Estrella strikes mega limestone deal in Timor-Leste

West Australian

21-05-2025

Estrella Resources has struck a game-changing deal that could see up to a whopping 500 million tonnes of limestone shipped out of Timor-Leste over the next five years in a push by the company to supply South East Asia's booming industrial minerals market.
The company has signed a binding master agreement with Indonesian mining and energy services outfit PT Raka Energi Mandiri (REM), granting the latter exclusive marketing and off-take rights to Estrella's high-grade calcite-rich limestone from its vast Timor-Leste concessions.
Estrella is aiming to hit the ambitious 500Mt target within five years from first shipment. If achieved, it would trigger the issue of up to 500 million performance-based share options to REM exercisable at five cents each, subject to shareholder approval.
The companies have formed a joint venture, Estrella Murak Rai Timor Lda, in which Estrella holds a commanding 70 per cent and Timor-Leste's state-owned Murak Rai Timor owns the remaining 30 per cent. The joint venture company will scoop up 100 per cent of the proceeds from any limestone sales.
In a move management says is 'truly transformational,' the agreement gives REM the rights to secure buyers in Indonesia, where demand for limestone is skyrocketing thanks to its critical role in neutralising acid during nickel processing - particularly in Indonesia - and for other industrial uses.
The limestone sits at the top of the Baucau Formation, as a clean, coral-rich geological layer mapped across Estrella's 195-square-kilometre concession area. As it lies directly above the company's manganese targets, exploration is likely to be twice as efficient as both resources can be assessed during the same drilling campaigns.
Recent assays have confirmed the Baucau limestone as a premium calcite with minimal impurities, which will be ideal as a strong neutralising agent for use in cement, glass, agriculture and environmental remediation in nickel processing.
For the deal to be sealed, Estrella will have to first reach a few critical milestones in double-quick time. The company must define a JORC-compliant 500Mt limestone resource by the end of September this year, then complete a positive scoping study by November and finally lock in mining and export approvals before the year's end.
While ambitious, Estrella has already begun community consultations, land access negotiations and port development planning to get limestone on ships. It is also considering interim export through Timor's existing Com Port before developing a new facility.
REM, which already has boots on the ground across Indonesia's coal and power sectors, is bringing a well-renowned distribution network and environmental focus to the table. Estrella says this will be key to its plans for accessing Indonesia's nickel producers, which are under pressure to lower emissions in the electric vehicle supply chain.
South East Asia's calcite market is projected to soar from US$5 billion (A$7.8B) in 2023 to more than US$8.1B (A$12.7B) by 2032. With China tightening supply, the company appears well positioned to become a go-to regional source.
Meanwhile, Estrella is rapidly moving forward with plans for a maiden drilling campaign on its in-country Ira Miri, Sica and Lalena manganese prospects.
A track-mounted rig - recently shipped from Darwin - will hit the ground in the next week or two after final environmental approvals have been issued. It will be operated by Dili-based CoreSearch Minerals and Mining Services LDA.
The 13,000-metre drilling program has been split into 10,000m of reverse circulation drill holes followed by 3000m of diamond holes. A second round of drilling has also been booked in after results from the initial program have been analysed.
The ambitious plan to mine and sell limestone together with manganese from its leases may well transform Estrella's Timor-Leste play into a high-impact dual commodity opportunity, with limestone potentially taking centre stage in the company's next act.
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