Malawi rare earth development is further advanced than any other African jurisdiction by project stage: 740 personnel are on site at Kangankunde as of April 2026, A$100m was raised in an oversubscribed institutional placement that month, and first monazite concentrate is targeted for November 2026. A second project, Songwe Hill, holds EU Strategic Project status under the Critical Raw Materials Act. Benchmark Mineral Intelligence projects the two projects combined will supply approximately 30% of Africa’s total rare earth output by the end of the decade.
Malawi Rare Earth Deposits — Two World-Class Projects
Malawi hosts two carbonatite-hosted rare earth deposits at advanced development stage. Kangankunde, in southern Malawi, holds a resource of 261 million tonnes at 2.14% TREO (total rare earth oxide) — one of the largest and highest-grade deposits outside China — and is currently under active construction. Songwe Hill, in the southeastern Phalombe District, holds mineral reserves of 18.14 million tonnes at 1.16% TREO and published an updated definitive feasibility study in March 2026.
No rare earth mine was in commercial production in Malawi as of April 2026. Kangankunde is expected to become the country’s first, with Songwe Hill’s final investment decision pending financing and a Nasdaq listing process. Both projects are Western-aligned — a significant distinction within the African rare earth development landscape.
Kangankunde — Under Construction and Targeting 2026 Production
Kangankunde is being developed by Lindian Resources (ASX: LIN) through its wholly owned operational entity, Rift Valley Resource Developments Limited (RVR). Lindian completed its acquisition of RVR in December 2025, making the final US$10m vendor payment ahead of the July 2026 contractual deadline. The project holds mining licence MML0290/22, with the licence area expanded from 900ha to 2,500ha by the Malawi Mining and Minerals Regulatory Authority.
The deposit is monazite-dominant and carbonatite-hosted, with low radionuclide content — a processing advantage that reduces radiological handling requirements relative to many competing deposits. The Stage 1 feasibility study, completed June 2024 and updated in December 2025 following process plant optimisation, delivered an NPV of A$1.72 billion — a 45% uplift on the original DFS figure. Throughput was increased from 60 t/hr to 75 t/hr, lifting the Stage 1 production target to 20,000 t/year of monazite concentrate at 55% TREO grade, while holding capital cost within 10% of the original DFS.
The board took a final investment decision in August 2025, supported by an oversubscribed A$91.5m institutional placement. A further A$100m oversubscribed placement completed in early April 2026, confirming a fully debt-free pathway to first production. Iluka Resources (ASX: ILU) has provided a A$20m construction loan and holds a 15-year offtake agreement covering 90,000 tonnes of monazite concentrate, destined for Iluka’s Eneabba rare earth refinery in Western Australia. Downstream, the concentrate is planned to be refined into mixed rare earth carbonate via a Kazakhstan-based processing pathway through SARECO.
Design and construction is being managed by Obsideo Consulting, which has prior experience commissioning the Gakara rare earths processing plant in Burundi. Civil construction is contracted to Mota-Engil, with mining on an owner-operator basis using a Komatsu fleet including a D155AX dozer, PC300/PC600 excavators, WA380/WA480 loaders, five HM400 dump trucks, and a Sandvik Pantera drill rig.
Construction milestones as of late April 2026: mine stripping commenced February 2026; the first production blast took place in April 2026 per master schedule; grid power energisation (ESCOM connection) is targeted for July 2026; first ore feed and first monazite concentrate are targeted for November 2026. The site has recorded over 500,000 LTI-free work hours. Stage 1 carries a 45-year mine life, with expansion potential the company describes as extending beyond 200 years.
Stage 2 resource definition drilling is underway using two diamond core rigs and one RC rig, with assay results targeted for end-May 2026 and an updated resource model by end-June 2026. The Stage 2 case targets 100,000 t/year of monazite concentrate at 4 Mtpa throughput. A senior US government delegation visited the site in early 2026 to assess Kangankunde’s potential role in national security and energy transition supply chains; no binding commitment has been confirmed. For context on dysprosium and terbium market pricing that Kangankunde’s output will enter, see the relevant price tracker pages.
Songwe Hill — EU Strategic Project and Nasdaq Listing
Songwe Hill is being developed by Mkango Resources (AIM/TSX-V: MKA) through its subsidiary Lancaster Exploration. Full company detail is available in the Mkango Resources company profile. At project level, Songwe Hill holds mineral reserves of 18.14 million tonnes at 1.16% TREO, containing 210,984 tonnes of TREO. The updated DFS, published 19 March 2026, puts mine capital expenditure at approximately $325.5m (C$343.92m).
Production targets 5,954 t/year TREO for the first five full years, including 1,953 t/year of NdPr oxides and 56 t/year of combined dysprosium and terbium oxides, delivered as mixed rare earth carbonate grading 55% TREO. That MREC is intended to feed a proposed rare earth separation plant at Puławy, Poland, for which a pre-feasibility study was completed in March 2026 at an initial capital cost of approximately $212m. The European Union designated Songwe Hill a Strategic Project under the Critical Raw Materials Act in June 2025 — one of a limited number of non-EU projects to receive that designation.
