Lindian Resources (ASX:LIN) targets first monazite concentrate shipments from January 2027 under a binding offtake term sheet covering 30,000 tonnes.
The company’s wholly owned Singapore subsidiary, Lindian Global Rare Earths, signed the deal with an unnamed rare earths refining group with established chloride and solvent extraction operations.
The term sheet covers concentrate from the Kangankunde Rare Earths Project in Malawi. Stage one calls for 10,000 dry metric tonnes (dmt) over an initial one-year term from January 2027, followed by stage two delivering 20,000dmt per annum over five years.
The first container will leave Nacala Port in January 2027, with monthly deliveries of 850dmt thereafter on a cost, insurance, and freight basis to a discharge port nominated by the buyer.
Pricing links to the Asian Metals Index, adjusted by a payability factor that increases with rare earth oxide prices across 10 elements: neodymium, praseodymium, dysprosium, terbium, cerium, lanthanum, samarium, europium, gadolinium, and yttrium. The buyer will pay 100% of each invoice via a commercial bank letter of credit issued before shipment.
Specifications require concentrate averaging 54% total rare earth oxide (TREO), with a 52% minimum.
Conditions precedent include execution of a full-form offtake agreement, delivery purchase contracts, concentrate production at Kangankunde, and third-party approvals.
Stage two remains subject to regulatory conditions, available quotas, and operational performance. Singapore law governs the term sheet.
Executive Chairman Robert Martin says the term sheet represents another significant milestone for Lindian.
“With high quality customers across multiple supply chains, we have established a truly global offtake portfolio ahead of first production in December,” Martin says.
The deal builds on existing agreements with Iluka Resources (ASX:ILU) for 6,000dmt per annum and France-based Carester for 70% of SARECO mixed heavy rare earths compound production.
Lindian retains 4,000dmt per annum of stage one concentrate for processing at its SARECO facility in Stepnogorsk, Kazakhstan.
Stage two offtake allocations total 45,000dmt per annum, including up to 25,000dmt under Iluka’s right of first refusal, while Lindian advances discussions with potential customers across the US, Europe, and Asia.
Construction at Kangankunde is well advanced, with first production scheduled for December alongside an ongoing stage two Definitive Feasibility Study.
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
Main image: Lindian Resources
