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Aim-listed Mkango Resources and partner TSX-V-listed CoTec have appointed two US-based engineering solutions companies to engineer and design a rare earth elements magnet recycling plant and production facility in the US, as part of a bankable feasibility study (BFS) for the HyProMag US project.
HyProMag, of which HyProMag US forms part, aims to develop a sustainable and long-term supply of neodymium/iron/boron permanent magnets in the US, which should enable the creation of low-carbon and traceable rare earth supply chains, while building rare earth magnet recycling capacity in the UK and Germany.
The two engineering companies, BBA USA and PegasusTSI, will complete their portion of the work in the second half of the year.
CoTec CEO Julian Treger says the BFS represents a significant milestone towards the construction of commercial-scale magnet recycling and production facilities in the US and that HyProMag will continue collaborating closely with local, state and federal stakeholders.
Mkango CEO Will Dawes says the companies see the US as a major growth opportunity underpinned by ongoing development of HyProMag’s operations in the UK and Germany. “The ability to effectively liberate magnets from end-of-life scarp streams will ensure a reduced carbon footprint,” he states.
Dawes adds that HyProMag has received strong interest and numerous enquiries for recycled magnets and recycling solutions and is engaged with multiple companies for potential collaboration. In this regard, a number of test work trials are being completed for various multinational companies.
HyProMag’s facility in the US will ultimately comprise a rare earth magnet and production business underpinned by patented hydrogen processing of magnet scrap (HPMS) recycling technology.
HyProMag sublicensed this technology to HyProMag US, which is jointly owned by CoTec and Maginito. Maginito, in turn, is 79.4% owned by Mkango and 20.6% by CoTec.
Maginito holds a 100% interest in HyProMag.
Mkango also owns the advanced-stage Songwe Hill rare earths project, in Malawi and the Pulawy rare earths separation project in Poland.
The BFS will be based on a hub and spoke model using three HPMS vessels and one magnet manufacturing hub, which will be based in Texas. The BFS will include the completion of detailed engineering designs, as well as permitting and potential site acquisition by the end of the year.
The initial project schedule targets revenue generation from the project by 2025/26.
Following completion of the BFS, Mkango and CoTec will make a joint decision as to whether HyProMag US will proceed with the construction of the US project.
CoTec is responsible for funding the BFS and project development costs, but HyProMag US is also working on securing US government funding and strategic partnerships for feed supply and recycled rare earth magnet offtake.