REG - Mkango Resources Ltd - FIRST PRODUCTION OF RECYCLED MAGNETS AT TYSELEY

Mkango ResourcesAnnouncement

12/12/2023 07:00

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RNS Number : 4010W  Mkango Resources Limited  12 December 2023

 

 

 

 

 

MKANGO RESOURCES
LTD.

550 Burrard
Street
 

Suite
2900
 

Vancouver
 

BC V6C
0A3
 

Canada
 
 

 

FIRST PRODUCTION OF RECYCLED MAGNETS AT TYSELEY ENERGY PARK IN BIRMINGHAM, UK

MAJOR MILESTONE FOR HYPROMAG

 

London / Vancouver: December 12, 2023 - Mkango Resources Ltd. (AIM/TSX-V: MKA)
(the "Company" or "Mkango") is pleased to announce the first production of
recycled rare earth magnets in the United Kingdom on commercial scale magnet
manufacturing equipment in over 20 years, a major milestone in securing
critical raw materials for the energy transition.

 

HIGHLIGHTS:

 

§ First production runs of short-loop recycled rare earth magnets completed
at the Tyseley Energy Park ("Tyseley") rare earths hub in Birmingham, UK -
commercial production targeted for mid-2024

§ First UK  production of sintered rare earth magnets on commercial scale
equipment in over 20 years - new domestic source to catalyse electric vehicle,
wind turbine and other clean technology industries

§ Tyseley scale-up underpinned by successful piloting at University of
Birmingham with over 3,000 finished rare earth magnets produced from piloting
to date

§ Strong interest for recycled magnets from potential customers and for
recycling solutions from original equipment manufacturers ("OEMs"), and
automotive and recycling companies

§ Hydrogen Processing of Magnet Scrap ("HPMS") technology being
commercialised by HyProMag is far cleaner and more energy efficient than
traditional magnet recycling processes

§ HyProMag was selected by the Minerals Security Partnership ("MSP") for
support as one of its key projects given its strong potential to contribute
towards the development of responsible critical mineral supply chains

 

Production of recycled rare earth magnets at Tyseley is being developed by the
University of Birmingham and HyProMag, which is owned by Mkango's 79.4% held
subsidiary, Maginito Limited ("Maginito"). Further production runs are planned
in the coming weeks to provide customer and project partner samples.

Commercial production at Tyseley is targeted for mid-2024, with initial
throughput targeted at 20 tonnes per annum ("tpa") rare earth magnets and
alloys, scaling up to a minimum of 100tpa in subsequent months. Larger scale
up scenarios of up to 1,000tpa are currently being evaluated.

HyProMag is the main industrial partner for the Tyseley development and the
exclusive licencee for underlying HPMS technology, developed at the University
of Birmingham and now being commercialised by HyProMag. HPMS is a
revolutionary new recycling technology that preserves the quality of the
original magnets for reprocessing; a far cleaner and more energy efficient
process than the traditional dismantling, thermal demagnetisation and cleaning
processes and lends itself to automated and efficient processing. The
resulting recycled magnets are being made to recognised industrial grades.

 

The Tyseley development forms the basis for the 2024 development of magnet
recycling and manufacture in Germany by HyProMag GmbH and for the 2025/2026
development of a multi-spoke and hub operation in the United States through
the joint venture with CoTec Holdings Ltd ("CoTec").

Commissioning of the remaining equipment and infrastructure at Tyseley is
expected in the coming weeks, underpinning the subsequent transition to
commercial production. For these initial production runs, the recycled raw
material feed was derived from wind turbine magnets, voice coil assemblies
from hard disk drives and production scrap which was processed through the
existing recycling pilot plant commissioned in 2022 at the University of
Birmingham, and then transported for short loop magnet manufacture at Tyseley.

 

Will Dawes, Chief Executive of Mkango said: "This is a major milestone for the
Company, HyProMag and for the UK, creating a strong platform to advance to
commercial production and for the scale-up and roll-out of HPMS technology
into Germany, United States and other jurisdictions. HyProMag's recycling
technology has major competitive advantages versus other recycling
technologies, and is a key enabler for the cost effective and energy efficient
separation and recycling of rare earth magnets, avoiding the need for
dismantling, and enabling the production of magnets with a significantly
reduced carbon footprint."

