Acquisition Overview
Lindian Resources Limited (ASX:LIN) announced that it has acquired the remaining 49% equity interest in the SARECO Mixed Rare Earths Carbonate (MREC) hydrometallurgical processing facility located in Stepnogorsk, Kazakhstan, thereby attaining 100% ownership of the plant.
Transaction Details
The acquisition was executed via a Sale and Purchase Agreement at a total purchase price of $20 million on a 100% basis. The transaction encompasses two commercial processing facilities with a combined floor area of 15,500 square metres together with additional land parcels.
Historical Context
The facility was previously owned and operated by Sumitomo Corporation and Kazatomprom. In March 2026, Lindian disclosed an intention to acquire a 51% stake in the plant; the current purchase completes full ownership after comprehensive due‑diligence covering technical, legal, tax and environmental aspects.
Operational Timeline
The SARECO facility is slated to commence processing operations in the fourth quarter of 2026, aligning with the first production run from Lindian’s Kangankunde Rare Earths Project. Metallurgical testing demonstrated a 96% overall NdPr recovery from Kangankunde concentrate to MREC product, a figure validated by the Australian Nuclear Science and Technology Organisation (ANSTO).
Funding and Financial Structure
Lindian has recently completed an A$100 million institutional capital raising, which the company states will fund the SARECO acquisition and support the initiation of cash‑flows from both Kangankunde concentrate sales and MREC production.
Executive Commentary
Executive Chairman Robert Martin explained that the decision to increase ownership followed due‑diligence confirmation of the facility’s potential. He highlighted inbound interest from customers and strategic counterparties across the United States, Europe and Japan.
Strategic Significance
Full ownership provides Lindian with both operational and marketing control over the MREC product output. The company noted that constructing a comparable new facility would require capital expenditures exceeding A$500 million and would be subject to multi‑year permitting and development timelines.