Lindian adds major refiner to Kangankunde customer base

30,000-Tonne Offtake Adds Commercial Cover Before Production

Lindian Resources Limited (ASX:LIN) has secured a binding term sheet for 30,000 dry metric tonnes of monazite concentrate from its Kangankunde rare earths project in Malawi, strengthening its contracted sales position before first production. The arrangement covers 10,000dmt during Stage 1 and a further 20,000dmt per year during Stage 2.

The buyer is described only as a major global rare earths refining group with established chloride and solvent extraction operations. Lindian has not disclosed its identity, the expected revenue value or the specific pricing formula beyond saying it will be linked to the Asian Metals Index, adjusted by payability factors and including freight and insurance.

January Shipments Depend on Production and Final Contracts

The first container is planned to leave Nacala Port in January 2027, followed by monthly deliveries of about 850dmt. The term sheet sets an initial one-year Stage 1 volume and a five-year Stage 2 period, but deliveries remain conditional on execution of the full-form offtake and purchase agreements, Kangankunde producing concentrate, and the receipt of required consents, licences and approvals.

The timing places commercial execution immediately after Lindian’s targeted December production milestone. The company recently reported that Kangankunde was entering commissioning through equipment testing and export preparations, creating a clear operational test between the announced production target and the planned first shipment.

Stage 1 Capacity Is Allocated Across Three Supply Routes

“Lindian Project & Office Locations”

Lindian says the new term sheet means its Stage 1 concentrate capacity is fully allocated between external offtake partners and internal processing at its SARECO facility in Kazakhstan. Its portfolio now includes the unnamed international refiner, Iluka Resources in Australia and Carester in France, alongside approximately 4,000dmt per year reserved for SARECO.

The company’s Stage 2 allocation has reached 45,000dmt per year. That figure includes the new buyer’s 20,000dmt and up to 25,000dmt covered by Iluka’s right of first refusal. Lindian has also said it is continuing discussions with potential counterparties in North America, Europe and Asia for concentrate and downstream products, including mixed rare earths carbonate and SEGH.

Market-Linked Pricing Leaves Revenue Exposure Open

The pricing mechanism covers neodymium, praseodymium, dysprosium, terbium, cerium, lanthanum, samarium, europium, gadolinium and yttrium, with magnetic rare earth oxides expected to represent most of the concentrate’s product revenue. Payment is to be secured through a commercial bank letter of credit issued before shipment.

That structure provides a market-linked framework rather than a disclosed fixed-price contract, so the eventual revenue outcome will depend on reference prices, payability and delivered volumes. The term sheet also requires an average concentrate grade of 54% total rare earth oxides, with a 52% minimum, while Stage 2 remains subject to regulatory conditions, available quotas and operational performance.