MKANGO RESOURCES LTD.
550 Burrard Street
Suite 2900
Vancouver
BC V6C 0A3
Canada
PILOT PLANT SUCCESSFULLY COMMISSIONED
FOR LONG-LOOP RECYCLING OF RARE EARTH MAGNETS
Highlights
· Mkango Rare Earths UK has
successfully commissioned a long-loop recycling pilot
plant at Tyseley Energy Park in Birmingham, which processes NdFeB
magnet scrap or swarf to produce rare earth carbonates and oxides
via a chemical route
· Complements
the short-loop
recycling plant currently being commissioned by HyProMag and
University of Birmingham also at Tyseley Energy Park, which
processes NdFeB magnet scrap to produce rare earth alloys and
magnets
· Both recycling processes are
underpinned by the patented Hydrogen Processing of
Magnet Scrap (HPMS) technology developed at University of
Birmingham, which liberates NdFeB magnets from end-of-life scrap
streams in a cost effective and energy efficient
way
London / Vancouver: July 1, 2024 - Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company" or
"Mkango") is pleased to announce that Mkango Rare Earths UK
("Mkango UK") has successfully commissioned
a pilot plant designed to produce separated magnet rare earths
(neodymium/praseodymium and dysprosium/terbium carbonates or
oxides) via a long-loop recycling process. Mkango UK is 100% owned
by Maginito Limited ("Maginito"), which is 79.4% owned by Mkango
and 20.6% owned by CoTec Holdings ("CoTec").
The long-loop pilot plant received
70% of its funding from the UKRI's Driving Electric Revolution
Challenge, delivered by Innovate UK, as part of the grant-funded
project "Secure Critical Rare Earth Magnets for the UK" (SCREAM).
Project partners include HyProMag, Bowers & Wilkins, European
Metal Recycling (EMR), GKN Automotive, Jaguar Land Rover, and the
University of Birmingham.
William Dawes, Chief
Executive of Mkango stated: "This is a significant achievement for the
Mkango UK team. We considered it key to develop this
technical capability, given that some of the HPMS product not
suitable for short-loop magnet manufacture and all swarf produced
by HyProMag will require long loop chemical processing. This pilot
plant enables us to determine the cost structure and carbon
footprint of the baseline process, enabling the evaluation of
different options for long-loop recycling on a commercial
basis."
Nielson Beddoe,
Processing Engineering Manager of Mkango UK stated:
"We're very excited to have
reached this major milestone. This is a credit to our excellent
technical team in Birmingham and we are looking forward to the next
steps as we progress through process optimization, scoping studies
and evaluation of bolt-on technology enhancements. The development
of the long-loop process enhances the technical flexibility to process
different scrap streams, including swarf, and to produce a range of
rare earth products. This strengthens ongoing customer engagement
working closely with the HyProMag team."
Professor Allan
Walton, Head of the Magnetic Materials Group at University of
Birmingham and founding Director of HyProMag stated:
"We are excited to see this
additional capability for long-loop chemical processing brought to
Tyseley Energy Park with the support of the University of
Birmingham. Commissioning of the short-loop recycling plant is
gathering momentum following commissioning of the commercial scale
magnet manufacturing presses in December last year, with
infrastructure development starting in the coming weeks, and
delivery of the powder processing plant and HPMS vessel expected in
July and August, respectively."
Rare earth magnets play a key role in clean energy
technologies including electric vehicles and wind turbine
generators, and they are also a key component in electronic devices
including mobile phones, hard disk drives and loudspeakers. The UK
has no domestic source of primary rare earths. The development of
domestic sources of recycled rare earths via HPMS, a homegrown
technology, is a significant opportunity for the UK to fast-track
the development of sustainable and competitive rare earth magnet
production.
Both long-loop and short-loop
recycling technologies are underpinned by the
patented HPMS technology developed at University of Birmingham,
which liberates magnets from end-of-life scrap streams in a cost
effective and energy efficient way to produce a recycled NdFeB
alloy powder, which is manufactured into a magnet (via the short loop process) or
into a rare earth carbonate or oxide (via the long loop chemical
process).
Optimisation of long-loop pilot
operations is underway, targeting near-term pilot scale production
of the first 50kg batch of rare earth carbonates and oxides, in
parallel with completion of scoping studies and evaluation of
options to advance long loop recycling via stand-alone development,
joint venture or other commercial arrangements. The long-loop
recycling route is used to process NdFeB HPMS
powder not suitable for short-loop recycling or for the processing
of magnet swarf (i.e. the powder produced from grinding and
finishing magnets).
In parallel, commissioning of the
commercial scale short-loop magnet
recycling plant by University of Birmingham and
HyProMag (main industrial partner and exclusive HPMS licencee) is
underway.
HyProMag is also commercialising
HPMS recycling technology in Germany and United States, with
commercial production targeted for 2025 and 2026,
respectively.
HPMS technology is underpinned by
approximately US$100 million of research and development funding,
and has major competitive advantages versus other rare earth magnet
recycling technologies, which are largely focused on chemical
processes but do not solve the challenges of liberating magnets
from end-of-life scrap streams - HPMS provides the
solution.
