Iluka Resources has signed a binding agreement with Lindian Resources for the long-term supply of rare earth concentrate, supporting development of its Eneabba rare earths refinery in Western Australia.
Lindian is developing the Kangankunde rare earths project in Malawi and will supply Iluka with 6000 tonnes per annum of concentrate for 15 years.
The material, which represents around 10 per cent of Eneabba’s total capacity, is considered complementary to Iluka’s existing feedstock sources.
“Our agreement with Lindian is a further step towards delivering on the significant industry building opportunities presented by Iluka’s development of the Eneabba rare earths refinery,” Iluka Resources managing director Tom O’Leary said.
“Against a backdrop of heightened emphasis on diversifying the supply of rare earths globally, this is an example of Iluka catalysing a new mine into production as its Australian refining customer.”
The Eneabba refinery, currently under construction and scheduled for commissioning in 2027, is being developed in partnership with the Federal Government.
Once operational, it will be Australia’s first fully integrated rare earths refinery, capable of producing separated light and heavy rare earth oxides.
To support Kangankunde’s development, Iluka has agreed to provide Lindian with a $US20 million loan facility.
The five-year term loan includes an interest rate of 11 per cent per annum (plus SOFR), with interest capitalised for the first two years of construction.
The facility remains subject to Iluka completing due diligence and Lindian securing full funding for Kangankunde.
“The Kangankunde deposit has the potential to support a large, low-cost and simple mining operation,” O’Leary said.
“I am delighted that our discussions have culminated in a binding agreement, including the potential to further expand feedstock supply in the future.”
Lindian aims to produce a premium monazite concentrate with 55 per cent total rare earth oxide (TREO) from Kangankunde, with an initial mine life of 45 years.
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