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Highlights:
- Milestone Construction Contract: Lindian Resources Ltd (ASX:LIN) has awarded a US$1.3 million site construction contract for the Kangankunde Rare Earth Elements (REE) Project in Malawi to European construction firm Mota-Engil.
- Infrastructure Development: The contract covers 5 kilometres of access road construction, including civil works around the mining lease access area and security enhancements.
- Government & Community Support: Strong government backing and local engagement are key factors in the project's advancement, ensuring both economic and infrastructural benefits for the region.
Lindian Resources Ltd (ASX:LIN) has achieved a significant milestone at the Kangankunde Rare Earth Elements (REE) Project in Malawi with the awarding of the first site construction contract. The agreement, valued at approximately US$1.3 million, has been granted to Mota-Engil, a leading European construction group.
The contract covers key infrastructure developments, including the construction of a 5-kilometre access road, integration with the main M1 highway, and civil works surrounding the mining lease access area. These initial steps lay the foundation for broader site development and facilitate seamless logistical operations.
Significance of the Infrastructure Development
The access road construction is a crucial step toward establishing a fully functional mining operation at Kangankunde. Beyond facilitating site access, this infrastructure development ensures the safe and efficient transport of construction materials, mining equipment, and personnel.
The road is being developed in accordance with Malawi Highway Design standards for an unsealed gravel road. Safety measures, including road signage and entry/exit security enhancements, will be implemented. Contractor insurances will be based on local premium structures, reflecting region-specific industry standards.
Local and Economic Impact
Beyond its function within the project, the newly constructed road is expected to generate positive economic outcomes for surrounding communities. Improved accessibility is anticipated to create employment opportunities, enhance business activities, and strengthen local trade networks.
Additionally, Lindian Resources (ASX:LIN) has emphasized the long-term value this infrastructure brings, reinforcing its commitment to sustainable development in Malawi.
Strategic Selection of Mota-Engil
Mota-Engil, a multinational construction company listed in Portugal, has a strong track record in infrastructure and mining projects across Africa. With a global turnover exceeding US$5 billion and approximately US$1.5 billion in revenue from African operations, the company brings extensive expertise to the Kangankunde REE Project.
Established in 1946, Mota-Engil has developed projects across engineering, construction, transportation, and energy sectors. Its involvement in Kangankunde strengthens the project’s standing as one of the world’s most significant REE developments.
Government Support and Regulatory Approvals
Lindian Resources (ASX:LIN) has secured all necessary government approvals for project development. Recent engagements with Malawian authorities, including discussions with Minister of Mines Dr. Kenneth Zikhale R. Ng'oma MP, highlight the strong governmental support backing the initiative.
The company is in the final stages of key commercial agreements, including a fixed-price contract for the process plant and a power supply agreement. Efforts remain underway to finalize funding solutions within Q1 2025, positioning the project for the next phase of construction.
Next Steps for Kangankunde REE Project
With infrastructure development progressing, Lindian Resources (ASX:LIN) is laying the groundwork for the commencement of process plant construction. The newly awarded contract ensures logistical efficiency, operational readiness, and a firm step toward establishing Kangankunde as a major REE supplier.
The strategic development of the access road, partnership with Mota-Engil, and strong government backing position the project for continued success. As demand for rare earth elements increases, this initiative represents a critical advancement in securing long-term resource supply from Malawi.
