Malawi Rare Earths Project Receives Funding Support Ahead of 2026 Start

Financial institution EcoBank Malawi has submitted a $30 million loan proposal to support the development of the Kangankunde Rare Earths Project in Malawi. According to project operator Lindian Resources, the funding will be structured as a Senior Secured Term Loan Facility, with EcoBank operating as the Mandated Lead Arranger and lender for the five-year loan.

The loan supports the project’s development and construction phase, complementing an earlier offer from a European investment bank for a $40 million, five-year term loan. In December 2024, Lindian Resources also signed a non-binding agreement with the Gerald Group for $50 million in funding. The project has also received proposals for offtake prepayment funding from downstream players and commodity traders.

Teck Lim, CFO of Lindian Resources, stated that the range of financing proposals reflects strong confidence in the project’s quality and potential. “We will short-list the preferred funding pathway that is fit-for-purpose and safeguards the project’s long-term success, maximizes returns for our shareholders and positions Lindian as a globally significant producer of rare earths,” he said.

Lindian Resources is advancing project development with a $1.5 million contract awarded to MotaEngil for the construction of a road network. A meeting with the Malawian government to finalize the Mining Development Agreement is scheduled for May 15-16, 2025. The company is also conducting a logistics trade-off study to determine an efficient transportation route from mine to market.