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, creating a pathway from monazite concentrate to magnet-quality oxides.

The agreements support the development of an oxide separation facility in Kazakhstan, where Lindian is advancing a hydrometallurgical processing facility alongside Carester and Tetra Tech Coffey. Carester is currently progressing a definitive feasibility study for a planned 8,000 tonnes-per-year rare earths oxide solvent extraction and separation facility, with the study targeted for completion in the fourth quarter of 2026.

The offtake agreement between Lindian and Carester specifies a term of ten years with the option to extend it by five years twice, spanning up to 20 years.

The agreement covers both a mixed heavy rare earths compound and a right of first refusal for mixed heavy rare earths carbonate.

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.

Mixed heavy rare earths carbonate will be supplied from Lindian's processing facility in Kazakhstan, while 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.

"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," said Lindian executive chairperson Robert Martin. "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."