Revolutionizing Malawi’s Economy: Mkango Pioneers Groundbreaking Rare Earth Magnet Facility
Key Business Points
- Rare earth magnet facility launch: Mkango Resources Limited has welcomed the launch of a rare earth magnet facility in the UK, which is expected to transform rare earth supply chains and provide a platform for further scale-up and international expansion.
- Investor confidence boost: The development is likely to boost investor confidence in the Songwe Hill Rare Earth Project in Phalombe District, which has already signed a mining development agreement (MDA) with the Malawi Government.
- Mine development funding: Mkango Resources Limited is close to securing a $100 million direct loan from the US Government-owned International Development Finance Corporation (DFC) for mine development, which will support the project’s progression to the production stage.
Mkango Resources Limited, the owner of the advanced-stage Songwe Hill Rare Earth Project in Phalombe District, has lauded the launch of a rare earth magnet facility in the UK as a landmark achievement. The facility can recover over 400 kilogrammes of rare earth alloy per batch and produce new magnets from the recycled rare earth alloy at a capacity of 100 metric tonnes per annum. This development is expected to provide a strong platform for further scale-up in the UK and international roll-out, with other countries being assessed for further expansion. According to Mkango Resources Limited chief executive officer William Dawes, this development is transformational for rare earth supply chains.
The Songwe Hill Rare Earth Project has been making significant progress, with exploration works ongoing in Phalombe. The project has already signed a mining development agreement (MDA) with the Malawi Government, which holds a 10 percent stake in the firm. Other key components of the MDA include a five percent royalty of gross revenue and 10 years tax loss carry forward. Geologist Ignatius Kamwanje believes that the launch of the rare earth magnet facility will boost investor confidence in the mining project. This is a significant development for Malawi’s business community, as it is expected to attract more investment and create opportunities for local entrepreneurs, particularly in the mining sector, where uziru waukada (mining business) is a growing industry.
The project is one of the few rare earths projects to have progressed to the definitive feasibility stage, with an expected mine life of 18 years. Mkango Resources Limited is close to securing a $100 million direct loan from the US Government-owned International Development Finance Corporation (DFC) for mine development. This funding will support the project’s progression to the production stage and is a significant milestone for the company. As the project moves forward, it is likely to create opportunities for local businesses and entrepreneurs to get involved in the supply chain, from mabulanda (transportation) to malo aukada (mining equipment). With the launch of the rare earth magnet facility, Mkango Resources Limited is well-positioned to take advantage of the growing demand for rare earths and contribute to Malawi’s economic growth.
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