Mkango Resources launches HyProMag in Germany to commercialise recovery of rare earths from scrap

Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF) has launched HyProMag Limited in Germany to roll out commercialisation of hydrogen processing of magnet scrap (HPMS) technology into Germany and Europe, and to further support government initiatives to strengthen European rare earth supply chains and accelerate the green transition

The new German subsidiary, HyProMag GmbH, is 80% owned by HyProMag Limited and 20% owned by Professor Carlo Burkhardt of Pforzheim University in Germany, co-ordinator of the €14mln EU-funded SusMagPro project, focused on rare earth magnet recycling with 19 partners across the European supply chain

Both Mkango and HyProMag now have strong and complementary platforms for growth in both the UK and EU, and are well positioned to capitalise on accelerating demand for rare earths and increased focus on the circular economy

Germany is a major producer and market for rare earth magnets in Europe. Germany has no domestic sources of primary rare earths.

The HPMS process for extracting and demagnetising neodymium iron boron alloy powders from magnets embedded in scrap and redundant equipment was originally developed within the Magnetic Materials Group at the University of Birmingham and subsequently licenced to HyProMag.

As an affiliated company, HyProMag GmbH is covered by the exclusive licence of HyProMag and the companies will share new developments.

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.

Mkango’s wholly owned subsidiary Maginito Limited holds a 42% equity interest in HyProMag, with an option to increase its interest up to 49%.

Maginito has the first right to supply primary production – if required for blending with recycled production from HyProMag – as well as product offtake and marketing rights.

“This is an exciting milestone for HyProMag, positioning the company for further growth in Europe and internationally,” said William Dawes, chief executive of Mkango.

“The establishment of HyProMag GmbH also complements Mkango’s strategy to develop a rare earths processing hub in neighbouring Poland, working with Grupa Azoty Pulawy. Mkango looks forward to supporting HyProMag’s development in UK, EU and international markets, as it scales up to commercial production.”

Mkango’s corporate strategy is to develop new sustainable primary and secondary sources of neodymium, praseodymium, dysprosium and terbium to supply accelerating demand from electric vehicles, wind turbines and other clean technologies.

Mkango is developing Songwe Hill in Malawi, with a feasibility study targeted for completion in the first quarter of 2022.

In parallel, Mkango recently announced that Mkango and Grupa Azoty PULAWY, Poland’s leading chemical company and the second largest manufacturer of nitrogen and compound fertilizers in the European Union, have agreed to work together towards development of a rare earth separation plant at Pulawy in Poland. The plant will process the purified mixed rare earth carbonate produced at Songwe.

Through its ownership of Maginito, Mkango is also developing green technology opportunities in the rare earths supply chain, encompassing neodymium magnet recycling as well as innovative rare earth alloy, magnet, and separation technologies.

Mkango also has an extensive exploration portfolio in Malawi, including the Mchinji rutile discovery, for which assay results are pending, in addition to the Thambani uranium-tantalum-niobium-zircon project and Chimimbe nickel-cobalt project.

Story by ProactiveInvestors