Nick Mann, Operations General Manager of HyProMag said: "Beginning production
on commercial scale equipment is very exciting for all of us at HyProMag. We
are receiving strong market interest to begin delivering recycled magnets to
customers at scale - being able to start that over the coming months will be
extremely positive.  We also look forward to implementing the lessons learned
as we see equipment arriving in Germany next year and in the USA soon
afterwards."

 

Professor Allan Walton, Head of the Magnetic Materials Group, University of
Birmingham, and founding Director of HyProMag said: "A huge amount of work has
been carried out over the last year on the existing pilot plant at the
University of Birmingham to produce a spectrum of NdFeB magnets with a range
of magnetic grades. This has allowed us to test recycled magnets in a range of
products for the first time with extremely encouraging results. The
installation of the new equipment at Tyseley Energy Park has allowed us to
prove that these properties can be achieved on a commercial scale for the
first time on automated equipment. This is a massive step forward and
re-introduces commercial sintered magnet manufacturing back into the UK for
the first time in over 20 years".

 

HyProMag is receiving strong interest for recycled magnets from potential
customers, underpinning the transition to commercial operations, and for
recycling solutions from original equipment manufacturers ("OEMs"), and
automotive and recycling companies looking for a low cost and energy efficient
circular solution for magnet recycling that does not require dismantling -
HyProMag's patented HPMS technology provides the solution.

 

The magnets produced at Tyseley were of commercial grade, featuring a square
loop with good coercivity (resistance to demagnetisation) and remanence
(magnetic strength), which are key measures of magnetic performance.

Apart from providing feed during the commissioning phase of the Tyseley
development, the pilot plant at the University of Birmingham has enabled the
testing of a broad variety of scrap streams and the production of a wide range
of products since its commissioning in 2022, generating operating information
to support the scale-up and commercialisation of operations. Furthermore, over
3,000 finished rare earth magnets have been produced to date by HyProMag and
the University of Birmingham from recycled HPMS powder produced for project
partners and potential customers from the pilot scale equipment. These magnets
are being tested in a wide range of applications including multiple
automotive, aerospace, electronics applications, and others planned, providing
valuable marketing and technical information to further support the scale-up
and commercialisation of operations.

 

Apart from the production of finished magnets, the University of Birmingham
pilot plant has also produced alloys for remelt testing and chemical
processing, maximising the flexibility of the product suite and the ability to
process different scrap streams. Mkango is also developing a further pilot
plant at Tyseley for long loop recycling via a chemical process, which
complements the HyProMag short loop recycling process and will also be
commissioned in the coming weeks. Material for chemical processing, including
swarf (the powder produced from grinding and finishing magnets), will either
be processed in-house by Mkango, or in partnership with third parties.

 

About HyProMag

HyProMag (www.hypromag.com (http://www.hypromag.com) ) is 100 per cent owned
by Maginito Limited, which is owned on a 79.4/20.6 basis by Mkango and CoTec.
HyProMag is commercialising rare earth magnet recycling using Hydrogen
Processing of Magnet Scrap ("HPMS") technology in the UK, Germany and United
States, with first production in the UK this year, Germany in 2024 and the
United States in 2025/2026.

 

HPMS technology was developed at the University of Birmingham, 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 company presentation can be viewed via the
following link: HyProMag Corporate Presentation
(https://hypromag.com/wp-content/uploads/2023/09/HyProMag-Corporate-Introduction-28-July-2023.pdf)

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 by the MSP because the MSP determined its strong potential to
contribute towards the development of responsible critical mineral supply
chains.

The MSP was formed in 2022 by 14 governments and aims to ensure adequate
supplies of minerals such as rare earths to meet net zero-carbon goals. It
aims to support public and private sector investments building diverse,
secure, and responsible global critical minerals supply chains.

