Lindian Takes Full Control of Kazakhstan Rare Earths Facility

Lindian Resources has secured 100% ownership of the SARECO mixed rare earths carbonate (MREC) processing facility in Stepnogorsk, Kazakhstan, after acquiring the remaining 49% stake. The transaction strengthens Lindian’s position in downstream rare earths processing and provides the company with greater control over its planned production strategy.

The acquisition covers the operational hydrometallurgical processing plant, an additional 15,500 square meters of warehouse space and related infrastructure. Lindian will pay the seller up to US$20 million in cash, while RA Group will receive up to US$22 million in Lindian equity. The equity consideration consists of US$15 million in fully paid ordinary shares and US$7 million in performance rights, based on a deemed issue price of $0.775 per share.

SARECO is a commercially operational mixed rare earths carbonate facility located outside China and provides Lindian with an established platform for downstream processing. The company believes the acquisition offers a capital-efficient route to producing MREC while providing land and infrastructure for potential future expansion.

Lindian Executive Chairman Robert Martin said full ownership of SARECO represents the strongest outcome for the company. He also highlighted growing interest from customers and strategic partners across the United States, Europe and Japan.

Technical due diligence has further strengthened Lindian’s confidence in the facility’s condition and processing capabilities. Independent testwork conducted by the Australian Nuclear Science and Technology Organisation (ANSTO) in July validated the downstream processing route from Kangankunde concentrate to specification-grade mixed rare earths carbonate.

The testwork achieved 98% neodymium-praseodymium extraction and 96% total rare earth element extraction, supporting the technical viability of the proposed processing flowsheet.

Lindian plans to begin processing at SARECO during the December quarter, broadly matching the expected start of production at its Kangankunde project in Malawi. The company is also assessing alternative feedstock sources in Kazakhstan to provide greater flexibility during the initial processing phase.

Lindian expects to process approximately 12,500 tonnes per year of Kangankunde monazite concentrate at SARECO. The facility also benefits from nearby sulphuric acid supply. The adjacent Stepnogorsk Sulphuric Acid Plant currently produces about 180,000 tonnes per year and is expanding capacity toward 360,000 tonnes per year.

The acquisition gives Lindian greater control over its rare earths value chain and could support a more integrated path from concentrate production to downstream MREC output.

Impact on Products and ChemAnalyst-Tracked Chemical Commodity Prices

Lindian’s full ownership of SARECO could accelerate downstream production of mixed rare earths carbonate, particularly neodymium and praseodymium compounds, by providing dedicated processing capacity for Kangankunde concentrate. Greater processing integration may improve supply reliability and reduce dependence on third-party facilities. For chemical commodities tracked by ChemAnalyst, the move could create moderate upward pressure on prices of rare earth chemicals, neodymium compounds, praseodymium compounds and related specialty inorganic chemicals if additional demand emerges from magnets, electronics and clean-energy applications. However, the immediate price impact is expected to remain limited because commercial-scale output is still developing and broader global supply-demand conditions will remain the primary price driver.