Lindian acquires full control of MREC facility in Kazakhstan
ASX-listed Lindian Resources has announced the strategic full acquisition of the Sareco mixed rare earths carbonate (MREC) hydrometallurgical processing facility, in Kazakhstan, increasing its ownership from 51% to 100%.
The facility was previously owned and operated by Sumitomo Corporation and Kazatomprom, with the Sareco facility being one of few operational commercial-scale MREC processing facilities worldwide.
In line with Lindian's first production from the Kangankunde rare earths project, in Malawi, the company aims to start processing at the MREC facility in the fourth quarter. Lindian has already demonstrated the facility's metallurgical performance, with 96% overall neodymium and praseodymium recovery rates from Kangankunde concentrate to MREC.
There is, however, potential for earlier processing through possible in-country feedstock sources and stockpiles.
Having raised A$100-million in institutional capital raising endeavours, Lindian is fully funded to complete the $20-million Sareco acquisition and to reach first concentrate production at Kangankunde. Notably, a new processing facility would have had a capital cost of A$500-million and would have required multi-year permitting and development timelines.
The Sareco acquisition includes two warehouses totalling 15 500 m2 and further land and associated asset, which Lindian executive chairperson Robert Martin says provides substantial capacity for future expansion as Lindian progresses further down the rare earths value chain.
Moreover, Lindian says there is already strong interest from American, French and Japanese end-users for MREC produced from the Sareco facility.
"Sareco gives Lindian a highly capital-efficient pathway into downstream rare earth processing, together with the land and infrastructure to support further expansion over time. We have also been particularly encouraged by the strength of inbound interest from customers and strategic counterparties in the US, Europe and Japan. With Kangankunde approaching first production, Sareco targeting first production in the fourth quarter and the company being fully funded through to first cashflow, Lindian is exceptionally well-positioned to execute its integrated mine-to-MREC strategy," Martin concludes.
