#Australia #Perth #Lindian Resources #SARECO #Hydromet Facility

Lindian Resources Secures Full Ownership of SARECO Hydromet Facility

Lindian Resources Limited, trading on the ASX under the ticker LIN, has reached a significant milestone by acquiring the remaining 49% ownership stake in the hydrometallurgical processing facility operated by SARECO in Stepnogorsk, Kazakhstan. This acquisition enhances Lindian's strategic position in the rare earths sector, providing complete operational control and access to all production outputs from the plant.

Strategic Importance of the Acquisition

The acquisition was completed at a total cash price of $20 million, marking a clear strategic move to establish Lindian as a dominant player in rare earth processing outside of China. Previously, SARECO was jointly operated by the Sumitomo Corporation and Kazatomprom, making this fully owned facility the only commercial-scale MREC processing plant of its kind beyond Chinese borders. The importance of a diverse supply chain in the rare earth market cannot be overstated, and this acquisition effectively positions Lindian to meet the growing global demand from industries in the USA, France, and Japan.

Operational and Market Advantages

With this acquisition, Lindian is set to directly benefit from:

• - Enhanced revenue opportunities: Full ownership allows for the potential to increase sales of higher-value MREC products.
• - Operational Control: Lindian retains operational oversight, allowing for improved efficiency and productivity.
• - Vertical Integration: The move enables a more integrated 'mine-to-MREC' strategy, enhancing profitability.

Following a detailed due diligence process encompassing technical, legal, tax, and environmental evaluations, Lindian is now equipped to proceed with commissioning the SARECO plant for rare earth processing, anticipated to start in the fourth quarter of 2026. This is in alignment with the commencement of production from Lindian's Kangankunde rare earth project.

Financial Backing and Future Prospects

Lindian has successfully secured $100 million AUD in institutional funding, ensuring it has the financial resources necessary for this acquisition and enabling it to achieve cash flows from the Kangankunde concentrate and the MREC products in the near future. In comparison, launching a new CLP project in this industry could require investment exceeding $500 million AUD and entail several years for approvals and development, highlighting the financial efficiency of this acquisition.

Customer Interest and Market Demand

There is considerable interest in the production outputs from SARECO, reflected by strong inquiries from major end-users and strategic partners globally. This underscores the critical role that diversified and Western supply chains will play for rare earth elements, particularly in high-demand sectors.

Conclusion

As Lindian Resources embarks on this new chapter with full ownership of the SARECO hydromet facility, it signals a solid step towards not only increasing its market share but also contributing significantly to the supply of rare earth elements outside of traditional markets. With a clear trajectory for operational commencement and robust financial backing, Lindian is poised for growth and success in the rapidly evolving rare earth landscape.