Lindian Resources Secures Sulphuric Acid Supply Amid Ban

Lindian Resources has secured a long-term, cost-effective supply of sulphuric acid from Kazakhstan's state-backed Stepnogorsk sulphuric acid plant (SSAP) for its 51% owned Sareco mixed rare earths concentrate facility. This agreement comes ahead of a significant impending ban on sulphuric acid exports from China, which is set to remove approximately 4.65 million tonnes from the global market. The SSAP currently has a production capacity of 180,000 tonnes per annum but is undergoing expansion to double that capacity, which positions Lindian advantageously in the face of rising global prices for sulphuric acid.

The new supply arrangement is not only strategically timed but also provides Lindian with a substantial cost benefit, as current prices in Kazakhstan are considerably lower than those in other markets, offering a buffer against potential volatility. With the support of competitive pricing and regional availability, Lindian can stabilize its downstream strategy, crucial for maintaining reagent supply for their rare earth processing operations. This strategic move reinforces local sourcing advantages and reduces dependency on external suppliers amidst significant market shifts.