Mkango Resources Limited Announces HyProMag USA Project Update

Executive Summary

• HyProMag USA’s EPCM Detailed Design for the Texas hub is now 25 % complete, incorporating advanced Grain Boundary Diffusion (GBD) technology and design learnings from UK/Germany facilities.
• The Texas hub targets first magnet production in H1 2027 with an annual capacity of 750 t recycled NdFeB magnets (total payable capacity 1,557 t within five years) and expects to create 90‑100 skilled jobs.
• Funding discussions are ongoing with U.S. government officials, commercial lenders, equity providers and off‑takers; feedstock supply agreements with Intelligent Lifecycle Solutions (ILS) have begun stockpiling for the hub.

Key Details

• EPCM Partners: PegasusTSI (U.S.) and BBA USA Inc. (Canada) engaged to deliver detailed design services.
• Design Progress: Detailed Design 25 % complete; UK/ Germany plant specifications used as reference.
• Technology Integration: Advanced Grain Boundary Diffusion (GBD) added, enabling magnets with coercivity >20 kOe and higher temperature operation.
• UK Pilot Expansion: Throughput at University of Birmingham HPMS pilot tripled; >50 runs completed in six months, informing U.S. design improvements.
• Commissioning Milestones (UK): ~900 kg recycled NdFeB alloy powder produced at Tyseley Energy Park; moving toward finished sintered magnet production.
• Capital Estimate: Class 2 AACE cost estimate being refined; final figure to be confirmed at Notice to Proceed (NTP).
• Site Selection: Four Dallas‑Fort Worth hub sites shortlisted (125,000–140,000 sq ft); commercial negotiations for a 25‑year lease underway.
• Permitting Timeline: Baseline permitting expected to start Q3 2025 once site is confirmed, managed by Weston Solutions.
• Supply & Off‑take: Feedstock supply agreement with Intelligent Lifecycle Solutions (ILS); ILS has begun stockpiling feedstock for the Texas hub. Ongoing engagement with additional feed suppliers and offtakers to satisfy financing requirements.
• Expansion Plans: Scoping study commissioned to evaluate adding two additional hubs in Nevada and South Carolina, expanding footprint from one to three U.S. hubs.
• Long‑Loop Recycling Concept: Worley hired to conduct a concept study for a complementary “long‑loop” recycling process, supporting Mkango’s UK long‑loop pilot plant.
• Funding Efforts: Active discussions with high‑ranking U.S. government officials, commercial lenders, equity investors and offtakers to secure project financing and accelerate development.
• Production Forecast: Texas hub projected annual output – 750 t recycled sintered NdFeB magnets + 807 t NdFeB co‑products (total payable capacity 1,557 t) over a 40‑year operating life; expected to supply U.S. market and provide alloy powder feedstock.
• Job Creation: Anticipated creation of 90–100 skilled magnet manufacturing positions in the United States.
• Carbon Footprint: Independent ISO‑compliant study confirms low CO₂ footprint of 2.35 kg CO₂‑eq per kg NdFeB sintered block.

Notable Quotes

• Julian Treger, CoTec CEO: “We are very pleased with the progress of the EPCM Detailed Design… targeting first magnets in H1 2027 and securing funding from U.S. Government, commercial lenders, equity providers and off‑takers.”
• Will Dawes, Mkango CEO: “HyProMag USA is very well positioned to provide a new domestic sustainable source of rare earth magnets for the United States… creating a strong platform for further expansion.”