Hypromag Commissioning Update FOR the Uk’S First Commercial Scale Rare Earth Magnet Recycling and Manufacturing Plant at Tyseley Energy Park IN Birmingham
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MKANGO RESOURCES LTD.
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HYPROMAG COMMISSIONING UPDATE FOR THE UK’S FIRST COMMERCIAL SCALE RARE EARTH MAGNET
RECYCLING AND MANUFACTURING PLANT AT TYSELEY ENERGY PARK IN BIRMINGHAM
Highlights
• Commissioning of the short-loop magnet recycling and manufacturing plant at Tyseley Energy Park is
continuing to advance with past and upcoming major milestones as follows:
o Magnet manufacturing presses delivered and commissioned in December 2023
o Powder processing (sieving, blending, jet milling) plant delivered in July 2024
o Hydrogen Processing of Magnet Scrap (HPMS) vessel expected to be delivered in September
2024
o Infrastructure development by the contractors expected to commence in September 2024,
with start-up of commercial operations now expected in Q1 2025
o The permitting process for commercial operations is well underway and proceeding as
expected
• The plant is being commissioned by the University of Birmingham with the support of HyProMag, the
main industrial partner for the project and exclusive HPMS licencee
• Initial commercial production is expected at an approximate rate of 25 – 30 tonnes per year of recycled
NdFeB based on 20% capacity utilisation for the first few months, with approximately two months of
NdFeB scrap supply currently in inventory
• The main commercial product will initially be a recycled NdFeB alloy for magnet manufacturing or for
chemical processing by third parties – this will be supplemented with production of recycled sintered
NdFeB magnet blocks for product qualification purposes to support ongoing HyProMag customer
discussions and further scale-up
• The product suite will have a minimal carbon footprint , reflecting the highly energy efficient
combination of HPMS with short -loop magnet manufacturing, with typical product specifications to
be issued by HyProMag in due course
• The production potential at Tyseley is significantly higher, with potential for a minimum of 100-330
tonnes per year of recycled NdFeB at full capacity , as well as opportunities to expand production of
sintered blocks and finished magnets, and significantly larger scal e-up scenarios currently being
evaluated
London / Vancouver: July 24, 2024 – Mkango Resources Ltd. (AIM/TSX-V: MKA) (the “Company” or “Mkango”)
is pleased to provide an update on the commissioning of the short -loop rare earth magnet recycling and
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manufacturing plant at Tyseley Energy Park in Birmingham, UK. HyProMag limited (“HyProMag”) is the main
industrial partner for the project and exclusive HPMS licencee. HyProMag is 100% owned by Maginito Limited
(“Maginito”), which is 79.4% owned by Mkango and 20.6% owned by CoTec Holdings (“CoTec”).
Start-up of commercial operations is expected in Q1 2025, subject to the remaining equipment being delivered
and infrastructure being installed by the contractors on schedule , as well as completion of the permitting
process. The majority of equipment will initially be owned by the University of Birmingham and utilised by
HyProMag as the main industrial partner for the project and exclusive HPMS licencee. HyProMag has ordered
additional equipment to debottleneck certain parts of the process and is evaluating further ways to optimise and
debottleneck the flow sheet.
William Dawes, Chief Executive of Mkango stated: “We are excited to see the Tyseley development progressing
towards commercial production, which will underpin the international roll-out of HPMS technology into Germany,
USA and other jurisdictions such as Japan. Rare earth magnet recycling is a core focus for Mkango and we are
well positioned given our early move into the sector in January 2020 when we initially invested in HyProMag .
Apart from the capability to develop bespoke recycling solutions for a range of end-of-life products, we can offer
customers a broad suite of recycled NdFeB products with a very low carbon footprint, and as such we are receiving
high levels of interest from potential offtakers and partners.”
Nick Mann , Managing Director of HyProMag stated: “In parallel with ongoing commissioning at Tyseley,
HyProMag has been continuing to utilise the existing pilot facilities at University of Birmingham to expand the
portfolio of magnet grades achievable from end -of-life materials to underpin the transition to commercial
production. By the end of 2024, we are targeting production of over 10,000 finished recycled magnets from pilot
operations covering a range of grades for demonstration in a range of applications by a number of end users. The
whole team is excited to roll out this know-how to the commercial scale equipment which is being commissioned
at the Tyseley plant. HyProMag is proud to be making the UKs first domestically produced sintered magnets in
over twenty years.”
Rare earth magnets play a key role in clean energy technologies including electric vehicles and wind turbine
generators, and they are also a key component in electronic devices including mobile phones, hard disk drives
and loudspeakers. The UK has no domestic source of primary rare earths. The development of domestic sources
of recycled rare earths via HPMS, a homegrown technology, is a significant opportunity for the UK to fast -track
the development of sustainable and competitive rare earth magnet production.
In parallel with the short -loop process being commercialised by HyProMag, Maginito subsidiary, Mkango Rare
Earths UK, recently commissioned a pilot facility for long -loop chemical recycling of HPMS product not suitable
for the short loop process as well as swarf.
