Lindian Resources (ASX:LIN) announced the execution of a binding term sheet to acquire 100% of an existing mixed rare earths carbonate processing facility located in Stepnogorsk, Kazakhstan.
The acquisition is structured through an incorporated joint venture, Lindian-RA JV, in which Lindian holds a 51% stake alongside local partner RA-Group (49%).
The facility, previously operated by a joint venture between Japan’s Sumitomo Corporation and Kazatomprom, will be acquired for a total purchase price of US$15 million.
According to the announcement, this represents a cost saving compared to the estimated US$500m required to construct a new facility.
The transaction transforms Lindian's business model "from concentrate only production to high value MREC production attracting premium payabilities with significantly enhanced economics."
The facility is expected to be fully operational by Q4 2026, utilising feedstock from Lindian's Kangankunde Rare Earths Project.
The company noted that the Stepnogorsk location provides advantageous access to low-cost power, water, sulphuric acid, and skilled labour.
Furthermore, Lindian will "retain operational oversight and exclusive marketing rights for all MREC product produced."