Estrella’s Limestone Leap: Indonesian Deal Carves New Path in Timor-Leste
Estrella Resources (ASX: ESR) is taking a bold step beyond its manganese aspirations, unveiling a potentially transformative deal to market limestone from its Timor-Leste concessions. The company has inked a Master Agreement with PT Raka Energi Mandiri (REM), an Indonesian mining services firm with operational reach across East and Central Kalimantan and Maluku. REM will have exclusive marketing and offtake rights for up to 500 million dry metric tonnes of limestone over a five-year period. That figure, while eye-catching, is aspirational and subject to several significant preconditions.
While REM may not be familiar to most on the ASX radar, its track record in coal logistics and energy distribution in Indonesia positions it as a credible counterparty. The family-owned outfit is looking to diversify its portfolio, and Estrella’s high-purity limestone could provide a timely opportunity as Indonesia’s nickel refining industry seeks solutions to its environmental challenges. REM director Gregory Dhana N called the partnership a chance “to provide a cleaner, more environmentally friendly mining industry and better future for our children,” suggesting broader ambitions for collaboration between the two companies beyond limestone alone.
The limestone sits in the Baucau Formation, which overlays Estrella’s manganese targets in Timor-Leste—a geological stroke of luck that allows dual exploration for both commodities with a single drill programme. The company has already assayed nine samples of the limestone in Australia, with tests confirming a high calcite content, low impurities, and strong acid neutralisation potential. This makes it particularly suitable for use in nickel refining, where it acts as an acid neutralising agent, and could prove highly desirable in a region that’s now the world’s top producer of lateritic nickel.
“This is a truly transformational moment for Estrella and a major step forward in building a long-term commercial pathway,” said Estrella Managing Director Chris Daws. “Partnering with a well-connected local group like REM gives us a strong advantage in accessing the Southeast Asian market.”
Still, there’s a fair bit of groundwork to be done before the first shipment sails. Estrella must define a JORC-compliant resource of 500 million tonnes by 30 September 2025, complete a positive scoping study by November, and obtain all mining and export approvals by the end of the year. Subject to shareholder approval, REM will be rewarded with one unlisted share option—exercisable at $0.05—for every tonne it successfully facilitates in limestone sales. In theory, this could amount to 500 million options, though this is entirely contingent on achieving the sales target.
Estrella has also initiated discussions around port infrastructure to support the exports. While a dedicated facility is on the cards, the existing port of Com is being considered as a stopgap to expedite shipments once the resource is confirmed and approvals are in place. These early logistics moves underscore the company’s intent to fast-track development, though the timeline remains subject to the usual regulatory bottlenecks and community consultations.
The strategic significance of this deal isn’t lost on Estrella’s joint venture partner in Timor-Leste, Murak Rai Timor Lda, which holds a 30% stake in the limestone tenements. President Jose Goncalves said the agreement is a welcome development for the country and “a significant opportunity to deliver solutions to Indonesia’s mining industry’s growing environmental challenges.”
Demand-side dynamics appear favourable. According to Estrella, the Asia Pacific calcite market is expected to grow from US$5 billion in 2023 to over US$8.1 billion by 2032. That growth is being driven by infrastructure booms in countries like Indonesia, Vietnam and the Philippines, along with a shift away from Chinese sources of industrial minerals due to environmental and political constraints. In this context, Estrella’s clean and abundant limestone could attract strong regional interest—if it can get it to market.
Despite the compelling narrative, it’s worth noting that Estrella shares were recently trading around 3 cents, below the $0.05 strike price of the REM options. That pricing reflects the speculative nature of the stock and the fact that none of the major milestones—JORC resource, scoping study, permits—have yet been achieved. The 500 million tonnes figure is not a production forecast, and Estrella is at pains to clarify that it does not currently have “sufficient objective reasonable grounds” to believe it can be achieved.
In essence, Estrella is layering ambition upon geology, hoping that its twin plays in manganese and limestone will give it a competitive edge in the region. Whether this strategy bears fruit will depend on its ability to meet regulatory and technical milestones over the next 12 to 18 months.
This is not investment advice. Readers are urged to conduct their own research and consult a licensed financial advisor before making any investment decisions.