Key Minerals of the African Continent: The Kangankunde Project Demonstrates Australia's Control over Africa's Supply

¬ Kangankunde project is fully owned by Lindian Resources, Australia

¬ Australian institutions and private investors dominate the equity

¬ Malawi can still obtain free equity in accordance with its mining law

The Kangankunde Rare Earth Mine Project is expected to become the next large rare earth mine in Africa, with plans to start production in Malawi by the end of 2026. To ensure timely completion, the fully owned project company Lindian Resources is accelerating on-site development work. This project is an important strategic asset for this Australian mining giant and its shareholders.

Investors holding shares in Lindian Resources can directly participate in the development of the Kangankunde mine. Shareholders have voting rights on the company's strategic decisions and are expected to benefit from the cash flows generated by the mine in the future (including potential dividends). The shareholder base of Lindian Resources remains primarily composed of Australian investors, with Rig Management Fund Company leading the way.

Alternative investment management company Lindian is the largest institutional shareholder of the company, holding a 10.04% stake. Following closely is the Australian private company Kabunga Holdings, holding 7.4%, while other investors include Bonakel Company (holding 4.1%) and Wen Capital Company (holding 3.6%). The capital structure of Lindian also includes non-Australian investors, with Nigerian private company Prithvi Energy Nigeria holding 6.7% of the shares. In addition, individual investors are also involved, with mining entrepreneur Rohan Patnaik holding 3.48% of the shares.

At this stage, the Malawi government does not hold any equity in the Kangankunde mine. However, according to the country's mining regulations, the government may "directly or through a designated representative, obtain free equity in any project that meets the criteria for large-scale mining permits." Whether the Lilongwe government will exercise this right remains to be seen.

Regardless, the Kangankunde mine is expected to become a new source of tax revenue for Malawi. The country plans to increase the contribution of the mining industry to GDP from less than 1% currently to 10% by 2063. According to existing plans, the first phase of the mine is expected to produce 15,300 tons of rare earth concentrate annually, and the second phase is expected to increase production to 50,000 tons per year, although the second-phase plan is still under review.

Source: rfi

Original: toutiao.com/article/1852720285266186/

Disclaimer: This article represents the views of the author himself.