Lindian Resources Signs 20-Year Rare Earths Offtake Deal With Carester
Synopsis
Lindian Resources secures a long-term offtake deal with Carester, advancing plans for a new oxide separation facility in Kazakhstan.
Key Highlights
- Lindian Resources has signed a binding offtake agreement with French rare earths specialist Carester, lasting up to 20 years.
- Carester will buy 70% of the heavy rare earth carbonate produced at Lindian’s SARECO facility in Kazakhstan.
- The deal also kicks off a feasibility study for a new oxide separation facility in Kazakhstan.
- Lindian says the new facility will be funded organically, without outside financing.
Long-Term Offtake Deal Secured
Lindian Resources has signed a binding strategic partnership with French rare earths specialist Carester, securing a long-term offtake agreement for its heavy rare earths production. The deal has an initial 10-year term, with options for two five-year extensions.
Under the agreement, Carester will purchase 70% of the mixed heavy rare earth carbonate produced at Lindian’s SARECO processing facility in Kazakhstan. This material will be supplied as feedstock to Carester’s Caremag refinery in Lacq, France, a joint venture between Carester, the Japan Organisation for Metals and Energy Security, and Iwatani Corporation. The French facility has already received significant government funding from both France and Japan.
Lindian Resources executive chairman Robert Martin said Carester brings both strong separation expertise and a long-term route to market for the company’s heavy rare earth production. He noted that Caremag is backed by $350 million in French and Japanese funding and aims to produce around 15% of global dysprosium and terbium oxide output, highlighting the importance of the supply chain Lindian is building.
New Oxide Separation Facility Planned
The agreement with Carester also sets in motion the next phase of Lindian’s downstream plans. The two companies will now proceed with a definitive feasibility study for a new solvent extraction and oxide separation facility at Stepnogorsk in Kazakhstan, with a planned capacity of 8,000 tonnes per year. The study is expected to be completed by the end of the year.
The proposed plant is designed to produce magnet-quality neodymium-praseodymium oxide at more than 99.5% purity, alongside the heavy rare earths destined for France.
Kangankunde Project Underpins Strategy
Lindian’s downstream strategy is supported by its Kangankunde rare earths project in Malawi, which holds a resource of 261 million tonnes at a grade of 2.19% total rare earth oxides. Construction of Stage 1 at Kangankunde is well underway and fully funded, following a $100 million institutional placement and additional local financing in Malawi.
First production of premium monazite concentrate from Kangankunde is expected later this year. The material will then be shipped to Lindian’s SARECO facility in Kazakhstan for processing ahead of final separation at the proposed new oxide plant.
Government Support and Funding Plans
The Kazakhstan Government’s Ministry of Industry and Construction has recognised the new separation plant as strategically important to the country’s downstream ambitions. Lindian said the facility will not require outside funding, and will instead be financed organically through cash flow from its Kangankunde and SARECO operations.
The move into separated oxides is expected to help Lindian capture more value from its resources. Dysprosium and terbium, the heavy rare earth elements to be sold to Carester, generally command significantly higher prices than concentrate products and are key materials used in high-performance magnets for electric vehicles and wind turbines.
With Kangankunde backed by a long-term offtake arrangement with Iluka Resources, and now a pathway to high-value separated oxides secured through Carester, Lindian is steadily building out the components of a significant rare earths production business.
Source: Sydney Morning Herald
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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