Mkango Resources Limited Announces Agreement With Heraeus To Acquire Heraeus Remloy
Mkango’s judicious €8 million bolt‑on in Germany transforms its European recycling roadmap from promise into immediate production capacity—with feedstock in hand.
On May 20, 2026, Mkango Resources announced an agreement to acquire the Remloy rare‑earth magnet recycling business from Heraeus Amloy Technologies for €8 million (US$9.4 million) in cash.
- The deal includes a fully commissioned plant in Bitterfeld, Germany (total capacity 500 tonnes per year NdFeB alloy) and a stockpile of over 300 tonnes of rare‑earth magnet and alloy feedstock.
- Payment is split: €5 million at closing, €3 million two years later.
- The initial €5 million will be funded from Mkango’s existing cash balance after the £12.5 million (US$16.8 million) placement that closed on April 10, 2026.
- Remloy uses a medium‑loop recycling (melting) process that complements HyProMag’s short‑loop HPMS technology, opening a path to supply NdFeB powders for bonded and hot‑deformed magnets.
- Management expects synergies with HyProMag’s existing German and UK operations and potential future integration with primary feedstock from Songwe Hill.
- Closing is targeted within three months (Summer 2026).
This is a materially positive event. The acquisition directly delivers:
- Immediate production capacity and significant feedstock – a rare combination in a sector where securing inventory is often the bottleneck.
- No dilution – the entire price comes from cash on hand that was recently raised specifically for a German acquisition and plant capex, exactly matching the stated use of proceeds (the April 2026 raise earmarked ~£4.3 million for a German M&A target).
- Strategic logic – Remloy’s technology and location fill a gap in Mkango’s European recycling network; it adds medium‑loop melting to HyProMag’s short‑loop HPMS, enabling a broader product range for bonded and hot‑deformed magnets.
- De‑risking of the German story – instead of building organically from scratch, Mkango gains an operational plant with existing customer relationships and inventory.
In the context of the historical news, this follows a clear execution pattern:
- The fundraise in March/April 2026 explicitly mentioned a “potential acquisition in Germany”.
- HyProMag Germany’s own plant in Pforzheim was only just commissioning (first HPMS runs in April 2026). The Remloy acquisition gives Mkango two operational German sites almost overnight, greatly accelerating scale‑up.
The stock price (US$0.82) has been declining from a high of ~US$0.94 in late April, so this news may stabilise or reverse that trend, although the market may have partially anticipated it after the capital raise. Overall, the deal is accretive, strategically sound, and well‑funded—a clear material positive.
Mkango Resources is a vertically‑integrated rare‑earth company with two core pillars:
1. Upstream Mining & Separation – the Songwe Hill project in Malawi (open‑pit, mixed rare‑earth carbonate) and the Pulawy separation plant in Poland. Both hold EU Critical Raw Materials Act “Strategic Project” status. Songwe’s DFS outlines a post‑tax NPV of ~US$339 million, 24 % IRR, and 18‑year mine life, producing ~5,954 tpa TREO.
2. Downstream Magnet Recycling & Manufacturing – operated through its 79.4 %-owned Maginito subsidiary (which holds HyProMag and Mkango Rare Earths UK). HyProMag employs patented Hydrogen Processing of Magnet Scrap (HPMS) technology to recycle NdFeB magnets at plants in the UK (Birmingham, operational), Germany (Pforzheim, commissioning), and the USA (Texas Hub in engineering, plus spokes in South Carolina and Nevada).
The flagship project is arguably the HyProMag recycling network due to its near‑term revenue generation and rapid scale‑up, though Songwe Hill remains the largest value driver by NPV. The just‑announced Remloy acquisition further cements the recycling division’s prominence.