Mkango announces start of feed stockpiling for HyProMag USA

(Sharecast News) - Mkango Resources and CoTec Holdings said on Tuesday that HyProMag USA had started stockpiling feedstock through a supply and pre-processing agreement with electronics recycling company Intelligent Lifecycle Solutions (ILS), marking a key milestone for its rare earth magnet recycling project in the United States. The stockpiling would take place at ILS facilities in South Carolina and Nevada ahead of the planned commissioning of HyProMag USA's recycling and manufacturing plant in Dallas-Fort Worth, Texas.

Pre-processing was expected to begin before the end of 2025, with the goal of securing six to twelve months of feedstock before the plant starts operations.

"This is another major milestone in the execution of the HyProMag USA project," said Julian Treger, CEO of CoTec.

"Securing feedstock is key to the success of any recycling business and we are pleased to work with credible companies such as ILS.

"HyProMag USA aims to become a major contributor to the US supply chain of rare earth magnets, a critical input for accelerating the reshoring of the US industrial base."

Mkango CEO Will Dawes added that the agreement with ILS and start of stockpiling of NdFeB feedstock underpinned the "rapid deployment" of 'Hydrogen Processing of Magnet Scrap' (HPMS) and associated magnet manufacturing into the United States by HyProMag USA, with detailed engineering well underway following a positive feasibility study last year.

"These developments will catalyse development of a more robust rare earth supply chain, whilst unlocking new NdFeB scrap sources in the United States and generating significant value for HyProMag USA and its stakeholders."

At 1047 BST, shares in Mkango Resources were flat at 41.75p.

Reporting by Josh White for Sharecast.com.