Mkango, Cotec's HyProMag finalizes Texas plant lease

Executive Summary

• Mkango Resources Ltd. (via its partner HyProMag USA LLC) has finalized a long-term lease for its proposed rare earth magnet recycling and manufacturing facility in Dallas-Fort Worth, Texas.
• The facility, located at the Ironhead Commerce Center, will utilize patented Hydrogen Processing of Magnet Scrap (HPMS) technology to recover and remanufacture rare earth magnets from end-of-life products.
• The project is part of a broader "hub and spoke" network including preprocessing facilities in Nevada and South Carolina, with a target commissioning date of mid-2027.

Key Details

• Lease Agreement: HyProMag USA LLC finalized a long-term lease for Building 1 at the Ironhead Commerce Center in Denton County, Texas.
• Facility Size: HyProMag USA will occupy approximately 50% of Building 1, totaling roughly 128,000 square feet.
• Strategic Location: The site is located next to critical infrastructure, specifically the BNSF intermodal rail link and Alliance airport.
• Technology: The facility will leverage patented HPMS technology, developed by the University of Birmingham’s Magnetic Materials Group and exclusively licensed to HyProMag Ltd.
• Production Capacity: The Texas facility is estimated to produce 750 metric tonnes per annum (mtpa) of recycled sintered NdFeB magnets and 807 mtpa of associated NdFeB co-products, totaling 1,557 metric tonnes of payable capacity within five years of commissioning.
• Timeline: Target commissioning is mid-2027, subject to final permitting and financing.
• Job Creation: The project anticipates creating approximately 90 to 100 skilled jobs in magnet manufacturing, engineering, and advanced materials processing.
• Feedstock Supply: Intelligent Lifecycle Solutions (ILS) has commenced stockpiling magnet-bearing materials to support operations, following a feedstock supply and preprocessing site share agreement.
• Network Expansion: The Texas facility serves as the central hub for a network including planned preprocessing facilities in Nevada and South Carolina.
• Carbon Footprint: An independent ISO-compliant study confirmed a CO2 footprint of 2.35 kg CO2 equivalent per kg of NdFeB cut sintered block product.
• Recent Developments:
  • March 2025: Expansion of detailed engineering to include three HPMS vessels; initiation of concept studies for further expansion and long-loop recycling.
  • August 2025: ILS formally commenced stockpiling feedstock.
  • September 2025: Commissioning of concept studies for Nevada/South Carolina expansion and long-loop recycling with Worley Group Inc.

Notable Quotes

• Julian Treger, CEO of Cotec: "Finalizing the Texas facility lease represents another major milestone in HyProMag USA's mission to deliver a secure, sustainable rare earth magnet supply chain in the United States. With the site secured and local partnerships in place, we're moving decisively toward completing financing, construction and the first commercial-scale production of recycled magnets in the United States."
• Will Dawes, Mkango CEO and HyProMag USA Director: "The Texas facility being developed by HyProMag USA will help to transform rare earth supply chains in the United States. Together with our partners, we're building the foundation for a resilient domestic magnet sector that supports the next generation of clean energy and technology manufacturing."