‘We don’t want to fight with China or anyone else’, says Lindian boss after Malawi incursion

Rare earths play Lindian Resources urges Chinese interests to come through the front door next time after two Chinese men were apprehended with soil samples inside its mining lease area.

Two Chinese nationals, left, were found at the Lindian Resources rare earths project in Malawi.

ASX-listed Lindian Resources has asked police to drop the charges against two Chinese nationals who were detained by security staff at the company’s rare earths project in Malawi.

The pair had their passports confiscated and were charged with criminal trespass after being detained at the Kangankunde rare earths project.

Lindian executive chairman Rob Martin said the company had decided against taking legal action after sending a sufficiently clear message through the arrests. That means the matter will not proceed to a court hearing as planned.

He urged the Chinese interests behind the incursion to make an approach directly in future if they wanted to engage with Lindian on the high-grade, low-impurity Kangankunde project.

“What happened was disappointing, but we don’t want to fight with anyone, whether it is the East or the West,” Mr Martin said.

“We want to take the higher ground and that’s why we are withdrawing the charges. We’re happy to talk to anybody and we’re doing that.

“But if people want to have a look at Kangankunde, come through the front door, come through the right channels.”

Lindian’s backdown comes after police were asked to investigate potential links between the men found at Kangankunde and the China Northern Rare Earth Group, a major player in the ­supply of materials essential in the defence, aviation, robotics and renewals industries.

The two Chinese nationals were detained by Lindian security staff last Thursday before being handed over to local police.

Analysis of GPS devices seized from the Chinese nationals and their local guides added weight to allegations they were gathering information about the rare earths deposit. They were accused of taking geological samples from inside the mining lease.

Lindian has also dropped ­charges against the two Malawian geologists who were with the Chinese pair.

The Australian government had opted not to comment on the incident that comes at a flash point in relations between the US and China over tariffs and rare earths supply. China, which dominates global supply of rare earths and permanent magnets – that contain heavy rare earths – has moved to cut off supply in the past fortnight.

The US is trying to play catch-up in Africa, where China is already a big investor in the mining sector.

The four men charged over the Easter break had been due to appear in court on Tuesday but the matter was pushed back, ahead of Lindian dropping the action.

Mr Martin said Lindian continued to take its sovereignty, safety and security extremely seriously.

It is understood there have been three site incursions involving Chinese nationals in the past year, and that on the second occasion the men were charged but left Malawi before facing court.

“We see this breach as disappointing but we harbour no ill will to those involved. The company simply believes it’s time is better spent on our current construction program,” Mr Martin said.

“Fortunately this situation has not impacted any of our ongoing discussions with various multi­national stakeholders from both the East and West. We remain committed to bringing the project online in 2026.

“We would also like to thank the Malawian authorities for their unconditional support during this situation.”

Lindian is promoting Kangankunde as one of the world’s biggest high-grade rare earths deposits and estimate it will cost just $US40m to bring the fully permitted project, about 90km north of the city of Blantyre, into production.

The first stage has a mine life of 45 years based on current ore resources, and Lindian is proposing low-cost dry processing given the low levels of thorium and uranium in the deposit.

If it is successful, there is every prospect the concentrate could be sent to China for processing into rare earths oxides.

Mr Martin spent the first week of March in Washington for talks about the future of the Kangankunde project.

The Albanese government inserted a “no-China” clause on rare earths sales when it stumped up an additional $400m to help West Australian company Iluka Resources complete Australia’s first fully integrated rare earths refinery in December.

The clause gave the government, which has tipped $1.65bn of taxpayer funding in total into the refinery, a say on offtake sales.

The government has also intervened to force investors with links to China off the register of Northern Minerals in a sign of the political sensitivity around critical minerals.

Originally published as ‘We don’t want to fight with China or anyone else’, says Lindian boss after Malawi incursion