Mkango Partners Grupa to Build Rare Earths Hub in Poland

Mkango Partners Grupa to Build Rare Earths Hub in Poland

Mkango Resources Ltd. is pleased to announce that the company and Grupa Azoty Zakłady Azotowe, a Polish Leading Fertilizer and Chemicals Company, have agreed to work together towards the development of a rare earths separation plant in Poland.

A new Polish wholly-owned subsidiary of Mkango, has been established and has appointed an experienced Polish country director, Dr. Jarosław Pączek, as well as rare earth separation expert Carester and a strong team of technical consultants and engineers.

Grupa Azoty PULAWY is part of the Grupa Azoty Group, which is the second largest manufacturer of nitrogen and compound fertilizers in the EU, and a major chemical producer. Its products are exported to more than 20 countries in the world including Europe, America and Asia.

The two parties signed an exclusive lease option agreement for the site adjacent to PULAWY's large fertilizer and chemical complex in Pulawy, 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.

The site is located in the Polish Special Economic Zone, which facilitates access to European and international markets. The production of the plant will strengthen Europe’s security of the supply of rare earths for electric vehicles, wind turbines and other green technologies and strategic applications, and is consistent with Europe's initiative to create a stronger and more diverse supply chain.

The feasibility study of the plant is being conducted concurrently with Songwe Hill rare earth project in Malawiand other opportunities, including Mkango’s interest in HyProMag Limited, which is developing the production of short-cycle recycled rare earth magnets in the UK.

William Dawes, CEO of Mkango, said: "The development of this plant will highlight the company's unique positioning in the rare earth sector. Through our interest in HyProMag, our comprehensive “mine, refine, and recycle” strategy includes sustainable development from Malawi. The procurement of light (NdPr) and heavy (Dy/Tb) rare earths and the recycling of rare earth magnets (NdFeB) from the United Kingdom has now been strengthened through cooperation with one of Europe's largest chemical and fertilizer companies to establish a rare earth separation and downstream hub in Poland opportunity.

The plant was initially expected to produce approximately 2,000 tons of neodymium, praseodymium, and/or praseodymium (NdPr) oxides, and rare earth-rich heavy carbonates annually, of which approximately 50 tons of dysprosium and terbium oxides are produced annually. It is also expected to produce lanthanum cerium carbonate. Mkango is evaluating marketing and processing options for carbonates rich in heavy rare earths and lanthanum cerium carbonates.

The rare earths plant in Poland will use first-class, conventional and proven technology, and will benefit from excellent rail and road infrastructure and Grupa Azoty PULAWY directly supply the required processing reagents. It can also access local skilled labor, on-site engineering and project development expertise, and R&D scientific institutions.

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