South Africa’s Department of Trade and Industry (DTI) has approved a R7 967 804 grant under its Capital Projects Feasibility Programme to finance a feasibility study into Canadian-listed Mkango Resources’ flagship Songwe Hill rare earths exploration project, in southern Malawi.

Mkango president Alexander Lemon reports that the grant funds will be released to the company between this month and March next year as the company meets certain milestones, including the finalisation of environmental- and social- impact studies, a mine plan, the design of the processing plant and tailings storage facility, and flotation and hydrometallurgical optimisation and marketing studies.

Mkango contracted several companies to complete the prefeasibility study, including South Africa’s SNC-Lavalin, which is working on beneficiation and hydrometallurgical plant and associated infrastructure.

It also appointed Digby Wells Environmental, of South Africa, which is currently executing environmental- and social-impact studies; Epoch Resources, also of South Africa, which is working on the tailings storage facility; Met-Chem Consulting, of Australia, which is conducting metallurgical optimisation work; Mintek, of South Africa, which is also undertaking metallurgical optimisation; MSA Group, of South Africa, which is executing mining studies and associated infrastructure studies; and Nagrom Laboratories, of Australia, which is conducting metallurgical optimisation work.

Mkango CEO William Dawes comments that Digby Wells Environmental has completed a comprehensive environmental and social prefeasibility report and is about to embark on the feasibility study.

SNC-Lavalin has completed the first phase of the prefeasibility study for the plant, focusing on the mill, flotation plant and associated infrastructure, and is now focusing on the hydrometallurgical process plant.

Dawes says MSA Group has started work on mine planning and associated infrastructure.

“We would like to thank the South African DTI for its support, and look forward to working closely with the department and developing further synergies with the Republic of South Africa. We are very pleased to qualify for this significant funding which, in addition to our recent $2.3-million fundraising, provides a solid platform to advance the project towards the development phase.”

The Songwe Hill rare earths deposit contains several million tonnes of rare-earth ore that can sustain mining operations for more than 20 years.

Mkango conducted exploratory drilling at the deposit, which hosts carbonatite-hosted rare-earth mineralisation and was subject to previous exploration in the late 1980s.

Mkango is also undertaking regional exploration at its tenement in Thambani, where a number of areas with potential for uranium, zircon, corundum and niobium have been identified.

“The corporation’s strategy is to further develop the Songwe Hill rare earths deposit and secure additional rare- earth elements and other mineral opportunities in Malawi and else- where in Africa,” says Dawes.