Lindian secures in-country acid supply as global sulphuric market tightens
Lindian Resources Ltd (ASX:LIN, OTC:LINIF) has updated investors on sulphuric acid supply arrangements for its SARECO mixed rare earth carbonate facility in Kazakhstan, following reports China will impose a near-total ban on sulphuric acid exports from May 1, potentially removing around 4.65 million tonnes of supply from global markets.
The SARECO facility sources sulphuric acid from the nearby Stepnogorsk Sulphuric Acid Plant (SSAP), a state-backed producer within Kazakhstan’s Samruk-Kazyna sovereign wealth fund.
SSAP currently produces about 180,000 tonnes per annum, with expansion underway to lift capacity to around 360,000tpa, providing a growing in-country reagent source for the operation.
The close proximity of the plant to SARECO is expected to offer logistical advantages and support continuity of supply, reducing reliance on imported acid.
This positioning is increasingly relevant as global sulphuric acid markets tighten, with supply constraints expected to impact import-dependent regions such as Chile, Indonesia, Africa and the Middle East.
Lindian noted that access to domestic supply may help limit exposure to price volatility and supply disruptions, with Kazakhstan pricing estimated at US$100–130 per tonne, below typical Western market levels.
“Access to sulphuric acid supply in Kazakhstan is an important part of Lindian’s downstream strategy. With a state-backed supplier and competitive pricing, this supports reagent availability and cost stability. Testwork confirms strong recoveries using a conventional flowsheet, with acid consumption already in a competitive range and optimisation underway. This positions Lindian to deliver a scalable, low-cost downstream operation with reduced exposure to global supply risk,” Lindian executive director Zac Komur said.
Testwork highlights efficient acid use and strong recoveries
Metallurgical testwork conducted by ANSTO has demonstrated strong processing performance from Kangankunde monazite concentrate using a conventional sulphuric acid bake and leach flowsheet.
Results showed up to 94% total rare earth yield (TREY) and up to 97% neodymium-praseodymium (NdPr) recovery, with more than 90% rare earth dissolution occurring within the first hour.
Initial testwork also indicated relatively low sulphuric acid consumption of 1.2–1.4 tonnes per tonne of concentrate, with further optimisation underway to reduce reagent use while maintaining high recoveries.
The company said these results support a conventional and scalable processing pathway for producing high-grade mixed rare earth carbonate at SARECO. Notably, Lindian has secured an US$11.6 million (~A$16.6 million) equipment finance and working capital facility from Malawi-based NBS Bank Plc, adding further funding flexibility as construction advances at its flagship Kangankunde Rare Earths Project.
