Mkango, Cotec's HyProMag finalizes Texas plant lease

Executive Summary

• Mkango Resources Ltd. and Cotex Holdings’ joint venture HyProMag USA LLC finalized a long‑term lease for a 128,000 sq ft rare‑earth magnet recycling and manufacturing facility at Ironhead Commerce Center in Dallas‑Fort Worth, Texas.
• The Texas plant is slated for commissioning by mid‑2027 (subject to permitting and financing) and is projected to produce up to 750 t/yr of recycled NdFeB magnets plus 807 t/yr of co‑products, creating ~90–100 skilled jobs.
• HyProMag USA has secured feedstock supply from Intelligent Lifecycle Solutions (ILS) and will occupy 50 % of the building, serving as the hub for a “hub‑and‑spoke” network that includes future preprocessing sites in Nevada and South Carolina.

Key Details

• Lease Agreement: Finalized long‑term lease for Building 1, Ironhead Commerce Center, Dallas‑Fort Worth, Texas; 50 % occupancy (~128,000 sq ft).
• Technology: Facility will employ patented Hydrogen Processing of Magnet Scrap (HPMS) technology licensed exclusively to HyProMag Ltd.
• Production Capacity: Estimated annual output of 750 t of recycled sintered NdFeB magnets and 807 t of associated NdFeB co‑products (total payable capacity 1,557 t within five years of commissioning).
• Project Timeline: Targeted commissioning by mid‑2027, pending final permitting and financing.
• Employment Impact: Anticipated creation of approximately 90–100 skilled jobs in magnet manufacturing, engineering, and advanced materials processing.
• Feedstock Supply: Partnership with Intelligent Lifecycle Solutions (ILS) established; ILS has begun stockpiling magnet‑bearing feedstock for the U.S. operations.
• Network Design: Texas facility will act as central hub of a short‑loop “hub‑and‑spoke” network, with planned preprocessing facilities in Nevada and South Carolina; modular design enables rapid replication across the United States.
• Feasibility Study Highlights (2025):
• Annual production capacity as above, 40‑year operating life.
• Carbon footprint study showed 2.35 kg CO₂e per kg of NdFeB cut sintered block product.
• Strategic Comments:
• Julian Treger (CEO, Cotec) emphasized the lease as a major milestone toward financing, construction, and first commercial‑scale production.
• Will Dawes (Mkango CEO & HyProMag USA Director) highlighted the project’s role in transforming U.S. rare‑earth supply chains and supporting clean‑energy technology manufacturing.

Notable Quotes

• “Finalizing the Texas facility lease represents another major milestone… we’re moving decisively toward completing financing, construction and the first commercial‑scale production of recycled magnets in the United States.” – Julian Treger, CEO, Cotec Holdings Corp.
• “The Texas facility being developed by HyProMag USA will help to transform rare earth supply chains in the United States… building the foundation for a resilient domestic magnet sector that supports the next generation of clean energy and technology manufacturing.” – Will Dawes, Mkango CEO & HyProMag USA Director