Mkango Resources: Songwe Hill & HyProMag Profile

Mkango Resources Ltd. (AIM/TSX-V: MKA) combines one of Africa’s most advanced rare earth development projects with a stake in the UK’s first commercial rare earth magnet recycling operation — a combination that distinguishes it from most junior developers in the sector. Mkango Resources published an updated definitive feasibility study (DFS) for its Songwe Hill project in Malawi in March 2026, delivering a post-tax net present value of US$339 million at a 10% discount rate and an internal rate of return of 24%.

Mkango Resources: Company Overview

Mkango Resources was incorporated in Canada and is dual-listed on AIM in London and the TSX Venture Exchange in Toronto. The company is headquartered in Vancouver, with its primary operating assets in Malawi, the United Kingdom, Poland, and the United States. President Alexander Lemon leads the company; William Dawes serves as CEO.

The business model spans two segments: a primary mining and refining track anchored by Songwe Hill in Malawi and a proposed separation plant in Puławy, Poland; and a recycling track through its 79.4% stake in Maginito Limited, which owns HyProMag. Mkango completed a £12.5 million fundraise in April 2026 at 33 pence per share — significantly oversubscribed — bringing its issued share capital to 387,110,284 shares. The AIM share price has traded around 53.5p as of late April 2026 (subject to change; verify current price before publishing).

Both the Songwe Hill project and the proposed Puławy separation plant have been designated as Strategic Projects under the EU Critical Raw Materials Act, providing regulatory support for offtake and financing discussions in Europe. Mkango is also pursuing a proposed NASDAQ listing of its mining and refining assets via a business combination with Crown PropTech Acquisitions, with a draft Form F-4 registration statement filed confidentially with the SEC in February 2026.

Songwe Hill Rare Earth Project

Songwe Hill is located in the Phalombe District of southern Malawi, approximately 70km from Zomba and 90km from Blantyre. The project targets neodymium, praseodymium, dysprosium, and terbium — the four magnet-critical rare earth elements with the strongest demand outlook from electric vehicle motors and wind turbine generators.

The updated DFS, published 19 March 2026, sets out a 29-year mine life with average annual production of 5,954 tonnes of total rare earth oxides (TREO) during the first five years. This includes approximately 2,000 t/annum of neodymium and praseodymium oxides combined, and 56 t/annum of dysprosium and terbium. Initial capital expenditure is estimated at US$297.8 million (excluding contingency), with an AACE Class 4 accuracy of ±25%. The DFS was led by SENET, a DRA Global company, as principal consultant, with rare earth price forecasts sourced from Adamas Intelligence’s Q4 2025 market outlook. Construction start is targeted for April 2027, with first production planned for Q2 2029.

The project will produce a mixed rare earth carbonate (MREC) for export and further processing, primarily at the proposed Puławy facility in Poland. A pre-feasibility study (PFS) for Puławy, also published 19 March 2026, indicates a separation plant capex of approximately US$212 million and a post-tax NPV of US$779 million at a 10% discount rate, with an IRR approaching 40%. Combined, the Songwe-Puławy integrated supply chain delivers a post-tax NPV of US$892 million on the same basis, according to company-cited figures.

Infrastructure constraints that previously weighed on the project’s economics have improved materially. The Malawi Roads Authority has upgraded a 15km government road from Migowi to the Songwe Hill site to an all-weather gravel road with reinforced concrete culverts and bridges. The project received US$4.6 million in development funding from the US International Development Finance Corporation (DFC) in September 2025. Songwe Hill is among a very small number of rare earth projects globally to have completed a DFS with current market pricing, placing it at the more advanced end of the junior developer spectrum. For context on where Songwe Hill sits relative to other global projects, see our ranking of the top rare earth mining projects and the top rare earth junior stocks.

Maginito and HyProMag: Rare Earth Magnet Recycling

Mkango holds a 79.4% interest in Maginito Limited, with the remaining 20.6% held by CoTec Holdings. Maginito owns 100% of HyProMag Limited (UK), approximately 90% of HyProMag GmbH (Germany), 100% of Mkango Rare Earths UK Ltd, and a 50% interest in HyProMag USA LLC (jointly with CoTec).

HyProMag’s core technology is Hydrogen Processing of Magnet Scrap (HPMS), developed at the University of Birmingham and licensed exclusively to HyProMag. The process liberates rare earth magnets from end-of-life scrap streams using hydrogen, producing a recycled NdFeB alloy powder that can be re-manufactured into sintered magnets via a short-loop route, or processed into rare earth carbonates or oxides via a long-loop chemical route. HPMS is underpinned by approximately US$100 million of research and development funding.

In January 2026, the UK Minister for Industry officially opened HyProMag’s commercial rare earth magnet recycling and manufacturing facility at Tyseley Energy Park in Birmingham — the first commercial rare earth magnet production in the United Kingdom in 25 years. A second facility at Pforzheim, Germany completed its first commissioning runs in April 2026. In the United States, HyProMag USA is progressing hub-and-spoke facilities in Texas, South Carolina, and Nevada, targeting a tripling of US capacity by 2029. In April 2026, Siemens AG showcased a SIMOTICS servomotor rotor incorporating recycled NdFeB magnets produced by HyProMag at Hannover Messe. Magnet samples have been supplied to more than 20 potential customers across motors, medical devices, and audio products. This recycling platform is distinct from the overwhelming majority of junior rare earth companies, which are pure-play mining developers. For further context on rare earth recycling technology, see our overview of the rare earth recycling and circular economy landscape.

Mkango Resources in the Global REE Market

Africa contributes a marginal share of current global rare earth production, which remains heavily concentrated in China. Songwe Hill is among the few African rare earth projects to have reached the definitive feasibility stage, and one of even fewer targeting the magnet-critical NdPr basket that commands the strongest near-term demand growth. Neodymium and praseodymium prices have moved higher through early 2026, improving project economics relative to prior feasibility assumptions.

Within the Africa-focused junior developer peer group, Pensana (LSE: PRE) is the most directly comparable company, also targeting NdPr and pursuing a European processing strategy. Mkango’s combination of a primary mining project, a European separation plant, and an operating recycling business across the UK, Germany, and the US gives it a broader commercial footprint than most peers at equivalent development stages.

The proposed NASDAQ listing of Mkango Rare Earths Limited, which would hold the Songwe and Puławy assets, is intended to increase visibility among US institutional investors and may widen the financing options available ahead of a targeted construction decision in 2027. This structure would leave Mkango as the listed holding entity retaining its recycling business via Maginito.

Company Snapshot

Mkango Resources investor relations | USGS Rare Earths Statistics and Information

This article is for informational purposes only and does not constitute investment advice. Share prices and project economics are subject to change without notice. Investors should consult company filings on AIM and SEDAR+ for current disclosure.