Lindian Resources has signed a $1.3 million contract with Mota-Engil for access road construction at the Kangankunde rare earths project in Malawi. This project aims to produce high-grade rare earths, supported by a $50 million funding agreement. The works are expected to enhance local infrastructure and provide job opportunities, marking a pivotal step in the project’s development.
Lindian Resources has signed a significant $1.3 million contract with Mota-Engil for the construction of an access road and civil works at its Kangankunde rare earths project in Malawi. This contract marks a crucial step toward advancing the project, which will entail constructing a primary highway access, 5 kilometers of internal roads, and various site works, expected to take about 18 weeks to complete.
Mota-Engil, a reputable European construction company, was selected after a thorough bidding process. This firm has a robust track record in Malawi, having managed major engineering projects, including a key railway initiative. Their involvement enhances not only the infrastructure but also the reputation of the Kangankunde project.
The Kangankunde project is highlighted as one of the most promising rare earths initiatives, due to its high-grade and low-cost potential. Lindian has recently secured a $50 million funding agreement, which includes an off-take package from Gerald Metals Group, positioning the project favorably for its next development phase.
Initial assessments indicate that the project comprises a reserve of 23.7 million tonnes of ore at a remarkable average grade of 2.9 percent total rare earth oxides, ensuring a mine life of 45 years. With projections to produce approximately 15,300 tons annually of high-grade rare earth oxides, including valuable elements like neodymium and praseodymium, the project holds substantial promise.
Alwyn Vorster, CEO of Lindian Resources, emphasized that awarding this contract is a pivotal milestone, demonstrating the company’s dedication to advancing the project with local support from the Malawi government. This development is expected to boost local employment and enhance transport infrastructure, thereby supporting the regional economy.
Moreover, Lindian is close to finalizing crucial procurement agreements, including a fixed-price contract for a processing plant and a power supply, vital for project momentum. The company aims to secure funding solutions imminently, leading to the commencement of processing plant construction shortly after.
Lindian Resources is focusing on its Kangankunde rare earths project in Malawi, which has been recognized for its potential to supply high-grade rare earth materials. The project aims to leverage recent funding agreements to further its development, significantly impacting local communities by improving infrastructure and creating job opportunities. Lindian’s strategic partnership with Mota-Engil reflects its commitment to advancing the project efficiently and effectively while fostering local economic growth.
The signing of the contract with Mota-Engil marks a significant advancement for Lindian Resources’ Kangankunde project, highlighting its potential as a leading global rare earths source. The project’s favorable results and strong governmental support signal promising prospects for regional development and sustainability. Lindian remains focused on securing further agreements to facilitate the prompt progression of project construction and operational activities.
Original Source: www.businessnews.com.au