A Mining Development Agreement was signed with the Government of Malawi in July 2024. The US International Development Finance Corporation signed a $4.6m financing agreement with Mkango in September 2025; a potential $100m DFC loan is under consideration but not confirmed. Mkango is pursuing a Nasdaq listing via SPAC merger with Crown PropTech Acquisitions, with a definitive business combination agreement signed July 2025 and a draft Form F-4 filed with the SEC in February 2026; listing under tickers MKAR/MKARW remains subject to SEC review and shareholder approvals. FID has not yet been taken and is contingent on completing the financing and listing process. For neodymium price context relevant to Songwe Hill’s NdPr production case, see the price tracker.
Malawi Rare Earth and the Western Supply Chain
Both Kangankunde and Songwe Hill are explicitly Western-aligned by offtake, financing, and regulatory designation. This positions Malawi differently from several neighbouring jurisdictions: at Tanzania’s Ngualla project, output is committed to Chinese buyer Shenghe Resources under an existing offtake structure, a contrast examined in the Tanzania rare earth country page. At Kangankunde, the Iluka offtake connects Malawian ore directly to Australian refining infrastructure at Eneabba. At Songwe Hill, EU Strategic Project designation and the Puławy processing plant integrate Malawi into European critical minerals supply chains.
The Malawi government has reinforced this downstream orientation through Executive Order No. 2 of 2025, which bans the export of unprocessed minerals and mandates in-country beneficiation, with a National Mining Corporation established to oversee compliance. The government projects $500m per year in revenue from properly managed development of Kangankunde and the Kasiya graphite/rutile project — material for a country where mining currently contributes under 1% of GDP. For broader context on government-industry partnerships shaping Western supply chains, see rare earth companies and government partnerships.
Kangankunde and Songwe Hill also appear among the projects tracked in analyses of top Western rare earth supply chain projects. Infrastructure remains a sector-wide constraint: grid power connection at Kangankunde is underway via ESCOM; paved roads connect urban centres to within 12km of Songwe Hill; and Blantyre provides an international airport and railhead as the country’s commercial hub. The South Africa rare earth and Mozambique rare earth pages cover the wider southern African context. Supply chain risk factors applicable across the region are assessed in the top 10 rare earth supply chain risks.
Malawi Rare Earth Outlook
If Kangankunde delivers first monazite concentrate on its November 2026 target, Malawi will become Africa’s most significant rare earth producer by output since Burundi’s Gakara plant — built by the same D&C contractor, Obsideo. The Stage 2 drilling programme, with results due by end-May 2026, will determine whether the 100,000 t/year expansion case is economically viable and could substantially raise Kangankunde’s long-term production profile.
For Songwe Hill, FID is the critical remaining milestone. The Nasdaq listing process introduces a timeline dependency that is outside Mkango’s sole control; SEC review and shareholder approvals must complete before the capital structure needed for FID is in place. Benchmark Mineral Intelligence’s projection — that Kangankunde and Songwe Hill combined will account for approximately 30% of Africa’s rare earth output by decade end — assumes both projects reach production. That outcome remains contingent on execution at Kangankunde and financing completion at Songwe Hill. Kangankunde’s resource of 261 million tonnes is among the top rare earth deposits globally by size and grade.
This article is for informational purposes only and does not constitute investment advice.
Does Malawi have rare earth deposits?
Yes. Malawi hosts two carbonatite-hosted rare earth deposits at advanced development stage. Kangankunde holds a resource of 261 million tonnes at 2.14% TREO — one of the largest deposits outside China. Songwe Hill holds mineral reserves of 18.14 million tonnes at 1.16% TREO. Benchmark Mineral Intelligence projects the two projects combined will supply approximately 30% of Africa’s total rare earth output by the end of the decade.
When will Malawi start producing rare earths?
Kangankunde, developed by Lindian Resources (ASX: LIN), is targeting first monazite concentrate in November 2026. The final investment decision was taken in August 2025, mine stripping commenced February 2026, and 740 personnel were on site as of April 2026. No rare earth mine was in commercial production in Malawi as of April 2026.
Who is developing the Kangankunde rare earth project?
Kangankunde is developed by Lindian Resources (ASX: LIN) through its wholly owned subsidiary Rift Valley Resource Developments Limited. Iluka Resources (ASX: ILU) holds a 15-year offtake agreement for 90,000 tonnes of monazite concentrate and has provided a A$20m construction loan. Obsideo Consulting is the design and construction contractor.
What is Songwe Hill’s current development status?
Mkango Resources (AIM/TSX-V: MKA) published an updated definitive feasibility study for Songwe Hill on 19 March 2026, with mine capex of approximately $325.5m. The project holds EU Strategic Project status under the Critical Raw Materials Act (June 2025). The US DFC signed a $4.6m financing agreement in September 2025. A Nasdaq listing via SPAC merger is in progress, and FID is pending completion of that process.
Why is Malawi important for Western rare earth supply chains?
Both of Malawi’s primary rare earth projects are Western-aligned by offtake and financing. Kangankunde’s output is committed to Iluka Resources’ Eneabba refinery in Australia; Songwe Hill holds EU Strategic Project status and a proposed downstream processing link to Poland. Neither project has committed offtake to Chinese buyers, in contrast to some competing African projects. The Malawi government has also mandated in-country beneficiation via Executive Order No. 2 of 2025.
