Dual-listed Mkango Resources has successfully produced neodymium and praseodymium- (NdPr-) enriched rare earth carbonate from the final stages of hydrometallurgical piloting at ANSTO in Australia for the Songwe Hill rare earths project in Malawi.
Piloting is an integral part of the feasibility study for Songwe, with Mkango joining the ranks of the few rare earth companies globally which have reached this stage of development, the company points out.
Mkango has now successfully completed flotation piloting and all six hydrometallurgy pilot campaigns, testing all aspects of the processing flow sheet.
The piloting of the hydrometallurgy processing flowsheet is a critical step towards commercialisation of the Songwe Hill project, Mkango highlights.
It indicates that the feed for the hydrometallurgy pilot plant was flotation concentrate derived from the highly successful flotation pilot programme completed last year.
NdPr is a key component of the permanent magnets used in electric vehicles, wind turbines and many electronic devices and prices for neodymium and praseodymium oxides have risen by 85% and 135%, respectively, over the last 12 months, Mkango points out.
The rare earths carbonate produced at Songwe Hill will feed Mkango's proposed Pulawy separation plant development in Poland.
Technical aspects of the feasibility study for Songwe Hill are close to completion, with the majority of engineering workstreams 100% complete and most other key workstreams more than 90% complete.
Negotiations of the mining development agreement (MDA) with the government of Malawi are also well advanced, the company says.
It notes that the MDA confirms the fiscal and legal terms for project development, and is expected to take up to three months to finalise, upon which the results of the feasibility study and valuation metrics will be announced.
During this period, Mkango says it will continue to advance ongoing discussions with potential strategic investors and offtakers, and work closely with its brokers, project finance adviser Terrafranca Capital Partners and US strategic adviser Jones Group International.
Mkango also recently engaged EIT RawMaterials to further support financing discussions in Malawi and Poland.
EIT RawMaterials provides support to Mkango within the framework of the European Raw Materials Alliance.
The MDA was recently highlighted to the Malawi Parliament in a speech by Malawi President Lazarus Chakwera and also during the Malawi 2022/23 Budget by Finance Minister Sosten Gwengwe. Both Mkango and the government of Malawi are prioritising its successful completion, Mkango says.
“Through its investments across the supply chain, Mkango is uniquely positioned to be a future producer of rare earth oxides, recycled alloys and magnets - the latter through its 42% strategic interest in short loop rare earth magnet recycler HyProMag,” Mkango CE William Dawes points out.