Mkango will Establish a European Rare Earths Hub in Poland in Collaboration with Grupa Azoty Pulawy, Poland's Leading Fertilizer and Chemicals Company

Mkango Resources Ltd. is pleased to announce that Mkango and Grupa Azoty Zakłady Azotowe have agreed to develop a rare earth separation plant in Poland.

A new Polish wholly-owned subsidiary of Mkango, Mkango Polska, has been established. A highly experienced Country Director for Poland, Dr. Jarosław Pączek, has been appointed, together with rare earth separation experts, Carester, and a solid technical advisor and engineer team.

Grupa Azoty PULAWY is part of The Grupa Azoty Group, the European Union’s second-largest nitrogen and compound fertilizers manufacturer and a significant chemicals producer. Its products are exported to over 20 countries worldwide, 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 fertilizer 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 active 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 earth, 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 rare heavy 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 rare heavy earth.
•A 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 products, and marketing opportunities are being evaluated.

Feasibility studies for the Plant are being undertaken parallel with Mkango’s Songwe Hill rare earth project in Malawi and other opportunities, including Mkango’s interest in HyProMag Limited, which is developing short loop recycled rare earth magnets in the UK.

About Mkango
Mkango’s corporate strategy is to develop new sustainable primary and secondary sources of neodymium, praseodymium, dysprosium, and terbium to supply accelerating demand from electric vehicles, wind turbines, and other clean technologies. This integrated ‘mine, refine, recycle’ strategy differentiates Mkango from its peers, uniquely positioning the Company in the rare earth sector.

Mkango is developing the 51% owned Songwe Hill rare earth project in Malawi with the ongoing Feasibility Study funded through a £12 million investment by strategic partner Talaxis Limited. Malawi is known as “The Warm Heart of Africa,” a stable democracy with existing road, rail, power infrastructure, and new infrastructure developments. Following completion of the Feasibility Study, Talaxis has an option to acquire a further 26% interest in Songwe by arranging financing for project development, including funding the equity component thereof.

In parallel, through its 75.5% interest in Maginito Limited, Mkango is developing green technology opportunities in the rare earth supply chain, encompassing neodymium (NdFeB) magnet recycling as well as innovative rare earth alloy, magnet, and separation technologies. Maginito holds a 25% interest in UK rare earth (NdFeB) magnet recycler HyProMag Limited.