Highlights
- Lindian Resources (ASX: LIN) signed a Technology and Engineering Services Agreement and a 20-year Offtake Agreement with French rare earth separation specialist Carester SAS.
- The deal advances a feasibility study, targeted for completion in Q4 2026, for a new 8,000 tonne-per-year rare earth oxide separation facility in Stepnogorsk, Kazakhstan; the company is explicit that this capacity figure is not a production forecast.
- Output is earmarked for Carester’s Caremag Refinery in France, a joint venture backed by roughly €216 million in French and Japanese government funding, targeting about 15% of global dysprosium and terbium oxide production.
Lindian Resources Limited (ASX: LIN) reported on September 3, 2026 that it has executed a Technology and Engineering Services Agreement and a long-term, binding Offtake Agreement with Carester SAS, a French rare earth processing and separation specialist, covering the development of a new rare earth oxide separation facility. Together with engineering firm Tetra Tech Coffey, Carester will advance a Definitive Feasibility Study (DFS), a detailed engineering and economic study used to decide whether to proceed with construction, for the new facility at Stepnogorsk, Kazakhstan, targeted for completion in the fourth quarter of 2026.
What’s Being Built, and What the Numbers Actually Mean
The proposed facility uses solvent extraction, a chemical separation process, to split mixed rare earth material into individual oxide products, and carries a stated nameplate capacity of 8,000 tonnes per year of rare earth oxides (REO). Nameplate capacity describes what a facility is engineered to process at full output, not a prediction of what it will actually produce; the company’s own release states this figure is not a projection of the amount of minerals to be extracted from its projects, and points readers to its feasibility study dated July 1, 2024 for actual production targets. The DFS for this new facility, in other words, still needs to confirm whether and how the plant gets built at that scale.
The Offtake Structure
Lindian and Carester also signed an Offtake Agreement covering an initial 10-year term with two further five-year extension options, up to 20 years total. Under the deal, Carester will purchase 70% of the production of a mixed heavy rare earths compound called SEGH, and holds a right of first refusal over 70% of a related product called MHREC (Mixed Heavy Rare Earths Carbonate). Both products would be sourced from SARECO, Lindian’s hydrometallurgical processing facility in Kazakhstan. Pricing is linked to what the release calls the “Carester Realised Price,” tied to any government floor price that France, the broader European Union, the U.S., or Japan may set for magnet rare earth oxides and yttrium produced at Carester’s French facility, meaning Lindian’s realized pricing could be influenced by government policy decisions in those markets, not just open-market rates.
Where the Rare Earths Actually Go
Material supplied under this deal is destined for the Caremag Refinery in Lacq, France, a joint venture between the Japan Organization for Metals and Energy Security (JOGMEC), Iwatani Corporation, and Carester. The release states Caremag has secured roughly €216 million in French and Japanese government funding and is targeting approximately 15% of global dysprosium and terbium oxide production, two elements used heavily in the high-performance permanent magnets found in electric vehicle motors, wind turbines, and defense applications. This is why heavy rare earths carry outsized strategic and pricing significance despite being a small fraction of total rare earth output.
On pricing, the release cites Western analyst forecasts, from CRU and Adamas Intelligence, putting dysprosium, terbium, and yttrium prices at roughly US$541, US$1,988, and US$383 per kilogram respectively, compared to current spot prices on the Asian Metal Index of about US$249, US$1,127, and US$30 per kilogram. That’s a wide gap between where these metals trade today and where Western analysts expect government-backed supply chains like Caremag to eventually price them; it’s a forecast, not a current market reality, and the divergence itself reflects the strategic premium Western governments are willing to pay to build supply outside China.
The Bigger Picture: Mine to Oxide
Lindian frames this deal as the next step in a broader mine-to-oxide strategy: monazite concentrate from its Kangankunde project feeds into SARECO’s hydrometallurgical processing in Kazakhstan, which in turn would feed the proposed Stepnogorsk separation facility to produce magnet-quality NdPr (neodymium-praseodymium) oxide and SEGH carbonate. The company says it’s evaluating additional Kazakhstan rare earth feed sources to support future expansion, and that the Stepnogorsk site’s existing power, gas, water, rail, and reagent infrastructure could offer a lower-cost brownfield alternative to building a separation facility from scratch. Lindian says the new facility would be funded internally, from cash flow at Kangankunde and SARECO (both targeting first production in the fourth quarter of 2026), existing cash on hand, and an undrawn A$125 million credit facility, though that funding plan depends on those operations reaching production on the timelines the company has outlined.
Sources
Editorial Disclosure
This article is based on a press release issued by Lindian Resources Limited on September 3, 2026, distributed via PRNewswire. Securities discussed: Lindian Resources Limited (ASX: LIN). Carester SAS and the Caremag Refinery joint venture (including the Japan Organization for Metals and Energy Security and Iwatani Corporation) are referenced extensively in this article; Mining Markets Report has not verified their private ownership or funding structures beyond what is stated in the source release. Mining Markets Report has not received compensation from Lindian Resources, its management, investor relations representatives, or any third party for this coverage. No staff member or principal of Mining Markets Report holds a position in this security at the time of publication. The 8,000 tonne-per-year nameplate capacity figure cited in this article describes engineered processing capacity, not a production forecast, per the company’s own disclosure; readers seeking production targets should refer to the company’s feasibility study dated July 1, 2024. Forecast prices for dysprosium, terbium, and yttrium cited in this article originate from third-party research (CRU, Adamas Intelligence, and Petra estimates as cited by the company) and are forecasts, not current market prices; current spot prices from the Asian Metal Index are cited separately and should not be conflated with the forecasts. The proposed Definitive Feasibility Study has not been completed and there is no assurance the Stepnogorsk facility will be constructed as described. Statements regarding project financing, construction timelines, production commissioning, offtake volumes, and government funding or floor pricing are forward-looking and involve known and unknown risks; actual results may differ materially. References to these companies are for market context and analytical purposes only and do not constitute an investment recommendation. All securities carry investment risk including possible loss of capital. Coverage on Mining Markets Report is for informational and educational purposes only; Mining Markets Report is not a registered investment advisor. Readers should conduct their own due diligence and consult a qualified financial advisor before making investment decisions.
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