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Lindian Resources (ASX:LIN) is shifting into an owner-operator mining model at its Kangankunde Rare Earths Project in Malawi, with scheduling, costs, equality, human resources, and safety all factors in the decision.
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After assessing five contractor proposals, Lindian has decided that running things directly would actually save the company as much as 30% a year.
Under the new model, mining execution costs are expected to drop from around US$12 per tonne to $8.40, the company wrote Tuesday. This, Lindian explained, would save “about US$3.8 million on the same throughput.”
HotCopper understands capital expenditure for the mine’s first stage will stay unchanged from the July 2024 feasibility study; most savings will come from civil and tailings works, which will then go to funding the mining fleet. Those fleet tenders are now in final negotiations heading into December.
With Lindian now at the helm, the company has appointed Samuel Boachie as the on-the-ground mining manager. Boachie, with his 23 years of open-pit mining experience in Africa, is expected to “drive clear planning.”
“Execution is the priority. We are building a safe, predictable operation with a single line of accountability for safety, schedule, cost, and quality,” the company’s executive director, Zac Komur, explained this morning.
“By preparing the plan and working the plan with our own fleet and team, we remove layers, protect margins, and keep control where it matters. The fleet will also deliver additional savings in pre-production civils and TSF activities. We look forward to the first blast early next year, and to ROM stocks beginning to build.”
Lindian has circled February next year for its earliest mining date.
In response, markets have priced LIN around -2% lower through to Tuesday arvo.
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