Lindian Resources Ltd (ASX:LIN, OTC:LINIF) has finalized an agreement to acquire 100% ownership of the SARECO mixed rare earths carbonate (MREC) processing facility in Kazakhstan, securing complete operational and marketing control to bolster its integrated supply chain for the Kangankunde project in Malawi.
Strategic Consolidation of Rare Earths Assets
The decision to acquire the remaining 49% interest follows a comprehensive legal, tax, technical, and environmental due diligence process. By moving to full ownership, Lindian gains total control over future development decisions, exclusive marketing rights for all MREC produced at the site, and 100% of the project’s production margins.
Site layout of the SARECO MREC Facility, highlighting key installed infrastructure including the main processing plant, sulphuric acid storage and neutralisation facilities, MREC bagging and dispatch area, and dedicated rail spur for reagent delivery, Concentrate receival and MREC export.
Infrastructure and Operational Timeline
Located in Stepnogorsk, SARECO is a pre-established hydrometallurgical facility equipped with cracking, leaching, and precipitation circuits, alongside essential utilities and rail access. Lindian anticipates the first processing run at the facility to commence in the fourth quarter of 2026, aligning with the scheduled first production from its Kangankunde mine.
The acquisition also includes two additional warehouses spanning approximately 15,500 square meters, providing significant land and infrastructure capacity for potential future downstream processing expansions.
Existing processing infrastructure within the SARECO MREC Facility.
Financial Structure and Development Value
The transaction involves an asset purchase price of up to US$20 million in cash. Additionally, the RA Group will receive up to US$22 million in Lindian equity, consisting of US$15 million in ordinary shares and US$7 million in performance rights—contingent upon achieving specific commercial production milestones at SARECO.
Lindian highlighted the significant capital efficiency of this acquisition, noting that developing a comparable greenfield MREC facility would require over A$500 million in capital and years of permitting and construction. The facility was originally developed by Kazakhstan’s Kazatomprom and Sumitomo Corporation.
Technical Performance and Future Outlook
Independent test work by ANSTO has validated the facility’s efficacy, recording a 98% neodymium-praseodymium (NdPr) extraction rate during sulphuric acid baking and water leaching, with an overall recovery rate of 96%. Furthermore, the final MREC product has been certified as exempt from radioactive transport and handling requirements under IAEA standards.
Lindian plans to feed the facility with approximately 12,500 tonnes per annum of Stage 1 monazite concentrate from Kangankunde. To optimize the facility’s ramp-up, the company is also evaluating local Kazakh feedstock options that could allow for processing to begin before the Kangankunde output reaches full capacity.
Backed by a recent A$100 million institutional capital raise, Lindian reports that it is fully funded to complete the Kangankunde Stage 1 development and transition SARECO into active production by Q4 2026.