Lindian Resources Ltd (ASX:LIN, OTC:LINIF) has secured exclusive access and an option to acquire 13,389 tonnes of previously extracted material that could provide heavy rare earth feedstock for its SARECO processing facility in Kazakhstan.
The agreement with Summit Atom Rare Earth Company LLP covers the Aktau stockpile, including 7,549 tonnes identified as ready for transportation to SARECO’s facility at Stepnogorsk and another 5,840 tonnes undergoing drying.
Lindian has also secured 12 months of exclusivity over a further 15,000 to 20,000 tonnes of unextracted material, creating a potential pathway to access between 28,389 and 33,389 tonnes in total.
No upfront cash consideration is payable for the exclusivity or option, although the purchase price and other material acquisition terms remain subject to negotiation and a definitive agreement.
Heavy rare earth potential
Lindian is assessing whether the Aktau material can support production of a mixed heavy rare earth carbonate containing dysprosium, terbium and yttrium.
These elements are used in high-performance permanent magnets and applications spanning defence systems, aerospace, drones, electric vehicle drivetrains, robotics, electronics and advanced industrial motors.
If confirmed through test work, the material would broaden Lindian’s exposure beyond the neodymium and praseodymium contained in concentrate from its Kangankunde Rare Earths Project in Malawi.
The company highlighted that dysprosium, terbium and yttrium have forecast prices of about US$541, US$1,988 and US$383 per kilogram, respectively, compared with current spot prices of around US$249, US$1,127 and US$10 per kilogram.
Potential early feed for SARECO
The Aktau material was historically supplied to SARECO, which was established by Kazatomprom and Sumitomo Corporation to recover rare earth elements from uranium-derived residues.
This history could make the material relevant to SARECO’s existing processing infrastructure, although compatibility, recoveries and economic viability must still be demonstrated.
Lindian executive director Zac Komur said Aktau could re-establish an in-country feed source for the facility while adding potential heavy rare earth exposure to the company’s portfolio.
“Aktau also has the potential to provide SARECO with a Kazakhstan feed route that is independent of the timing of Kangankunde deliveries,” he said.
The stockpile could consequently be processed before, alongside or independently of Kangankunde concentrate, subject to successful test work and regulatory approvals.
Existing rail infrastructure links Aktau and Stepnogorsk, with the route previously used to transport material to the processing facility.
Next steps
Lindian has begun sampling and metallurgical work to determine the stockpile’s rare earth distribution, mineralogy and suitability for processing through SARECO. Initial results are expected in the coming months.
The company will also evaluate technical, radiological and logistical requirements before deciding whether to exercise its option.
No mineral resource or ore reserve has been defined for the stockpile, and its grade, recovery characteristics and economic viability have not yet been established.