Lindian Resources Flags Security Breach at Kangankunde Rare Earths Project
Lindian Resources (ASX:LIN,OTC Pink:LINIF) confirmed on Tuesday (April 22) that a trespassing incident took place earlier in the week at its Kangankunde rare earths project in Malawi, Africa.
According to the company, a group of individuals was detained by authorities after entering the site without authorisation and attempting to collect geological samples without consent.
Included in the group were two Chinese nationals.
The matter is currently under investigation by local law enforcement and security agencies.
“Lindian considers this a serious breach of site security and a concerning act of industrial trespass, particularly given the strategic nature of the Kangankunde asset," the company said in a press release.
"The Company takes site safety and security extremely seriously, especially with pre construction works well underway, to find foreign nationals on an active unmapped haul road allegedly taking geological samples is concerning specifically with the current geopolitical nature of the rare earths market," Executive Chairman Robert Martin also noted.
According to Lindian, Kangankunde is recognised as one of the world’s largest and highest-grade undeveloped rare earths resources, making it a strategic asset as the importance of these critical minerals grows.
The company believes the breach underscores Kangankunde's importance in the global rare earths supply chain, especially considering the current geopolitical nature of the rare earths market.
Monazite dominates the project's rare earths mineralisation, with its total indicated and inferred resource coming in at 261 million tonnes averaging 2.14 percent total rare earth oxide (TREO) above a 0.5 percent TREO cut-off grade.
A feasibility study completed in mid-2024 outlines a Stage 1 mine life of 45 years during with Kangankunde is expected to produce approximately 15,300 tonnes of concentrate per year at 55 percent TREO.
Its pre-tax real net present value stands at US$794 million at an 8 percent discount, while its pre-tax real internal rate of return is projected at 99 percent. CAPEX is calculated at US$40 million.
Rare earths are among the resources being affected by US-China trade tensions. Competition has intensified in the market, considering the use of rare earths in electric vehicles, smartphones and military equipment.
China has imposed export controls on key rare earths, while the US has been investing in its domestic processing capacity to reduce its dependence on Chinese rare earths. Other countries are also looking to secure supply.
With Kangankunde as its flagship asset, Lindian said it will continue to engage with local, regional and international authorities to ensure the site’s security. The company plans to provide further updates as appropriate.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
