Lindian Resources (ASX: LIN) Moves to Full Ownership of SARECO Rare Earths Plant

Lindian Resources will acquire the remaining 49% of Kazakhstan’s SARECO processing facility, replacing its previously planned 51% joint-venture interest.

The transaction gives Lindian full operational control and exclusive marketing rights over mixed rare earth carbonate produced at SARECO. It also links the facility directly with Lindian’s Kangankunde rare earths development in Malawi.

Deal Structure and Cost

Lindian will pay the seller up to US$20 million in cash for the SARECO assets. Value-added tax is payable in addition.

RA Group will receive up to US$22 million in Lindian equity. This comprises US$15 million in ordinary shares and US$7 million in performance rights.

Each security has a deemed issue price of A$0.775. The performance rights are tied to one and two years of commercial production following completion.

The definitive sale and purchase agreement has been executed. The transaction also includes two warehouses covering about 15,500 square metres, plus additional land, buildings and associated assets.

Lindian initially proposed owning 51% through an incorporated joint venture announced in March. It decided to acquire the remaining interest after completing legal, tax, technical and environmental due diligence.

Existing Infrastructure Changes the Equation

SARECO was developed by Kazakhstan’s Kazatomprom and Japan’s Sumitomo. It retains cracking, leaching and precipitation circuits, along with laboratory, storage and logistics infrastructure.

The Stepnogorsk facility also has access to power, gas, water, reagents, skilled labour and rail. A nearby sulphuric acid plant provides an established domestic source of a key processing input.

Lindian said a comparable new processing facility would cost more than A$500 million. A greenfield development would also involve multi-year permitting, engineering, construction and commissioning.

Executive Chairman Robert Martin said: “SARECO gives Lindian a highly capital-efficient pathway into downstream rare earth processing, together with the land and infrastructure to support further expansion over time.”

Metallurgy Supports the Integrated Plan

Independent ANSTO testwork achieved approximately 96% overall neodymium-praseodymium recovery from Kangankunde concentrate into final mixed rare earth carbonate.

The testing recorded 98% neodymium-praseodymium extraction during sulphuric acid baking and water leaching. Carbonate precipitation recovered more than 99.9% of rare earths from purified solution.

ANSTO also certified the final product as exempt from radioactive transport and handling requirements under applicable IAEA standards. Kangankunde concentrate has received the same logistics classification.

These results support Lindian’s planned mine-to-processed-product supply chain. Full ownership means the company controls SARECO’s production, margins, marketing and future development decisions.

Fourth-Quarter Production Target

Lindian is targeting first processing at SARECO during the fourth quarter of 2026. That schedule aligns with planned first production from Kangankunde Stage 1.

About 12,500 tonnes of Kangankunde monazite concentrate per year is ultimately expected to feed SARECO. Lindian is also assessing Kazakhstan-based feedstock that could provide flexibility before Kangankunde ramps up.

The company recently completed a A$100 million institutional raising. It says this fully funds Kangankunde Stage 1 through first cash flow and advances SARECO into production.