By Joseph Dumbula
Australia’s Lindian Resources has initiated mining operations at its Kangankunde rare earths project in Malawi, representing a significant milestone for an initiative aimed at diversifying global supplies of essential minerals used in permanent magnets, moving away from dependence on China.
The company executed its first controlled production blast at the open-pit mine, marking the transition of the project from the development phase to active mining operations.
The commencement of mining coincides with efforts by governments in the United States, Europe, and other regions to establish alternative rare earth supply chains to lessen reliance on China, which currently dominates the mining, processing, and refining of minerals utilized in electric vehicles, wind turbines, and defense applications.
Kangankunde is recognized as one of Africa’s most prominent undeveloped rare earth deposits, primarily containing light rare earth elements such as neodymium and praseodymium (NdPr), which are the two most valuable components in high-performance permanent magnets.
Being landlocked, Malawi will likely require the transportation of concentrates through neighboring Mozambique to reach export ports on the Indian Ocean, which will increase logistics costs.
Additionally, rare earth processing necessitates substantial amounts of chemical reagents, particularly sulfuric acid in various processing methods, which exposes projects to supply chain vulnerabilities. Industry analysts have pointed out that the availability of reagents, metallurgy, and NdPr recoveries are crucial factors influencing the profitability of new rare earth mines.
In recent years, prices for neodymium and praseodymium have experienced volatility due to shifting Chinese production quotas, varying demand from the electric vehicle and magnet industries, and geopolitical tensions surrounding critical mineral supply chains.
Kangankunde is anticipated to become one of the few rare earth projects in Africa to commence production, alongside initiatives in countries such as Tanzania and Angola.
