Lindian Resources (ASX:LIN) has secured exclusive access to 13,389 tonnes of heavy rare earth (HREE) stockpile material in Kazakhstan that could potentially feed its SARECO processing facility.
The company executed a stockpile access and option agreement with Summit Atom Rare Earth (SARECO) for the Aktau stockpile, which contains dysprosium, terbium, and yttrium. Of the initial parcel, 7,549 tonnes have been prepared for transport, with the balance currently drying.
Lindian also holds exclusive rights to evaluate an additional 15,000 to 20,000 tonnes of material without upfront cash consideration. The agreement provides 12 months of exclusivity to assess the material’s suitability for processing through the SARECO mixed rare earth carbonate facility in Stepnogorsk.
Executive Director Zac Komur says the Aktau material was historically used as feedstock for SARECO, providing an opportunity to re-establish an in-country rare earth feed source.
The stockpile provides exposure to HREEs, with Western forecasts for dysprosium, terbium, and yttrium at US$541/kg ($755/kg), US$1,988/kg, and US$383/kg, respectively. Current spot prices sit at approximately US$249/kg, US$1,127/kg, and US$10/kg.
“What makes this particularly interesting is the potential rare earth distribution,” Komur says.
“Kangankunde gives Lindian strong exposure to neodymium and praseodymium. Aktau provides us with the opportunity to establish whether we can add dysprosium, terbium, and yttrium into the product suite through SARECO.”
The material would complement Lindian’s Kangankunde Rare Earths Project in Malawi, which targets first production in the December quarter.
SARECO was established by Kazatomprom and Sumitomo (TYO:8053) in 2012 to recover rare earth elements from uranium-derived residues. Lindian acquired 100% ownership of the facility earlier this month (August).
The Aktau-Stepnogorsk transport corridor benefits from established rail infrastructure through the Kazakhstan Temir Zholy national network.
Lindian is conducting sampling and metallurgical testwork to assess the material’s composition and processing suitability. The company says initial results are expected in coming months.
Lindian Resources is an Australian critical minerals producer with rare earths and bauxite assets in Malawi and Guinea.
Write to Paula Fabe at Mining.com.au
Images: Lindian Resources
