Mkango produces rare earth metals from Songwe Hill project in Malawi 

Mkango Resources (TSXV: MKA) says that it has produced neodymium and praseodymium enriched rare earth carbonate on a pilot basis from raw materials taken from its Songwe Hill Rare Earths project in Malawi in east Africa.  

The company’s CEO William Dawes told The Northern Miner that the hydrometallurgical piloting, which took place at Australia’s Nuclear Science and Technology Organisation, was a key part of the project’s feasibility study which is nearing completion and that “very few rare earth companies” had reached this stage of development. 

“This is the culmination of a huge amount of work to produce on a pilot scale, not only a marketable carbonate product, but one enriched in neodymium and praseodymium, the key rare earths used in magnets for EVs, wind turbines and numerous other key applications,” Dawes said in an emailed response.  

The Songwe Hill is located in southeastern Malawi, about 70 km away from the country’s former capital Zomba. Mkango has been exploring and working on the 100%-owned property since 2010 with diamond drilling campaigns conducted in 2011, 2012 and 2018.  

Dawes said that the decade-long timeline reflects the “significant amount of work required to get any rare earths project to feasibility study.” He added that the company worked against the backdrop of a significant downturn in the sector, which has now reversed into a major new supercycle for critical minerals such as rare earths due to high demand for electric vehicles. 

“This project is one of the very few advanced stage rare earth projects outside China,” said Dawes, who expects the property to help develop a robust supply chain for rare earths at a time when critical minerals are facing a supply challenge.  

The CEO also said that the company was uniquely positioned as a result of its 42% stake in U.K.-based company HyProMag, which he believes will be the first company to produce recycled sintered rare earth magnets next year. 

The project is expected to have an 18-year mine life with an initial capex of US$216 million, according to a pre-feasibility study conducted in 2015. At a 10% discount rate, the project would generate a post-tax net present value of US$345 million and an internal rate of return (IRR) of 37%.  

According to the new feasibility study’s mine plan, the ore will be processed on site to produce rare earth carbonate, while the rare earth carbonate will be processed at Mkango’s proposed separation plant in Poland to produce separated neodymium and praseodymium oxides, said Dawes.  

The project has measured and indicated resources of 21 million tonnes grading 1.41% total rare earth (TREO) oxides in 297,400 tonnes of TREO. Inferred resources add 27.54 million tonnes grading 1.33% TREO in 366,200 tonnes of TREO. 

At presstime in Toronto, Mkango was trading at 40¢ per share within a 52-week trading range of 31¢ and 70¢. The company has 214.5 million common shares outstanding for a market cap of $85.8 million.