Having commissioned the UK's first rare earth magnet recycling pilot plant at
the University of Birmingham in 2022, as featured on BBC Midlands News:
https://youtu.be/9P-dsNCffWw?si=pQQeLDv0zV8kdnbM
(https://youtu.be/9P-dsNCffWw?si=pQQeLDv0zV8kdnbM) , alongside the UK's only
facility to make sintered rare earth magnets, HyProMag, together with the
University of Birmingham, are developing a large-scale recycling and magnet
manufacturing plant at Tyseley Energy Park, Birmingham. This £4.3 million
(C$7.3 million) project is being funded by Driving the Electric Revolution, an
Industrial Strategy Challenge Fund challenge delivered by UK Research and
Innovation ("UKRI").

 

About Mkango Resources Ltd.

Mkango's corporate strategy is to develop new sustainable primary and
secondary sources of neodymium, praseodymium, dysprosium and terbium to supply
accelerating demand from electric vehicles, wind turbines and other clean
technologies. This integrated Mine, Refine, Recycle strategy differentiates
Mkango from its peers, uniquely positioning the Company in the rare earths
sector. Mkango is listed on the AIM and the TSX-V.

Mkango is developing its flagship Songwe Hill rare earths project ("Songwe")
in Malawi with a Definitive Feasibility Study completed in July 2022 and an
Environmental, Social and Health Impact Assessment approved by the Government
of Malawi in January 2023. Discussions regarding the Mine Development
Agreement ("MDA") for Songwe Hill are ongoing with the Government of Malawi.

In parallel, Mkango and Grupa Azoty PULAWY, Poland's leading chemical
manufacturer have agreed to work together towards development of a rare earth
separation plant at Pulawy in Poland (the "Pulawy Separation Plant") to
process the purified mixed rare earth carbonate produced at Songwe Hill.

Through its ownership of Maginito (www.maginito.com (http://www.maginito.com)
), Mkango is also developing green technology opportunities in the rare earths
supply chain, encompassing neodymium (NdFeB) magnet recycling as well as
innovative rare earth alloy, magnet, and separation technologies. Maginito is
owned 79.4 per cent by Mkango and 20.6 per cent by CoTec. It is focused on
developing green technology opportunities in the rare earths supply chain,
encompassing neodymium (NdFeB) magnet recycling as well as innovative rare
earth alloy, magnet, and separation 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, and a 100 per cent interest in Mkango Rare Earths UK Ltd ("Mkango
UK"), a company focused on long loop rare earth magnet recycling in the UK via
a chemical route. CoTec and Maginito have also agreed to form a 50:50 joint
venture in relation to the roll-out of rare earth magnet recycling into the
United States, with feasibility study and development costs funded by CoTec.

Mkango also has an extensive exploration portfolio in Malawi, including the
Mchinji rutile exploration project, the Thambani
uranium-tantalum-niobium-zircon project and Chimimbe nickel-cobalt project.

For more information, please visit www.mkango.ca (http://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", "expects" 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 occur, 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 limiting
the foregoing, the availability of (or delays in obtaining) financing to
develop Songwe Hill, and the various recycling palnts in the UK, Germany and
the US as well as the separation plant in Poland, governmental action and
other market effects on global demand and pricing for the metals and
associated downstream products for which Mkango is exploring, researching and
developing, geological, technical and regulatory matters relating to the
development of Songwe Hill, 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
separation business of Maginito and Mkango, 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 and separation plants
of Mkango and 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, complexities in
building and operating the plants, and the positive results of feasibility
studies on the various proposed aspects of Mkango's, Maginito's and CoTec'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. Additionally, 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

will@mkango.ca
alex@mkango.ca

Canada: +1 403 444 5979

www.mkango.ca (http://www.mkango.ca)

@MkangoResources

 

SP Angel Corporate Finance LLP

Nominated Adviser and Joint Broker

Jeff Keating, Kasia Brzozowska

UK: +44 20 3470 0470

 

Alternative Resource Capital

Joint Broker

Alex Wood, Keith Dowsing

UK: +44 20 7186 9004/5

 

Tavistock Communications

PR/IR Adviser

Jos Simson, Cath Drummond

UK: +44 (0) 20 7920 3150

mkango@tavistock.co.uk

 

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