Both long-loop and short -loop recycling technologies are underpinned by the patented HPMS technology
developed at University of Birmingham, which liberates magnets from end-of-life scrap streams in a cost effective
and energy efficient way to produce a recycled NdFeB alloy powder , which is manufactured into a magnet (via
the short loop process) or into a rare earth carbonate or oxide (via the long loop chemical process).
HPMS technology is underpinned by approximately US$100 million of research and development funding, and
has major competitive advantages versus other rare earth magnet recycling technologies, which are largely
focused on chemical processes but do not solve the challenges of liberating magnets from end -of-life scrap
streams – HPMS provides the solution.
HyProMag’s HPMS recycling technology was selected by the Minerals Security Partnership (“MSP”) for support
as one of its key projects. The technology was selected because the MSP determined its strong potential to
contribute towards the development of responsible critical mineral supply chains.
HyProMag is also commercialising HPMS recycling technology in Germany and United States , with commercial
production targeted for 2025 and 2026, respectively . HyProMag is also evaluating other jurisdictions, and
recently launched a collaboration with Envipro on rare earth magnet recycling in Japan.
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About Mkango
Mkango is listed on the AIM and the TSX -V. Mkango’s corporate strategy is to become a market leader in the
production of recycled rare earth magnets, alloys and oxides, through its interest in Maginito Limited
(“Maginito”), which is owned 79.4 per cent by Mkango and 20.6 per cent by CoTec, and to develop new
sustainable sources of neodymium, praseodymium, dysprosium and terbium to supply accelerating demand
from electric vehicles, wind turbines and other clean energy technologies.
Maginito holds a 100 per cent interest in HyProMag and a 90 per cent direct and indirect interest (assuming
conversion of Maginito’s convertible loan) in HyProMag GmbH, focused on short loop rare earth magnet
recycling in the UK and Germany, respectively, and a 100 per cent interest in Mkango Rare Earths UK Ltd
(“Mkango UK”), focused on long loop rare earth magnet recycling in the UK via a chemical route.
Maginito and CoTec are also rolling out HyProMag’s recycling technology into the United States via the 50/50
owned HyProMag USA LLC joint venture company. HyProMag is also evaluating other jurisdictions, and recently
launched a collaboration with Envipro on rare earth magnet recycling in Japan.
Mkango also owns the advanced stage Songwe Hill rare earths project and an extensive rare earths, uranium,
tantalum, niobium, rutile, nickel and cobalt exploration portfolio in Malawi, and the Pulawy rare earths
separation project in Poland. Discussions with the Government of Malawi in relation to the Mining Development
Agreement for Songwe Hill are ongoing.
For more information, please visit www.mkango.ca
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been
incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this
announcement via Regulatory Information Service, this inside information is now considered to be in the public
domain.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward -looking statements (within the meaning of that term under applicable
securities laws) with respect to Mkango. Generally, forward looking statements can be identified by the use of
words such as “targeted”, “plans”, “expec ts” or “is expected to”, “scheduled”, “estimates” “intends”,
“anticipates”, “believes”, or variations of such words and phrases, or statements that certain actions, events or
results “can”, “may”, “could”, “would”, “should”, “might” or “will”, occur or be achieved, or the negative
connotations thereof. Readers are cautioned not to place undue reliance on forward -looking statements, as
there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By
their nature, forward-looking statements involve numerous assumptions, known and unknown risks and
uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts,
projections and other forward -looking statements will not occ ur, which may cause actual performance and
results in future periods to differ materially from any estimates or projections of future performance or results
expressed or implied by such forward -looking statements. Such factors and risks include, without li miting the
foregoing, the availability of (or delays in obtaining) financing to develop the various recycling plants in the UK,
Germany, governmental action and other market effects on global demand and pricing for the metals and
associated downstream products for which Mkango is researching and developing, , the ability to scale the HPMS
and chemical recycling technologies to commercial scale, competitors having greater financial capability and
effective competing technologies in the recycling and separati on business of Maginito, availability of scrap
supplies for recycling activities, government regulation (including the impact of environmental and other
regulations) on and the economics in relation to recycling and the development of the various recycling plants
of Maginito and future investments in the United States pursuant to the cooperation agreement between
Maginito and CoTec, the outcome and timing of the completion of the feasibility studies, cost overruns,
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complexities in building and operating the plants, and the positive results of feasibility studies on the various
proposed aspects of Maginito’s activities. The forward -looking statements contained in this news release are
made as of the date of this news release. Except as required by law, the Company disclaims any intention and
assume no obligation to update or revise any forward -looking statements, whether as a result of new
information, future events or otherwise, except as required by applicable law. A dditionally, the Company
undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of
the matters discussed above.
For further information on Mkango, please contact:
Mkango Resources Limited
William Dawes Alexander Lemon
Chief Executive Officer President
[email protected] [email protected]
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
SP Angel Corporate Finance LLP
Nominated Adviser and Joint Broker
Jeff Keating, Caroline Rowe
UK: +44 20 3470 0470
Alternative Resource Capital
Joint Broker
Alex Wood, Keith Dowsing
UK: +44 20 7186 9004/5
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