Lindian Resources secures heavy rare earths supply deal for SARECO facility

Lindian Resources has secured an option over 13,389 tonnes of Kazakh heavy rare earths, supporting its SARECO facility expansion.

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The Lindian Resources Ltd (ASX: LIN) share price is in focus today after the company announced it has secured an exclusive option to acquire 13,389 tonnes of heavy rare earths feedstock in Kazakhstan, with the potential to evaluate an additional 15,000 to 20,000 tonnes—all without upfront cash outlay.

A hand holding a lump of rare earths material against a blue sky.

Image source: Getty Images

What did Lindian Resources report?

  • Exclusive option to acquire 13,389 tonnes of heavy rare earths (dysprosium, terbium, yttrium) from the Aktau Stockpile.
  • Over 7,500 tonnes prepared for transport, balance to be dried before shipping to the SARECO facility.
  • 12-month period of exclusive rights to evaluate an additional 15,000–20,000 tonnes of above-ground material.
  • No upfront cash payment for exclusivity or for the option to acquire.
  • Testing underway to assess composition; potential to broaden rare earth product suite.
  • Established rail logistics between Aktau and Stepnogorsk plant.

What else do investors need to know?

Lindian's access to a large stockpile in Kazakhstan gives it an in-country feed source for its 100%-owned SARECO rare earth processing plant. This complements the company's Kangankunde project in Malawi, which is focused on neodymium and praseodymium.

There's no resource or reserve yet defined for the Aktau Stockpile, and economic viability will depend on ongoing assay and testwork results. However, these tests could potentially confirm a new revenue stream from high-value heavy rare earths, helping Lindian diversify and strengthen its presence in the critical minerals market.

The company currently enjoys a flexible arrangement and may, subject to permissions and successful testwork, move forward with both Aktau and Kangankunde as sources of supply for SARECO.

What did Lindian Resources management say?

Lindian Resources' Executive Director Zac Komur, said:

Aktau is strategically important because it was historically used as feedstock for SARECO, providing Lindian with the opportunity to re-establish an in-country rare earth feed source for the facility. Dy and Tb are among the most strategically important rare earths used in high-performance permanent magnets, while yttrium has important applications across aerospace, electronics and defence. Establishing meaningful exposure to these elements would materially broaden Lindian's position across the rare earth value chain.

What's next for Lindian Resources?

Lindian is undertaking sampling and metallurgical testwork at the Aktau site, with results expected in coming months. Subject to positive tests and regulatory approvals, the company could ramp up feed to its SARECO plant even before Kangankunde supply commences.

In the medium term, Lindian's strategy is to position SARECO as a flexible, multi-feed rare earths processing platform, serving end-markets with both light and heavy rare earth products. The company is also advancing Stage 1 development and feasibility work at Kangankunde, with first production targeted for late 2026.

Lindian Resources share price snapshot

Over the past 12 months, Lindian Resources shares have surged more than 200%, far outpacing the All Ordinaries Index (ASX: XAO).

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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