Iluka, Lindian Resources shares climb on rare earths supply partnership
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More news: Shares in mineral sands miner Iluka Resources and small cap Lindian Resources lifted in afternoon trade after the two companies signed a long-term rare earth concentrate supply deal.
Under the agreement, Lindian will supply 6,000 tonnes of rare earth concentrate to Iluka annually over a 15-year period.
At 12:38pm AEST, Iluka shares had lifted 1.5% to $5.87 while Lindian’s shares had surged 41% to 13.3 cents.
Iluka Resources partners with Lindian Resources on rare earths supply deal
The news: Mineral sands miner Iluka Resources has struck an agreement with ASX small cap Lindian Resources for the long-term supply of rare earth concentrate.
The numbers: Under the agreement, Lindian will supply Iluka with 6,000 tonnes of rare earth concentrate per year from its Kangankunde mine in Malawi, over a 15-year term.
Iluka said the material will be complementary feedstock for its Eneabba rare earths refinery in Western Australia and will represent around 10% of Eneabba's capacity.
To support Lindian's development of Kangankunde, Iluka has entered into a USD20 million ($30.9 million) loan facility agreement, with a five-year term.
The context: Iluka said the agreement is part of the company's focus on securing complementary Australian and international feedstocks for Eneabba, both from within its own portfolio and from third-party suppliers.
Eneabba is set to be Australia's first fully integrated rare earths refinery and will produce separated light and heavy rare earth oxides. The refinery is currently under construction in partnership with the federal government and scheduled for commissioning in 2027.
What they said: "Our agreement with Lindian is a further step towards delivering on the significant industry building opportunities presented by Iluka's development of the Eneabba rare earths refinery," said Iluka's managing director Tom O'Leary.
"Against a backdrop of heightened emphasis on diversifying the supply of rare earths globally, this is an example of Iluka catalysing a new mine into production as its Australian refining customer."
The source: ASX
