Posted on 07 Aug 2025
Australian critical minerals company Iluka Resources has signed a long-term offtake agreement for rare earth concentrates with compatriot Lindian Resources, the companies announced on Wednesday.
Under the 15-year deal, Iluka will buy 6,000 tonnes/year of rare earth concentrate from Lindian’s Kangankunde mine in Malawi for its Eneabba rare earths refinery in Western Australia, Kallanish understands.
Eneabba, which claims to be Australia’s first fully integrated rare earths refinery, will have a production capacity of up to 23,000 t/y of rare earth oxides. While the first production of the under-construction refinery was originally scheduled for 2025, it has been delayed to 2027.
“Construction of the refinery is progressing well, with concrete works advancing and equipment now arriving on site,” comments Iluka managing director Tom O'Leary. “In parallel, we are in active discussions with several potential feedstock suppliers.”
Last December, the Australian government granted a AUD 400 million ($257.2m) loan to Iluka to develop the Eneabba refinery, on top of an initial AUD 1.25 billion loan facility agreed in 2022.
Separately, Iluka has agreed to provide a $20m loan facility to support the Kangankunde mine’s development.
One of the world’s largest rare earths deposits, Kangankunde is expected to produce 15,300 t/y of concentrate in stage 1. Lindian is currently advancing the project’s financing discussions, aiming to begin stage 1 construction this year.
Lindian’s executive chairman, Robert Martin, calls the agreements a “pivotal milestone” for the company.
“The funding and offtake agreements represent a major de-risking milestone for stage 1 of our Kangankunde rare earths project, providing increased confidence for all our stakeholders by showing a clear pathway to production,” the executive adds.
Lindian’s shares were up 32.98% at the time of writing, while Iluka’s shares rose 0.17%.
The announcement comes as Australia considers establishing a price floor to support domestic critical minerals projects, including rare earths. Countries like Australia and the US have been ramping up efforts to build a domestic supply chain to counter China’s dominance.
Source:Kallanish
