Mkango Magnetic Materials Limited Announces Hypromag USA Secures Power and Advances Project

Mkango Resources Ltd. (MKA) released an operational update on October 13, 2026, regarding the HyProMag USA Texas Hub. The facility is a 50:50 joint venture between CoTec Holdings and HyProMag Limited, which is 79.4%-owned by Mkango via Maginito. The release serves as a project execution update rather than an earnings report, focusing on de-risking development steps and restating the phased plan.

HyProMag USA has secured electrical power capacity with Oncor Electric Delivery Company for both the cutting and finishing operation and Phase 1, with a pathway via a sub-station upgrade to Phase 2. The electricity is expected to be predominantly renewable. In terms of engineering and permitting, PegasusTSI has begun a request for quotation process to select a general contractor for the cutting and finishing operations. Weston Solutions is advancing permitting, while Pegasus and BBA USA serve as the EPCM firms.

The company targets commissioning of the cutting and finishing operations in the first half of 2027. Processing will initially utilize NdFeB magnet blocks supplied from the HyProMag Group in the UK and Germany to produce finished magnets, with qualification to ASTM A977/A977M and ISO 9001-aligned quality systems.

At the project level, Phase 1 is targeted for completion in mid-2028. It is designed for approximately 550 tonnes per annum (tpa) of NdFeB magnet blocks and finished magnets, plus approximately 484 tpa of co-products, resulting in approximately 1,034 tpa of total payable production. Phase 2 envisages approximately 1,526 tpa of total payable production, comprising approximately 1,048 tpa of magnets and cylinders plus approximately 478 tpa of co-products.

The release does not disclose financing details, capital expenditure amounts, offtake agreements, feedstock sources, or earnings figures. Oncor was previously named on June 22, 2026, as being in formal discussions, and the early-finishing strategy for the first half of 2027 was set out on July 27, 2026. This update represents a follow-through on those prior announcements rather than a new strategic direction.

Mkango Resources Ltd. (MKA) has secured power capacity and initiated a general-contractor request for quotation (RFQ) for its cutting and finishing line. These developments represent incremental execution milestones that address specific project risks related to power availability, permitting pathways, and contractor readiness.

The company has outlined a timeline for the H1 2027 finishing phase and mid-2028 completion of Phase 1. These dates align with previous disclosures from June and July 2026, indicating no acceleration or delay relative to the immediately preceding plan.

Production figures provided in the release pertain specifically to the Texas Hub project-level payable capacity, including co-products, and should not be interpreted as company-wide metrics. There are inconsistencies in phased capacities across recent releases. The July 2026 disclosure framed the initial integrated capacity at approximately 678 tpa, comprising roughly 400 tpa of magnets and 278 tpa of co-products. This release defines Phase 1 at approximately 1,034 tpa, consisting of roughly 550 tpa of magnets and 484 tpa of co-products. Earlier releases cited figures of 1,552 tpa and 1,557 tpa, while this document caps Phase 2 at 1,526 tpa.

Prior-period context not included in today’s release includes an April 2026 capital raise of £12.5M gross and Q1-2026 MD&A details regarding HyProMag USA capex of approximately US$152M and discussions with three institutions regarding project finance. None of that financing is closed, and this release provides no update on its status.

Mkango Resources Ltd. (ticker MKA) is repositioning from an upstream rare earths developer to a downstream magnet recycling and manufacturing company. The company underwent a name change to Mkango Magnetic Materials Ltd., effective at the start of trading on 2026-09-23.

The firm’s recycling and manufacturing operations are conducted via 79.4%-owned Maginito, which holds a 20.6% stake with CoTec. Maginito holds 100% of HyProMag Ltd, a UK-based short-loop facility located at Tyseley Energy Park. It also holds a 90% direct or indirect interest in HyProMag GmbH, a German short-loop facility in Pforzheim, and 100% of Mkango Rare Earths UK, which focuses on long-loop chemical recycling. Additionally, the company acquired Remloy, a medium-loop melting facility in Bitterfeld, Germany, that produces NdFeB alloy powders, from Heraeus Amloy.

The company’s flagship development asset is the 100%-owned Songwe Hill rare earths project in Malawi, though Malawi may take a free 10% stake upon the grant of the large-scale mining licence. A separate proposed rare earths separation plant is planned for Pulawy, Poland. Both the Songwe Hill and Pulawy projects, along with HyProMag GmbH, are designated as strategic projects under the EU Critical Raw Materials Act.

In a corporate separation, Songwe Hill and Pulawy are situated within Mkango Rare Earths Ltd (MKAR). This entity is subject to a SPAC merger with Crown PropTech Acquisitions for a Nasdaq listing. The shift toward a pure-play downstream focus is recent; the company spent 2025-2026 assembling its recycling platform, including HyProMag and Remloy, while attempting to spin out its mining assets, a structure that involves complex execution and financing dependencies.