Mkango Resources has partnered with Grupa Azoty Zakłady Azotowe ”Pulawy” to develop a rare earth separation plant in Poland. The plant will produce neodymium, praseodymium, dysprosium, terbium, and lanthanum cerium carbonate, which are used in electric vehicles, wind turbines, and other green technologies. The site, located in a Polish Special Economic Zone, offers excellent access to European and international markets. The development of the plant will strengthen Europe's security of supply for rare earths and contribute to the region's green transition. Feasibility studies for the plant will be conducted alongside Mkango's Songwe Hill rare earths project in Malawi.
London / Vancouver - Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company" or "Mkango") is pleased to announce that Mkango and Grupa Azoty Zakłady Azotowe ”Pulawy” S.A. (“Grupa Azoty PULAWY”) (together the “Parties”) have agreed to work together towards development of a rare earth separation plant (the "Plant”) in Poland.
A new Polish wholly owned subsidiary of Mkango, Mkango Polska, has been established and a highly experienced Country Director for Poland, Dr Jarosław Pączek, has been appointed, together with rare earth separation experts, Carester, and a strong team of technical advisors and engineers.
Grupa Azoty PULAWY (Warsaw Stock Exchange: ZAP) is part of The Grupa Azoty Group, the European Union’s second largest manufacturer of nitrogen and compound fertilizers, and a major chemicals producer. Its products are exported to over 20 countries around the world, including Europe, the Americas and Asia.
The Parties have signed an exclusive lease option agreement for a site adjacent to Grupa Azoty PULAWY’s large scale fertiliser and chemicals complex at Pulawy in Poland, which provides excellent infrastructure, access to reagents and utilities on site, and an attractive operating environment, resulting in a highly competitive operating cost position for the Plant, based on scoping studies to date.
Located within a Polish Special Economic Zone, the site provides excellent access to European and international markets. Production from the Plant will strengthen Europe’s security of supply for rare earths, used in electric vehicles, wind turbines and other green technology and strategic applications, and aligns with European initiatives to create more robust, diversified supply chains.
Development of the Plant is expected to bring significant benefits to the Mkango group:
Higher value-added products with increased margins – targeting 2,000 tonnes per year of separated neodymium (Nd) / praseodymium (Pr) oxides, and 50 tonnes per year dysprosium (Dy) and terbium (Tb) oxides in a heavy rare earth enriched carbonate
Greater integration – plant development fully underpinned by sustainably sourced, purified mixed rare earth carbonate from Mkango’s Songwe Hill operations, with other synergies being evaluated
Increased marketing flexibility with a broader range of potential customers – future opportunities to produce and market separated heavy rare earths
Catalyst for regional growth and the green transition – potential for further downstream developments and related businesses, including renewables, creating additional jobs in the region
Engagement with financial institutions is underway to accelerate development, and additional strategic partnerships, downstream developments and marketing opportunities are being evaluated.
Feasibility studies for the Plant are being undertaken in parallel with Mkango’s Songwe Hill rare earths project (“Songwe”) in Malawi and other opportunities, including Mkango’s interest in HyProMag Limited, which is developing production of short loop recycled rare earth magnets in the UK.
William Dawes, Chief Executive of Mkango stated: “Development of this Plant will underline Mkango’s unique positioning in the rare earths sector. Our integrated “mine, refine, recycle” strategy, encompassing sustainably sourced light (NdPr) and heavy (Dy/Tb) rare earths from Malawi and rare earth magnet (NdFeB) recycling in the UK, via our interest in HyProMag, is now enhanced by the opportunity to create a rare earths separation and downstream hub in Poland, working with one of Europe’s largest chemical and fertilizer companies.
“Rare earths are a vital component of magnets required in many technologies needed for the green energy transition. Therefore, their security of supply is becoming increasingly important to governments worldwide, especially in Europe and the US. We have carried out extensive due diligence on the site and believe the development of the Plant in Poland will enhance the sustainable supply of rare earths into Europe, as well as bringing significant benefits to the region, creating new jobs and potential, additional, downstream developments.
“We very much look forward to working with Grupa Azoty PULAWY and our partners worldwide to create value for all stakeholders and contribute to development of a more robust and sustainable rare earths supply chain.”
Andrzej Skwarek, Management Board Member of Grupa Azoty PULAWY stated: “We look forward to working together with Mkango on this exciting project, which complements the adjacent activities of Grupa Azoty PULAWY, benefiting from synergies in relation to reagents, by-products, utilities and infrastructure. As an industry leader in Poland, Grupa Azoty PULAWY welcomes this potential new development to the region and will continue to support Mkango as it progresses through the feasibility studies.”
Jarosław Pączek, Mkango’s Country Director for Poland stated: “This is a very exciting development for Poland at a time when Europe is focused on strengthening supply chains for critical materials and transitioning to a greener economy. The creation of a new European hub for rare earths at the heart of central Europe in Poland complements battery, electric vehicle and renewable energy developments in the region, with a site strategically located for European trade and transport routes and benefiting from plug and play access to reagents and utilities. I look forward to working with Mkango and Grupa Azoty PULAWY on this groundbreaking project for Poland and Europe.”
Pulawy Rare Earths Separation Plant
The Plant is expected to initially produce approximately 2,000 tonnes per year of neodymium, praseodymium and / or didymium (NdPr) oxides as well as a heavy rare earth enriched carbonate, containing approximately 50 tonnes per year dysprosium and terbium oxides. It is also expected to produce lanthanum cerium carbonate. Mkango is evaluating marketing and processing options for the heavy rare earth enriched carbonate and lanthanum cerium carbonate. The Plant will use best-in-class, conventional and proven technology, and will benefit from excellent rail and road infrastructure as well as the direct supply of the required processing reagents from Grupa Azoty PULAWY. It will also have access to a local skilled workforce, on-site engineering and project development expertise and R&D science institutes.
Based on scoping studies undertaken to date, the Plant is expected to have highly competitive operating costs.
Feasibility Studies and Technical Team
Extensive scoping studies and due diligence has been completed to date on the Plant site. Further feasibility studies will be completed by Carester, SENET (a DRA Global Group Company) and a local engineering firm, Prozap, together with support from Grupa Azoty PULAWY. The Carester team has extensive operating and advisory experience in rare earth separation at industrial scale, and will also provide ongoing technical support during construction and operation of the Plant. Mkango is also working closely with ANSTO to optimise feed specifications for the Plant.
Mkango will also be supported by its Chief Technical Advisor, Mike Vaisey, formerly Vice President, Research and Technology, for Lynas Corporation. Mr Vaisey has 25 years of international experience in the mining and chemical industries, in senior operational and technical development roles, with a track record of successful technology commercialisation.
Development of the Plant is expected to be underpinned by the sustainable supply of a purified mixed rare earth carbonate from Mkango’s Songwe Hill project in Malawi. Mkango will also evaluate the potential to process third party feeds.
The feasibility studies for the Plant will run in parallel with those for the Songwe Hill rare earths project.
The Company will seek to maximise the renewable energy content and minimise the carbon impact of the developments in both Malawi and Poland, as part of the feasibility studies.
Environmental and Social Benefits
In addition to synergies with the existing operations, the Plant is expected to bring significant benefits to Poland and the EU, including additional jobs and potential for further downstream value-added developments. It is also expected to support the development of a more robust supply chain for rare earths in Europe and other markets, catalysing the green transition globally.
Sustainability is integral to Mkango’s vision and the Company intends to implement robust sustainability policies in Poland to support the Company’s ethos of actively engaging with local communities as well as implementing and supporting community-based initiatives.