Lindian and Carester Plan Kazakhstan Oxide Facility

Lindian Resources has executed technology, engineering services and long-term offtake agreements with Carester for an 8,000 tonne per annum rare earth oxide separation facility at Stepnogorsk, Kazakhstan. Carester and Tetra Tech will advance the definitive feasibility study, which is targeted for completion in the fourth quarter of 2026. The agreements include an initial 10-year offtake term, with two five-year extension options, covering 70% of Lindian’s mixed heavy rare earths compound production. The project supports Lindian’s mine-to-oxide plan, linking Kangankunde monazite concentrate and SARECO processing with separated rare earth oxide products.

Stepnogorsk Study Advances

The proposed solvent extraction and oxide separation facility is designed for 8,000tpa of rare earth oxide nameplate capacity. It is planned for the Stepnogorsk industrial complex, where Lindian identified existing power, gas, water, rail and reagent infrastructure, skilled labour and local sulphuric acid supply as potential brownfield capital and operating cost advantages.

The company said the project has been recognised as strategically important by Kazakhstan’s Ministry of Industry and Construction. Lindian also secured two warehouses totalling about 15,500 square metres, plus additional buildings, structures and land parcels, through its SARECO transaction.

Robert Martin, Executive Chairman at Lindian Resources, said:

“The agreement with Carester represents another significant step in Lindian's strategy to move further downstream to expand our markets and to capture more of the value from the rare earths that we produce. Following our acquisition of 100% of the SARECO MREC facility, we now have an established processing platform from which we can produce mixed rare earth concentrate and mixed rare earth carbonates as we move towards the realisation of producing separated oxides.

“Carester brings both world-class separation expertise and a long-term route to market for our heavy rare earth production. Its Caremag facility is backed by €216 million of French and Japanese funding and is targeting approximately 15% of global dysprosium and terbium oxide production, demonstrating the strategic importance of the supply chain that we are building.

“We have stage 1 of Kangankunde on track for commissioning in November this year, our SARECO preventative maintenance programs are now under way for full commissioning in October this year, Kangankunde stage 2 DFS and the DFS for the oxide facility both also due in December this year which in turn is positioning Lindian to be one of the few truly vertically integrated mine to separated oxides producers globally”.

Long Term Supply Arrangement

Under the binding offtake agreement, Carester will purchase 70% of SEGH production and holds a right of first refusal over 70% of mixed heavy rare earth carbonate production from SARECO. The agreement has an initial 10-year term and includes two further five-year extension options.

Heavy rare earth material is intended for Carester’s Caremag Refinery in Lacq, France. The refinery is a joint venture development between the Japan Organization for Metals and Energy Security, Iwatani Corporation and Carester. Lindian said pricing will be linked to the Carester Realised Price and any government floor price in France, Europe, the US or Japan for magnet rare earth oxides and yttrium produced at Caremag.

Frédéric Carencotte, President at Carester, said:

“This strategic partnership marks another step in Carester's strong commitment to supporting the development of a secure and sustainable diversified rare earth industry. Lindian's established SARECO processing platform in Kazakhstan, combined with our separation technology will provide a long-term MHREC and SEGH feedstock security for our French plant and demonstrates how close industrial cooperation can reinforce the critical raw materials value chain. The Aktau and HREE feedstock processed at SARECO will provide critical feed for production of DyTb oxides for high-performance permanent magnets”.

Figure 2: Integrated mine-to-oxide value chain.

Mine To Oxide Platform

Lindian’s processing platform is intended to provide exposure to monazite concentrate, mixed rare earth carbonate, mixed heavy rare earths compound and separated magnet rare earth oxides, including neodymium, praseodymium, dysprosium, terbium and yttrium. The company is also evaluating additional rare earth feed sources in Kazakhstan to support utilisation and potential expansion of SARECO and the proposed separation facility.

The SX facility is designed to receive SARECO product liquor solution and compatible third-party mixed rare earth carbonate. Lindian said it expects to fund the facility internally through cash flows from Kangankunde and SARECO operations, with first production expected in the fourth quarter of 2026, alongside closing cash and undrawn Nico facilities of A$125 million.

Government Support In Kazakhstan

Kazakhstan’s Ministry of Industry and Construction has committed support for the project’s development, citing its role in the country’s rare earth production ambitions.

Ministry of Industry and Construction, Kazakhstan, stated:

“Lindian's Rare Earth Oxides Separation Project represents an important next stage in the development of rare earth production in Kazakhstan, creating additional value within the country by combining Carester's specialist rare earth separation expertise with Kazakhstan's established hydrometallurgical capabilities.

“The project has the potential to establish an important position for Kazakhstan in the global rare earth supply chain, connecting resources, processing capabilities and markets across the globe.

“The Rare Earth Oxides Separation Project will also bring Kazakhstan closer to its ambition of becoming a significant producer of permanent magnet materials, which are increasingly critical to artificial intelligence, robotics, e-mobility and renewable energy.

“Given the strategic significance of the project, the Ministry of Industry and Construction will provide the necessary support in Kazakhstan to facilitate its successful development.”

Next Development Milestones

The definitive feasibility study for the Stepnogorsk oxide separation facility is targeted for completion by the end of 2026. Lindian will host an investor webcast on 3 September 2026, where Robert Martin and directors Zac Komur and Teck Lim will present the Carester partnership, feasibility study, supply agreement and mine-to-oxide strategy.