ASX-listed Lindian Resources has signed a technology and engineering services agreement, as well as a long-term binding offtake agreement, with global rare earth processing and separation company Carester.

Lindian is supporting the development of an oxide separation facility together with Carester and Tetra Tech Coffey.

Carester is advancing a definitive feasibility study for the planned 8 000 t/y rare earths oxide nameplate capacity solvent extraction and oxide separation facility in Kazakhstan, with the study targeted for completion in the fourth quarter.

The offtake agreement between Lindian and Carester specifies a term of ten years with the option to extend it by five years twice to span 20 years. The agreement is for both a mixed heavy rare earths compound and right of first refusal for mixed heavy rare earths carbonate (MHREC).

Heavy rare earths products will be supplied to the Caremag refinery in Lacq, France, which has secured significant French and Japanese government funding.

The Caremag refinery is a joint venture development between the Japan Organization for Metals and Energy Security, Iwatani Corporation and Carester.

MHREC will be supplied from Lindian’s processing facility in Kazakhstan. Mixed heavy rare earths compound product will be produced alongside separated neodymium and praseodymium oxides.

Carester will purchase 70% of the mixed rare earths compound product and have right of first refusal over 70% of MHREC production from Lindian's facility.

Lindian says the agreements with Carester create a pathway from premium monazite concentrate from the Kangankunde project – the company's flagship mining project, in Malawi – through the hydrometallurgical processing facility in Kazakhstan into magnet-quality oxides and carbonate.

"The agreement with Carester represents another significant step in our strategy to move further downstream and expand our markets, capturing more value from the rare earths we produce. Following our acquisition of the Sareco facility in Kazakhstan, we now have an established processing platform from which we can produce mixed rare earth concentrate and mixed rare earth carbonates as we move towards the realisation of producing separated oxides," concludes Lindian executive chairperson Robert Martin.