Mkango and CoTec appoint lead engineers for DFW hub project
By Josh White
Date: Tuesday 22 Apr 2025
(Sharecast News) - Mkango Resources, alongside its partner CoTec Holdings, announced the appointment of PegasusTSI and BBA USA on Tuesday, to provide engineering, procurement and construction management (EPCM) services for the HyProMag USA rare earth magnet recycling and manufacturing project in the Dallas-Fort Worth area.
The AIM-traded firm said the appointment followed the completion of a base case feasibility study in November, which assigned the project a net present value of $262m based on current prices, and $503m using forecast prices.
It said the project would be executed over a 24-month timeline from PegasusTSI's office in Tampa, Florida, supported by an owner's team comprising representatives from HyProMag, CoTec and Mkango.
First revenue from the Dallas-Fort Worth facility was expected in the first half of 2027, with a notice to proceed anticipated in the second half of 2025, pending completion of detailed engineering and value engineering phases.
HyProMag USA aims to meet 10% of US domestic demand for neodymium-iron-boron (NdFeB) magnets within five years of commissioning the plant.
The DFW hub was part of broader efforts by Mkango and CoTec to localise and scale rare earth magnet production in North America.
"We are very excited to see HyProMag USA's groundbreaking rare earth magnet recycling and manufacturing project proceed to the next stage of development," said Mkango chief executive officer Will Dawes.
"This project will make a major contribution to the creation of a more robust rare earth supply chain and a strong platform for further expansion in North America, complementing the ongoing HyProMag developments in the UK and Germany."
At 0948 BST, shares in Mkango Resources were up 2.46% at 19.98p.
Reporting by Josh White for Sharecast.com.
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