en.Wedoany.com Reported - On August 10, Australia's Lindian Resources signed an asset purchase agreement to acquire 100% ownership of the SARECO mixed rare earth carbonate hydrometallurgical facility in Kazakhstan. The transaction structure has been adjusted from the previously planned March arrangement—where Lindian would hold 51% and RA Group 49%—to Lindian holding full ownership, with the company planning to commence rare earth processing in the fourth quarter of 2026.
Under the agreement, Lindian will pay the asset seller up to $20 million in cash and issue up to $22 million in company shares and performance rights to RA Group. Of this, $15 million in shares will be issued upon completion of registration of unencumbered title to the assets, while performance rights of $5 million and $2 million are tied to the plant achieving continuous commercial operation for one year and two years, respectively. The acquisition scope also includes two warehouses with a total area of approximately 15,500 square meters, ancillary buildings, and land.
The SARECO facility was previously constructed and operated through a partnership between Japan's Sumitomo Corporation and Kazakhstan's National Atomic Company Kazatomprom. Existing systems include concentrate roasting, leaching, impurity removal, and carbonate precipitation units, as well as a laboratory, reagent storage and transport, and product bagging facilities. The plant site features a dedicated railway spur line that can be used to receive concentrate, transport processing reagents, and ship out mixed rare earth carbonate products.
Once operational, the facility is expected to receive approximately 12,500 tonnes of monazite concentrate annually from Phase 1 of the Kangankunde rare earth project in Malawi. In verification tests completed by the Australian Nuclear Science and Technology Organisation, neodymium-praseodymium leaching recovery reached 98%, rare earth element leaching recovery reached 96%, and the overall neodymium-praseodymium recovery from concentrate to final mixed rare earth carbonate was approximately 96%; the final product's radioactivity levels are below international transport and handling regulatory limits.
Lindian previously completed an institutional financing of A$100 million, with funds to be used to advance Phase 1 construction at Kangankunde, the SARECO acquisition, and commissioning of facilities at both ends. At this stage, the transaction has completed legal, tax, technical, and environmental due diligence, and formal agreements have been signed. The transfer of assets remains subject to conditions such as corporate approvals, effectiveness of lease agreements, and title registration.
