Mkango says Songwe Hill unaffected by Malawi export ban

Executive Summary

• Mkango Resources Ltd. confirms that its Songwe Hill rare earth mining project in Malawi is unaffected by Executive Order No. 2 of 2025, which prohibits the export of raw, unprocessed minerals.
• The company clarifies that the Songwe Hill project produces a value-added, processed, and refined mixed rare earth carbonate product on-site, which falls outside the scope of the export ban.
• Mkango is progressing with preparations for front-end engineering and design (FEED) following a recent project development funding agreement with the U.S. International Development Finance Corp.

Key Details

• Regulatory Context: The Executive Order No. 2 of 2025, issued by President Prof. Arthur Peter Mutharika of Malawi, aims to prohibit the export of raw minerals to promote local value addition and economic development.
• Project Status & Compliance: The Songwe Hill project will produce a "value-added processed and refined mixed rare earth carbonate product" at the mine site. Consequently, the export prohibitions do not apply to Songwe as the ban targets minerals that have not been processed, refined, or value-added in Malawi.
• Financing & Development: Mkango is advancing preparations to initiate front-end engineering and design (FEED) for the Songwe Hill project. This follows the announcement of a project development funding agreement with the U.S. International Development Finance Corp.
• Corporate Structure & Assets:
  • Mkango holds a 79.4% interest in Maginito Ltd. (20.6% held by Cotec Holdings Corp.).
  • Maginito holds 100% of HyProMag and a 90% direct/indirect interest in HyProMag GmbH (focused on short-loop rare earth magnet recycling in the UK and Germany).
  • Maginito holds 100% of Mkango Rare Earths U.K. Ltd. (focused on long-loop rare earth magnet recycling in the UK).
  • A 50/50 joint venture, HyProMag USA LLC, is rolling out HPMS (hydrogen processing of magnet scrap) recycling technology into the United States.
  • Mkango owns the advanced-stage Songwe Hill rare earths project in Malawi and the Pulawy rare earths separation project in Poland.
  • Both Songwe and Pulawy projects are selected as strategic projects under the European Union Critical Raw Materials Act.
• Listing Plans: Mkango has signed a business combination agreement (BCA) with Crown PropTech Acquisitions (CPTK) to list the Songwe Hill and Pulawy projects on the Nasdaq Stock Market via a SPAC merger. Completion is subject to standard conditions.

Notable Quotes

• "The Songwe Hill rare earth mining project will be producing a value-added processed and refined mixed rare earth carbonate product at the mine site in Malawi. As such, the prohibitions outlined in executive order No. 2 of 2025 are not applicable to Songwe as the ban only relates to minerals that have not been processed, refined or value added in Malawi."