Lindian Resources Secures Heavy Rare Earths Supply Deal for SARECO
Synopsis
Lindian Resources locks in a no-cash deal for heavy rare earths from Kazakhstan, strengthening feedstock supply for its SARECO processing plant.
Key Highlights
- Lindian Resources has acquired an exclusive option to take 13,389 tonnes of heavy rare earths feedstock from Kazakhstan.
- Additionally, the agreement provides Lindian with an option to assess up to another 15,000 – 20,000 tonnes of material.
- No upfront cash payment for exclusivity, or the option to purchase.
- The feedstock will underpin Lindian’s 100%-owned SARECO rare earths processing plant.
Lindian Secures Access to Kazakh Inventory via New Deal
Lindian Resources has been granted an exclusive option to purchase 13,389 tonnes of heavy rare earths feed, comprising dysprosium, terbium and yttrium from the Aktau Stockpile located in Kazakhstan. More than 7,500 tonnes of the material is already ready for transport, while the remaining balance will need to be dried before being sent on to the company’s SARECO facility.
Under the agreement, Lindian also has 12 months of exclusive rights to assess a further 15,000-20,000 tonnes of near-surface material. It is also worthy of note that the deal does not require any cash up-front, whether it be for the exclusivity or option to purchase the material.
Materials composition testing is now in progress, with Lindian evaluating new opportunities for rare earths products, of which Essar would also be a part. Rail logistics forms are already well established between the port in Aktau and the plant in Stepnogorsk.
What This Means for Investors
In addition to its Kangankunde project in Malawi, which is focused on neodymium and praseodymium, the Kazakhstan stockpile provides Lindian with an in-country feed source for its 100%-owned SARECO rare earth processing plant.
The Aktau Stockpile has yet to have a resource or reserve defined, but its potential economic viability awaits assay and testwork results which are currently underway. This would further help diversify Lindian’s position in the critical minerals space, with the tests able to confirm a new source of revenue from high-value heavy rare earths if successful.
The company retains flexibility in potentially using both Aktau and Kangankunde as SARECO supply sources, although each still requires permissions and successful testwork.
Dysprosium and terbium are critical rare earths for permanent magnets with high performance and yttrium is associated in importance to aerospace, electronics and defence applications, he noted. Those elements would extend Lindian’s position along the rare earth value chain and Komur said meaningful exposure to them was desired.
What’s Next for Lindian
Lindian is conducting sampling and metallurgical testwork at the Aktau site and is expecting results in the coming months. A positive outcome from the tests and both regulatory approvals would allow feeding of material to its SARECO plant prior to supply commencing at Kangankunde.
In the medium-term, Lindian is looking to expand SARECO into a multi-feed rare earths processing hub that serves light and heavy rare earth markets. Stage 1 development and feasibility work at Kangankunde is also progressing, with first production expected in late 2026.
Source: Mootley Fools
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
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