Perth – September 09, 2026 -- Lindian Resources Limited (ASX: LIN) has signed a binding long-term offtake agreement and a technology and engineering services deal with France's Carester SAS to develop an 8,000-tonne-per-year rare earth oxide separation facility in Stepnogorsk, Kazakhstan.
Carester locks in 70% of heavy rare earth output for up to 20 years
Under the agreement, Carester will purchase 70% of Lindian's mixed heavy rare earth compound (SEGH) production and holds a right of first refusal on 70% of mixed heavy rare earth carbonate (MHREC) output from Lindian's SARECO facility. The deal runs an initial 10 years with two five-year extension options, with volumes destined for the Caremag refinery in Lacq, France.
Definitive feasibility study targets Q4 2026 completion
Carester and Tetra Tech Coffey will jointly conduct a definitive feasibility study for the new solvent extraction and oxide separation (SX) facility, which will produce NdPr oxide and magnetic-grade SEGH carbonate. The DFS is due for completion by the end of 2026, alongside a separate DFS for Kangankunde phase 2.
Pricing tied to Caremag output backed by €216 million in state funding
Payment terms for MHREC and SEGH are linked to the Carester Realised Price and any government-set floor prices in France, Europe, the US or Japan. The Caremag refinery is a joint venture between JOGMEC, Iwatani Corporation and Carester, backed by €216 million in French and Japanese funding, and targets roughly 15% of global dysprosium and terbium oxide production.
Western price forecasts diverge sharply from current spot rates
Western forecasts put dysprosium at $541/kg, terbium at $1,988/kg and yttrium at $383/kg, against current AMI spot prices of $249/kg, $1,127/kg and roughly $30/kg respectively.
Kazakhstan brownfield site offers existing power, rail and reagent infrastructure
The Stepnogorsk industrial complex includes established electricity, gas, water, rail and sulphuric acid supply, plus two warehouses totalling roughly 15,500 square metres acquired as part of the SARECO transaction. Kazakhstan's Ministry of Industry and Construction has pledged support for the project, citing its strategic importance to the country's downstream rare earth ambitions.
Facility to be internally funded via Kangankunde and SARECO cash flows
Lindian plans to fund the SX facility from operating cash flows at Kangankunde and SARECO, both expected to reach first production in the fourth quarter of 2026, supplemented by year-end cash balances and undrawn Nico facilities worth A$125 million. Kangankunde phase 1 is on track for commissioning in November 2026, with SARECO full commissioning targeted for October 2026.
Executive Chairman Robert Martin said the agreement builds on Lindian's acquisition of 100% of the SARECO MREC facility, giving the company a processing platform spanning mixed concentrate, mixed carbonate and, eventually, separated oxides. Carester president Frédéric Carencotte said the partnership secures long-term MHREC and SEGH feedstock security for the French plant.
The SX facility, designed at roughly 1.5 times the scale of the SARECO plant, is intended to also process third-party compatible MREC as Lindian evaluates additional rare earth feedstock sources in Kazakhstan.