Lindian Locks in Exclusive Option on 13,389t Heavy Rare Earths Stockpile for SARECO
Key Takeaways
- Lindian executed a Stockpile Access and Option Agreement on 31 August 2026, securing an irrevocable exclusive option over 13,389 tonnes of previously extracted Aktau TMO material — with 7,549 tonnes already prepared for transport — at no upfront cash cost.
- A further 15,000–20,000 tonnes of State-owned Additional TMO is subject to exclusive evaluation rights, bringing total potential feedstock access to approximately 28,389–33,389 tonnes.
- The Aktau material targets dysprosium, terbium, and yttrium — heavy rare earths where ex-China production from Lynas and MP Materials combined totals less than 100 tonnes against a global DyTb market of approximately 3,455 tonnes.
- The Aktau–Stepnogorsk rail corridor was previously used to supply SARECO historically, meaning logistics are established rather than theoretical, and the material may be compatible with SARECO's existing flowsheet.
- Lindian is fully funded with A$191.5 million raised across two placements, Kangankunde Stage 1 construction is well advanced targeting Q4 2026 first production, and Aktau testwork results are expected in the coming months as a near-term catalyst.
Lindian secures heavy rare earths feedstock option for its 100%-owned SARECO facility
Lindian Resources (ASX: LIN) has executed a Stockpile Access and Option Agreement with Summit Atom Rare Earth Company LLP on 31 August 2026, securing an exclusive pathway to heavy rare earths feedstock for its 100%-owned SARECO Mixed Rare Earth Carbonate facility in Stepnogorsk, Kazakhstan. The transaction grants Lindian an exclusive option over 13,389 tonnes of previously extracted material, with exclusive rights to evaluate and potentially acquire a further 15,000–20,000 tonnes, bringing total potential access to approximately 28,389–33,389 tonnes. Critically, Lindian paid no upfront cash consideration for the exclusivity and option grant. This builds on Lindian’s move to 100% ownership of SARECO, announced on 10 August 2026.
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Inside the Aktau stockpile agreement
The agreement creates two distinct access pathways, and the distinction between what has been contracted versus what remains subject to evaluation is material.
The 13,389-tonne Existing TMO (technogenic mineral formations) parcel is under an irrevocable, exclusive option. Of this volume, 7,549 tonnes has been identified by Summit as prepared for transport to Stepnogorsk, with the remaining 5,840 tonnes currently drying prior to transport. Delivery arrangements, loading logistics, and the transfer of title and risk will be documented in definitive acquisition arrangements.
The 15,000–20,000-tonne Additional TMO presently belongs to the State and is not included in the option. Lindian holds the exclusive right to require Summit to pursue Subsoil Use Rights for this material. If those rights are obtained, Lindian may elect for Summit to extract and sell the material to Lindian, or — subject to required approvals and transferability — transfer the relevant Subsoil Use Rights to Lindian or its nominee.
One critical detail: the purchase price and all other material terms for the Existing TMO must be agreed in writing and documented in a definitive sale and purchase agreement before the option can be exercised. No purchase price has been disclosed.
| Term | Detail |
|---|---|
| Parties | Silkway Metals LLP (Lindian subsidiary) / Summit Atom Rare Earth Company LLP |
| Existing TMO | 13,389t — 7,549t prepared for transport, 5,840t drying |
| Additional TMO | ~15,000–20,000t, State-owned, not included in option |
| Exclusivity Period | 12 months |
| Consideration | No upfront cash |
| Exercise Condition | Definitive SPA required (purchase price and material terms must be agreed) |
| Governing Law | Republic of Kazakhstan |
The initial 13,389t parcel
- 7,549 tonnes identified by Summit as prepared for transport
- 5,840 tonnes currently drying prior to transport
- Delivery, title, and risk transfer to be documented in definitive acquisition arrangements
Zac Komur, Executive Director
“Aktau is strategically important because it was historically used as feedstock for SARECO, providing Lindian with the opportunity to re-establish an in-country rare earth feed source for the facility. We have contracted an exclusive option to acquire 13,389 tonnes of previously extracted material, with more than 7,500 tonnes already prepared for transport, and we have secured exclusive access to evaluate a further approximately 15,000 to 20,000 tonnes without paying upfront consideration for those additional rights.”
Why heavy rare earths matter — the Dy, Tb, Y investment angle
Dysprosium (Dy), terbium (Tb), and yttrium (Y) are heavy rare earth elements, and their supply concentration creates a strategic opportunity that most ASX-listed rare earths plays cannot access.