HyProMag's HPMS recycling technology
was selected by the Minerals Security Partnership ("MSP") for
support as one of its key projects. The technology was selected
because the MSP determined its strong potential to contribute
towards the development of responsible critical mineral supply
chains.
The MSP was formed in 2022 by 14
governments and aims to ensure adequate supplies of minerals such
as rare earths to meet net zero-carbon goals. It
aims to support public and private sector
investments building diverse, secure, and responsible global
critical minerals supply chains.
About Mkango
Mkango is listed on the AIM and the TSX-V. Mkango's
corporate strategy is to become a market leader in the production
of recycled rare earth magnets, alloys and oxides, through its
interest in Maginito Limited ("Maginito"), which is owned 79.4 per
cent by Mkango and 20.6 per cent by CoTec, and to develop new
sustainable sources of neodymium, praseodymium, dysprosium and
terbium to supply accelerating demand from electric vehicles, wind
turbines and other clean energy technologies.
Maginito holds a 100 per cent
interest in HyProMag and a 90 per cent direct and indirect interest
(assuming conversion of Maginito's convertible loan) in HyProMag
GmbH, focused on short loop rare earth magnet recycling in the UK
and Germany, respectively, and a 100 per cent interest in Mkango
Rare Earths UK Ltd ("Mkango UK"), focused on long loop rare earth
magnet recycling in the UK via a chemical route.
Maginito and CoTec are also
rolling out HyProMag's recycling technology into the United States
via the 50/50 owned HyProMag USA LLC joint venture company.
Mkango also owns the advanced stage Songwe Hill rare
earths project and an extensive rare earths, uranium, tantalum,
niobium, rutile, nickel and cobalt exploration portfolio in Malawi,
and the Pulawy rare earths separation project in Poland.
Discussions with the Government of Malawi in relation to the Mining
Development Agreement for Songwe Hill are ongoing.
For more information, please
visit www.mkango.ca
Market Abuse Regulation (MAR) Disclosure
The information contained within this
announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ('MAR') which has been
incorporated into UK law by the European Union (Withdrawal) Act
2018. Upon the publication of this
announcement via Regulatory Information
Service, this inside information is now considered to be in the
public domain.
Cautionary Note Regarding Forward-Looking
Statements
This news release contains forward-looking statements
(within the meaning of that term under applicable securities laws)
with respect to Mkango. Generally, forward looking statements can
be identified by the use of words such as "targeted", "plans",
"expects" or "is expected to", "scheduled", "estimates" "intends",
"anticipates", "believes", or variations of such words and phrases,
or statements that certain actions, events or results "can", "may",
"could", "would", "should", "might" or "will", occur or be
achieved, or the negative connotations thereof. Readers are
cautioned not to place undue reliance on forward-looking
statements, as there can be no assurance that the plans, intentions
or expectations upon which they are based will occur. By their
nature, forward-looking statements involve numerous assumptions,
known and unknown risks and uncertainties, both general and
specific, that contribute to the possibility that the predictions,
forecasts, projections and other forward-looking statements will
not occur, which may cause actual performance and results in future
periods to differ materially from any estimates or projections of
future performance or results expressed or implied by such
forward-looking statements. Such factors and risks include, without
limiting the foregoing, the availability of (or delays in
obtaining) financing to develop the various recycling plants in the
UK, Germany, governmental action and other market effects on global
demand and pricing for the metals and associated downstream
products for which Mkango is researching and developing, , the
ability to scale the HPMS and chemical recycling technologies to
commercial scale, competitors having greater financial capability
and effective competing technologies in the recycling and
separation business of Maginito, availability of scrap supplies for
recycling activities, government regulation (including the impact
of environmental and other regulations) on and the economics in
relation to recycling and the development of the various recycling
plants of Maginito and future investments in the United States
pursuant to the cooperation agreement between Maginito and CoTec,
the outcome and timing of the completion of the feasibility
studies, cost overruns, complexities in building and operating the
plants, and the positive results of feasibility studies on the
various proposed aspects of Maginito's activities. The
forward-looking statements contained in this news release are made
as of the date of this news release. Except as required by law, the
Company disclaims any intention and assume no obligation to update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by
applicable law. Additionally, the Company undertakes no obligation
to comment on the expectations of, or statements made by, third
parties in respect of the matters discussed above.
For further
information on Mkango, please contact:
Mkango Resources
Limited
William
Dawes
Alexander Lemon
Chief Executive
Officer
President
will@mkango.ca
alex@mkango.ca
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
SP Angel Corporate
Finance LLP
Nominated Adviser and Joint Broker
Jeff Keating, Caroline Rowe, Kasia Brzozowska
UK: +44 20 3470 0470
Alternative Resource
Capital
Joint Broker
Alex Wood, Keith Dowsing
UK: +44 20 7186 9004/5
The TSX Venture Exchange has
neither approved nor disapproved the contents of this press
release. Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy any equity or other securities of
the Company in the United States. The securities of the Company
will not be registered under the United States Securities Act of
1933, as amended (the "U.S. Securities Act") and may not be offered
or sold within the United States to, or for the account or benefit
of, U.S. persons except in certain transactions exempt from the
registration requirements of the U.S. Securities
Act.