Perth company raises the stakes in Malawi police probe into Chinese trespassing pair
GPS data is being analysed as police investigate links between one of China’s biggest rare earths players and two men detained for trespass at an Australian-backed mining project in Malawi.
Police in Malawi have been asked to investigate potential links between a giant Chinese rare earths player and a group of men accused of illegally taking geological samples and collecting other data at a mining project controlled by Perth-based Lindian Resources.
Analysis of GPS devices seized from two Chinese nationals and their local guides has added weight to allegations they were targeting valuable rare earths deposits Lindian aims to bring into production next year.
Sources close to the case said the GPS data showed the Chinese pair, who were accompanied by two Malawian geologists, were not on Lindian’s lease by mistake when they were detained and charged with criminal trespass.
It is understood police are looking at potential links between the men and China Northern Rare Earth Group, a major player in the supply of materials essential in the defence, aviation, robotics and renewals industries.
Lindian alleges the Chinese pair and their Malawi associates were caught red-handed taking geological samples and knew exactly where they were when spotted by the company’s security staff last Thursday.
Malawi authorities and ASX-listed Lindian have run the risk of a major diplomatic incident with China by pressing charges against the men amid heightened global tensions over the supply of rare earths and other critical minerals.
The Chinese pair were due to face court in Malawi on Tuesday after being released on bail and having their passports confiscated.
Lindian issued a statement to the ASX on Tuesday confirming an exclusive report in The Australian on the incident at the Kangankunde rare earths project and the charges against the Chinese nationals.
Malawi has stepped up its response and put a police district commander in charge of the investigation.
An incident report viewed by The Australian states that the two Chinese gave their names as Wang Dasheng, who said he was the managing director of the Sino Sky Quarry Company based in Blantyre, and Mr Liang, who said he was a mechanic working for the same company.
The Chinese group told security staff they were on their way to a site outside the Lindian project but had to turn back because of the road conditions.
The Lindian security staff were dubious about the explanation – the men had driven past no entry signs to reach the remote location – and detained the Chinese and their guides for more questioning before turning them over to local police.
The incident report indicates police held the men for 24 hours before they were released on bail.
The report noted that a colleague who was photographed visiting the pair while they were in custody was wearing a Baosteel-labelled jacket.
Baosteel, now known as China Northern Rare Earth Group, helped establish China’s global dominance in rare earths processing and supply, and maintains vast influence in the market and in pricing.
Lindian’s site construction manager, Daniel Britz, reportedly pleaded with police not to release the men on bail after they were charged with criminal trespass.
The incident report said Mr Britz warned police the accused men could leave the country. The Lindian team said those fears were based on Chinese nationals who were arrested and charged under similar circumstances last year flying out of Malawi before they faced court.
Lindian staff also raised the discovery of the GPS devices and the potential link to China Northern Rare Earth Group with police.
It is understood there have been three incidents where Chinese nationals were found at Kangankunde. In the first instance, Lindian, which now employs 14 full-time security guards, didn’t involve the police.
Lindian executive chairman Rob Martin on Tuesday thanked staff on the ground and police for their diligence in maintaining a “safe and secure mine site”.
“The company takes site safety and security extremely seriously, especially with preconstruction works well under way, to find foreign nationals on an active unmapped haul road allegedly taking geological samples is concerning specifically with the current geopolitical nature of the rare earths market.
“We will continue to work with the authorities to ensure that the company’s sovereignty and security are maintained to the highest standards.”
Mr Martin stepped up from chairman to executive chairman at Lindian on March 17.
The move came after former chief executive Alwyn Vorster and the company parted ways in February.
Resources Minister Madeleine King declined to comment on the incident, which comes as China moves to cut off supply of rare earths and permanent magnets to the US and other Western nations.
Beijing’s move to weaponise rare earths is in response to US President Donald Trump hitting China with massive tariffs as part of an escalating trade war.
Both US and Australia are working on plans to establish a critical minerals strategic reserve to include rare earths.
To join the conversation, please log in. Don't have an account? Register
Join the conversation, you are commenting as Logout