Lindian Resources (ASX: LIN) has awarded a contract to Mota-Engil, a leading European construction group, for the construction of a 5km site access road at its Kangankunde Rare Earths Project in Malawi. The US$1.3 million contract includes an 18-week construction program that will link the mining lease to the main M1 highway.
The scope of work includes intersection works at the M1 highway, civil works around the mine lease entry, a security booth, and signage to meet Malawi Highway Design standards for an unsealed gravel road. Lindian highlighted that this infrastructure will not only enable seamless transportation of construction materials and equipment but also enhance road safety and accessibility for local communities.
Lindian CEO Alwyn Vorster described the contract as an important milestone for Kangankunde, reinforcing the company’s commitment to progressing the project. He also noted that Mota-Engil’s involvement in this first development contract could potentially lead to broader collaboration on additional work packages.
The company confirmed that all required government approvals have been secured and that discussions with the Malawi Government and the newly appointed Minister of Mines, Dr. Kenneth Zikhale R. Ng’oma MP, have been positive.
Lindian is in the final stages of securing key commercial agreements, including a fixed-price contract for the process plant and a power supply contract. The company remains committed to finalizing funding solutions within Q1 2025, with the goal of commencing Stage 1 process plant construction in the first half of 2025, subject to financing.
Beyond its impact on project development, the new access road is expected to bring lasting economic benefits by improving local infrastructure, creating employment opportunities, and supporting businesses in surrounding communities.
