- Mkango Resources
- 25 November 2024 16:18:51
Source: Sharecast
The AIM-traded firm said the study, conducted in collaboration with CoTec Holdings and led by independent engineers, highlighted the project’s robust economics and its potential to enhance domestic recycled magnet production.
It said the HyProMag USA facility, to be located in the Dallas-Fort Worth area of Texas, with additional processing sites on the East and West Coasts, would use the patented Hydrogen Processing of Magnet Scrap (HPMS) technology.
That process, developed by the University of Birmingham, efficiently recycles neodymium iron boron (NdFeB) magnets with a significantly lower carbon footprint compared to chemical recycling methods.
The company said the recycled magnets would serve critical industries, including defense, aerospace, automotive, and renewable energy.
It said the feasibility study projected a post-tax net present value of $262m and a 23% internal rate of return at current market prices, with even stronger results anticipated under forecast price scenarios.
Initial production capacity was set at 750 metric tons of recycled NdFeB magnets per year, with the potential to expand operations within three years.
Upfront capital costs for the project were estimated at $125m, with revenue generation targeted for the first quarter of 2027.
Mkango emphasised the strategic importance of the initiative in securing a domestic supply of NdFeB magnets, reducing reliance on imported materials while supporting US supply chain security.
The project was expected to create about 90 jobs across the states of Texas, South Carolina and Nevada, and contribute to decarbonising the production of critical materials.
An ISO-compliant carbon footprint analysis of the recycled materials was underway, and expected to be completed by the end of the year.
With its modular design, the firm said the facility could be scaled to meet future demand and replicate operations in additional locations.
Mkango aimed for the project to capture 10% of US domestic NdFeB magnet demand within five years.
“This is a major milestone for HyProMag, further validating the HPMS technology and opportunity to roll-out into the United States,” said Mkango chief executive officer Will Dawes.
“Our strategy to develop rare earth magnet recycling and manufacturing hubs in the United States, UK, Germany and, in the future, Asia, is aligned with the evolving geopolitical environment through the development of more robust rare earth supply chains for the respective domestic markets, while catalyzing new centers of excellence in magnetic materials and cross-fertilization of skills across jurisdictions and between industry and academia.”
At 1557 GMT, shares in Mkango Resources were up 29.02% at 8p.
Reporting by Josh White for Sharecast.com.