Estrella Targets 500 Million Tonnes of Limestone Sales with Indonesian Partner

Strategic Partnership Unlocks Southeast Asian Limestone Market

Estrella Resources Limited (ASX: ESR) has taken a significant step toward commercialising its limestone assets in Timor-Leste by entering a Master Agreement with PT Raka Energi Mandiri (REM), a well-established Indonesian mining services company. This partnership grants REM exclusive rights to market and purchase limestone mined from Estrella’s concessions, setting an ambitious sales target of up to 500 million dry metric tonnes over a five-year period.

The agreement is structured to align incentives closely, with REM eligible to receive up to 500 million unlisted share options in Estrella, exercisable at A$0.05 each, contingent on achieving the sales milestones. This performance-based arrangement underscores the confidence both parties have in the commercial potential of the limestone deposits.

Market Opportunity and Environmental Relevance

Indonesia’s booming nickel mining industry, driven by the global electric vehicle revolution, has created a growing demand for limestone, particularly as an acid neutralisation agent in nickel refining. Estrella’s limestone, rich in calcite and with high neutralisation value, is well positioned to meet this demand. Beyond industrial uses in cement, glass, and ceramics, limestone’s environmental applications in remediation and water treatment add further strategic value.

Estrella’s Managing Director Chris Daws highlighted the transformational nature of the deal, noting that partnering with REM provides a strong foothold in Southeast Asia’s expanding market. The collaboration aims not only to capitalise on limestone sales but also to contribute to cleaner mining practices in the region.

Milestones and Regulatory Pathway

The agreement is subject to several key development milestones, including Estrella securing a JORC-compliant mineral resource of at least 30 million tonnes by September 2025, completing a positive scoping study by November 2025, and obtaining all necessary mining and export permits by the end of 2025. These conditions are critical to progressing to a definitive Offtake Agreement and commencing shipments.

Estrella has already begun community consultations and environmental permitting processes, with plans to leverage existing port infrastructure in Timor-Leste for export logistics. The company is also actively engaging with the Timor-Leste government to ensure regulatory alignment and timely approvals.

Balancing Aspirations with Realities

While the sales targets are ambitious, Estrella cautions that these are aspirational marketing goals rather than guaranteed production forecasts. The company acknowledges the uncertainties inherent in exploration, permitting, and market conditions. Nonetheless, the partnership with REM and the structured incentives provide a clear commercial pathway and potential value uplift for shareholders.

As Estrella advances through these milestones, the deal could position the company as a leading limestone supplier in a region where demand is set to grow alongside industrialisation and environmental regulation.