Perth – September 07, 2026 -- Lindian Resources Limited (ASX: LIN) has signed a Technology and Engineering Services Agreement and a long-term binding Offtake Agreement with Carester SAS to develop an 8,000 tonne-per-annum rare earth oxide separation facility in Stepnogorsk, Kazakhstan.
Carester and Tetra Tech Coffey to complete DFS by Q4 2026
Carester, a global rare earth processing specialist, will work with Tetra Tech Coffey to advance a Definitive Feasibility Study for the solvent extraction and oxide separation plant, targeted for completion by the fourth quarter of 2026.
Offtake deal locks in 70% of heavy rare earth output for up to 20 years
The binding offtake agreement runs an initial 10 years with two five-year extension options. Carester will purchase 70% of Lindian's Mixed Heavy Rare Earths compound (SEGH) production and holds a right of first refusal over 70% of Mixed Heavy Rare Earths Carbonate (MHREC) output from SARECO. Feedstock will supply Carester's Caremag Refinery in Lacq, France, a joint venture with the Japan Organization for Metals and Energy Security (JOGMEC) and Iwatani Corporation, backed by €216 million in French and Japanese government funding and targeting approximately 15% of global dysprosium and terbium oxide production.
Pricing tied to government floor prices amid wide market divergence
Payment terms will link to the Carester Realised Price and any government floor price set in France, Europe, the US or Japan for magnet rare earth oxides and yttrium. Western forecasts put dysprosium at US$541/kg, terbium at US$1,988/kg and yttrium at US$383/kg, against current AMI spot prices of US$249/kg, US$1,127/kg and roughly US$30/kg respectively.
Kazakhstan's Ministry of Industry and Construction commits support
The Ministry of Industry and Construction has designated the project strategically important to the country's downstream rare earth ambitions and pledged support for its development. The Stepnogorsk industrial site offers existing power, gas, water, rail and sulphuric acid infrastructure, plus two warehouses totaling roughly 15,500 square meters secured through the SARECO transaction.
Facility to be funded internally from Kangankunde and SARECO cash flows
Lindian plans to fund the SX facility using cash flows from Kangankunde and SARECO operations, with first production expected in Q4 2026, alongside financial year-end cash at bank and undrawn Nico facilities totaling A$125 million. The plant is designed at roughly 1.5 times SARECO's capacity to accommodate third-party feedstock from additional Kazakhstan sources under evaluation.
Kangankunde stage 1 set for November commissioning
Executive Chairman Robert Martin said Kangankunde stage 1 remains on track for commissioning in November 2026, with SARECO preventative maintenance underway ahead of full commissioning in October. He added that Kangankunde stage 2 DFS and the oxide facility DFS are both due in December 2026, positioning Lindian among a small group of vertically integrated mine-to-separated-oxide producers globally.
Lindian will host an investor webcast on September 3, 2026, at 2:00pm Sydney time to present the Carester partnership details.