Dy and Tb improve coercivity and resistance to demagnetisation at elevated temperatures in high-performance permanent magnets. These characteristics are critical in defence systems, aerospace applications, drones, electric vehicle drivetrains, robotics, and advanced industrial motors. Yttrium is widely used in defence, aerospace components, thermal barrier coatings, lasers, electronics, and advanced ceramics.
Here is the supply concentration angle: ex-China production of Dy and Tb is dominated by two producers. Lynas Rare Earths and MP Materials combined produce less than 100 tonnes of Dy and Tb, compared to a total global DyTb market of approximately 3,455 tonnes. Western supply exposure to this segment is minimal. If Lindian confirms an economic Dy-Tb-Y assemblage at Aktau, it would establish near-term exposure to a concentrated, high-value market segment where Western supply remains constrained.
The pricing divergence tells you where the market opportunity sits.
| Element | Western Forecast Price | Current AMI Spot Price |
|---|---|---|
| Dysprosium | US$541/kg | US$249/kg |
| Terbium | US$1,988/kg | US$1,127/kg |
| Yttrium | US$383/kg | ~US$10/kg |
The divergence between forecast and current spot pricing for Dy and Tb reflects a market structure where long-term supply concerns are priced into forward curves, but short-term spot pricing remains depressed. Yttrium’s pricing gap is particularly pronounced, with forecast prices of US$383/kg compared to current spot of approximately US$10/kg.
Confirmation of an economic assemblage of Dy-Tb-Y at Aktau would give Lindian exposure to a potential Mixed Heavy Rare Earths Carbonate (MHREC) product — a product type subject to ongoing testwork. This would complement Kangankunde’s NdPr monazite concentrate, broadening Lindian’s exposure across both light and heavy rare earth markets.
Building an integrated NdPr + DyTb + Y value chain
Kangankunde gives Lindian exposure to neodymium and praseodymium (NdPr) — the light rare earths that dominate permanent magnet demand. Aktau, if testwork confirms recoverable Dy, Tb, and Y, provides exposure to the heavy rare earths that improve magnet performance in high-temperature, high-stress applications.
The combination creates exposure across both light and heavy rare earth markets, with potential blending opportunities that enhance product flexibility. This is where the SARECO processing strategy becomes material. Lindian is developing SARECO as a flexible, multi-feed downstream processing platform, capable of handling multiple feedstock types.
Aktau could provide a Kazakhstan feed route that is independent of Kangankunde delivery timing. That gives Lindian potential optionality around first feed and supports earlier SARECO utilisation, subject to satisfactory testwork and approvals.
The logistics are established. Both Aktau and Stepnogorsk are connected to the Kazakhstan Temir Zholy (KTZ) national rail network. The Aktau–Stepnogorsk rail corridor was previously used to transport Aktau feedstock to SARECO during the facility’s historical operating period. This is a return to a previously used route, not the establishment of a new logistics concept.
SARECO was established by Kazatomprom and Sumitomo Corporation to recover rare earth elements from uranium-derived residues, with the Stepnogorsk facility commissioned in 2012. Aktau material was supplied to SARECO historically, making it directly relevant to Lindian’s evaluation. Subject to confirmation through historical records and metallurgical testwork, the material may be compatible with SARECO’s existing flowsheet and infrastructure.
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What happens next
Testwork is underway to assess and confirm the rare earth composition, distribution, mineralogy, and processing suitability of the Aktau stockpile. Initial results are expected in the coming months.
Lindian has a 12-month exclusivity window over the broader stockpile, during which it can evaluate the material and pursue acquisition terms. The sequencing is flexible: Aktau TMO could be processed ahead of, alongside, or independently from Kangankunde concentrate deliveries, subject to satisfactory testwork and approvals.
Summit and Lindian anticipate that SARECO may continue to process TMO on Lindian’s behalf under a leaseback-style arrangement until Lindian’s Kazakh subsidiary obtains the licences and permits required to carry out its own processing activities. The terms of this arrangement have not yet been finalised.
The bigger picture for Lindian
- Kangankunde Stage 1 — construction is well advanced, with first production targeted for Q4 2026.
- Fully funded position — following a A$91.5 million placement and a further A$100 million raising, Lindian is fully funded to deliver Stage 1 development.
- Stage 2 Definitive Feasibility Study — progressing, targeting a significant expansion in production capacity.
- Aktau testwork results — a near-term value catalyst, with initial results expected in the coming months.
No Mineral Resource or Ore Reserve has been defined for the Aktau Stockpile. The presence, grade, metallurgical recovery, or economic viability of any heavy rare earth mineralisation has not yet been established. Any decision to acquire and process the Stockpile will be subject to the results of Lindian’s evaluation, agreement of final acquisition terms, and receipt of required regulatory approvals.
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