Process Plant Optimised and Obsideo awarded D&C Contract
| Stock | Lindian Resources Ltd (LIN.ASX) |
|---|---|
| Release Time | 17 Dec 2025, 8:23 a.m. |
| Price Sensitive | Yes |
Lindian Optimises Process Plant, Appoints Obsideo as D&C Contractor
- 25% increase in ore processing capacity, boosting production to 20,000tpa of Monazite Concentrate
- Project NPV8 (Pre-Tax) increases by 45% to A$1,725m and annual EBITDA by 38% to A$171m
- Obsideo appointed as D&C contractor based on strong technical expertise and proven delivery of mineral separation projects
Lindian Resources Limited (ASX: LIN) has taken another critical step towards development of its flagship Kangankunde Rare Earths Project in Malawi by optimising the process plant design and appointing Obsideo as the Design & Construct (D&C) contractor. The optimisation work has delivered a 25% increase in ore processing capacity, boosting production from 15,300 tonnes per annum (tpa) to 20,000tpa of Monazite Concentrate. The project's NPV8 (Pre-Tax) has increased by 45% to A$1,725m and annual EBITDA by 38% to A$171m. The process plant design has been optimised to deliver a comminution circuit capacity of 600,000 tonnes per annum, simplifying the circuit and improving efficiency and throughput. Lindian has completed a structured competitive tender process and appointed Obsideo as the preferred D&C contractor based on their proven ability to meet the technical requirements, relevant experience, and commercial terms. Obsideo is a South Africa-based engineering and project delivery group with a strong track record across Africa and other international jurisdictions, including specific rare earths processing expertise. The D&C contract covers the full engineering, procurement, construction and commissioning of the Stage 1 processing plant, keeping the project on schedule for first production in Q4 2026.
Stage 1 production increased to 20,000tpa of Monazite Concentrate, with TREO in Concentrate increased from 8,259tpa to 11,028tpa. Average annual revenue increased from $170.3m to $228.9m, and average annual EBITDA increased from $124.5m to $171.5m.
With early works complete and major packages advancing in parallel, the appointment of Obsideo as the D&C contractor keeps Lindian firmly aligned with the schedule and ensures Stage 1 capital remains consistent with the Definitive Feasibility Study parameters.