China.
If the numbers land the way management expects, Lindian’s call to take full control of Kangankunde may not just be a cost-saving move, it could be the masterstroke that transforms a promising deposit into one of the world’s rare earths powerhouses.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
