Africa's Next Rare Earths Mine Gains Greater Certainty Over Australian Offtake Plans
Iluka has secured access to the full A$1. 65 billion Australian government loan Eneabba will process material from Malawi’s Kangankunde project under a 15-year supply agreement The financing and confirmed timeline improve visibility over Kangankunde’s future revenues Iluka Resources announced on June 23 that it had received confirmation that it can. . .
Iluka has secured access to the full A$1. 65 billion Australian government loanEneabba will process material from Malawi’s Kangankunde project under a 15-year supply agreementThe financing and confirmed timeline improve visibility over Kangankunde’s future revenuesIluka Resources announced on June 23 that it had received confirmation that it can access the full A$1. 65 billion ($1. 14 billion) loan provided by the Australian government. The funding will support the completion of its Eneabba refinery, which is expected to process part of the output from Kangankunde, Africa’s next rare earths mine. Funding Confirmed for Eneabba RefineryIluka said it remains on track to fully draw down by the end of the year the first A$1. 25 billion tranche already made available to the company. The confirmation from Australian authorities covers the remaining A$400 million, securing the financing required to complete the Eneabba refinery, which remains scheduled to begin operations in mid-2027. Once operational, the facility will process both monazite, a rare earths ore, from Iluka’s other activities and part of Kangankunde’s production, amounting to 6,000 tonnes of concentrate annually. This arrangement stems from an agreement signed in August 2025 between Iluka and Lindian Resources, the developer of the Malawi project. The 15-year contract is expected to make Kangankunde a supplier of roughly 10% of the refinery’s expected feedstock requirements. The project is expected to begin production by the end of 2026 and is also set to become the first rare earths mine to enter operation in Africa since activities ceased at Burundi’s Gakara mine in 2021. Improved Visibility Into Future RevenueAgainst this backdrop, the latest developments at Eneabba, from the full financing being secured to the confirmation of the project timeline, provide greater visibility into Kangankunde’s future revenue stream. This is an important consideration for any mining project in development, particularly when it comes to securing buyers and establishing long-term offtake arrangements. That visibility, however, remains contingent on construction work being completed in line with the announced schedules. Before Eneabba comes online, Kangankunde will also have to direct part of its production to an existing facility in Kazakhstan, in which Lindian Resources acquired a 51% stake in March. The plant will produce mixed rare earth carbonate (MREC), a higher-value product. The mine’s annual production capacity is estimated at 20,000 tonnes of concentrate. Aurel Sèdjro Houenou