Mkango announces US HyProMag partnership
By Josh White
Date: Wednesday 03 Jan 2024
(Sharecast News) - Mkango Resources, alongside CoTec Holdings, announced a partnership with Maginito on Wednesday to establish HyProMag USA as a 50-50 joint venture entity.
The AIM-traded firm said the collaboration would introduce HyProMag's hydrogen processing of magnet scrap (HPMS) recycling technology into the US.
HyProMag, which Maginito wholly owns, is currently commercialising rare earth magnet recycling in the UK, Germany, and now the US.
The ownership structure of Maginito comprises a 79.4% stake held by Mkango and a 20.6% interest held by CoTec, while the joint venture is expected to generate revenue from its operations in 2025-2026.
Mkango said the primary objective of HyProMag USA would be conducting a bankable feasibility study using a hub and spoke model involving three HPMS vessels and one magnet manufacturing hub.
To expedite the development of the US project, the joint venture launched a 'request for proposal' process targeting leading engineering, procurement and construction management (EPCM) providers.
It also ordered three HPMS reactors to support the project's progress.
Upon completion of the feasibility study, CoTec and Mkango will collaboratively decide whether to proceed with the construction of the US project.
"We see the United States as a core component of our growth strategy and look forward to progressing the US feasibility study over the course of the year, in parallel with further development of operations in the UK, Germany and other jurisdictions," said Mkango chief executive officer Will Dawes.
"HyProMag's recycling technology has major competitive advantages versus other recycling technologies and is a key enabler for cost-effective and energy-efficient separation, recycling and production of rare earth magnets with a significantly reduced carbon footprint.
"We are receiving strong interest for recycled magnets from potential customers and for recycling solutions from original equipment manufacturers and automotive and recycling companies."
At 1123 GMT, shares in Mkango Resources were down 3.95% at 9.85p.
Reporting by Josh White for Sharecast.com.
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