Lindian Resources (ASX:LIN) has executed a binding Offtake Term Sheet through its wholly owned Singapore subsidiary, Lindian Global Rare Earths Pte. Ltd, with a major rare earths refining group for 30,000 dry metric tonnes of Monazite Concentrate from the Kangankunde Rare Earths Project in Malawi, covering 10,000dmt per annum for Stage 1 and 20,000dmt per annum for Stage 2.

Key Points

  • Binding Offtake Term Sheet executed for 30,000dmt total — 10,000dmt per annum (Stage 1, one-year initial term commencing January 2027) and 20,000dmt per annum (Stage 2, five-year term)
  • First container sea freight from Nacala Port scheduled for January 2027, with monthly deliveries of Kangankunde Monazite Concentrate thereafter
  • Stage 2 offtake allocation now stands at 45,000dmt, including volumes under the new Term Sheet and Iluka Resources' right of first refusal
  • Pricing is linked to the Asian Metals Index, modified by a payability factor, with 100% of invoice to be settled via Commercial Bank Letter of Credit issued in advance of shipment
  • Approximately 4,000dmt per annum of Stage 1 Kangankunde Monazite Concentrate capacity retained for internal processing at SARECO

Binding Offtake Term Sheet Key Terms

Under the Binding Term Sheet, Lindian Global Rare Earths Pte. Ltd, or its nominated affiliate, will act as seller, with the buyer described as a major global refining group with well-established rare earth chloride and solvent extraction operations. The product specification requires an average of 54% Total Rare Earth Oxide concentrate, with a minimum of 52%. Pricing formulas incorporate ten rare earth elements: neodymium, praseodymium, dysprosium, terbium, cerium, lanthanum, samarium, europium, gadolinium and yttrium. Payment terms require 100% of each invoice to be settled via a customary Commercial Bank Letter of Credit, to be issued in advance of shipment.

Diversified Global Offtake Portfolio

With the new Term Sheet, Lindian holds offtake arrangements across multiple jurisdictions. Iluka Resources (ASX:ILU) has a supply agreement for 6,000dmt per annum of Kangankunde Concentrate over approximately 15 years, with a floor price, destined for the Eneabba Rare Earths Refinery in Western Australia. Carester SAS in France will purchase 70% of SARECO's mixed heavy rare earths compound production and holds a right of first refusal over 70% of SARECO's Mixed Heavy Rare Earths Carbonate for an initial 10 years with two five-year extension options, supplying the Caremag refinery in Lacq, France, backed by €216 million in French and Japanese funding.

Stage 1 Capacity Allocation and Kangankunde Project

According to the filing, Kangankunde Stage 1 Concentrate capacity is now fully allocated between offtake partners and Lindian's own SARECO Mixed Rare Earths Carbonate facility. The Kangankunde Monazite Concentrate is characterised in the filing as a 55% Total Rare Earth Oxide grade product with no deleterious elements and low levels of radionuclides, specifically uranium and thorium. The filing states Lindian continues to engage with potential customers and strategic counterparties in the United States, Europe and Asia, including Japan, for further offtake arrangements covering both Monazite Concentrate and SARECO MREC products.