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US involvement looking promising:
https://www.nyasatimes.com/chakwera-hosts-us-senators-hails-strong-and-enduring-us-malawi-partnership-during-talks/
Some concerns over budget re mining sector:
https://www.nyasatimes.com/dpp-mp-lipipa-reiterates-his-reservation-with-2024-25-budget-its-populist-but-unrealistic/
I just imagine a 100% recycled magnet economy in the EU and HyproMag potentially being the solution if they now can produce 100% recycled and effective magnets with no need for any raw material input...surely HyproMag is going to be getting a lot of attention from manufacturers that utilise RE magnets in their products now the CRMA is passed. They have legal obligations regarding recycling....
Still media silence from the guys but I reckon a huge amount is going on.... Whilst share wise I'll just nibble away like I have today :)
And:
'Recyclability of Permanent Magnets
One of the measures the Regulation provides for, in Article 27, is the recyclability of permanent magnets. Any company placing MRI devices, wind energy generators, industrial robots, motor vehicles, light means of transport, cooling generators, heat pumps, electric motors, on the market, even if they are integrated in washing machines, tumble dryers, microwaves, vacuum cleaners or dishwashers, will have to ensure that those products bear a label indicating what type of permanent magnets they incorporate, such as neodymium-iron-boron, samarium-cobalt, aluminium-nickel-cobalt or ferrite.
Most importantly, the Regulation says the following information regarding permanent magnets in products will have to be included in the digital product passport (exceptions may apply, for more information refer to Article 27, Paragraph 5):
Contact information of the producer.
Weight, location and chemical composition of all individual permanent magnets included in the product as well as the presence and type of magnet coatings, glues and additives used.
Information enabling access and removal of all permanent magnets incorporated in the product (incl. steps, tools, technologies needed).
Having easy access to these details will not only ensure the longevity of certain household products and promote refurbishment and repair practices but assist raw material extraction processes.
Magnets are vital components found in various household electronics (e.g. speakers, electric motors etc.) and are essential to tap into renewable energy sources. Speakers, for example, produce sound by the interaction of a permanent magnet and electromagnet. While wind turbines use magnets in their generators which play a crucial role in converting the mechanical energy from the spinning blades into electrical energy. In the case of heat pumps, magnets can be found in the electric motors that drive the pumps or fans. Being able to recycle these “common products” is a must to recover valuable materials such as neodymium.
Reinforcing this the importance and scarcity of critical raw materials, after 31 December 2030, a delegated act may lay down minimum recycled content for neodymium, dysprosium, praseodymium, terbium, boron, samarium, nickel and cobalt in the permanent magnet incorporated in the products mentioned above'
https://ce-rise.eu/news/permanent-magnets-digital-product-passport/
'100% Recycled Magnets made with the HPMS Process
by Abeshaa Mahendran of Hypromag
Hypromag utilises the patented HPMS (Hydrogen Processing of Magnetic Scrap) process in order to liberate NdFeB magnet material from end of life components. Through the use of the HPMS process and recycling back to sintered magnets, there is a reduction of 98% in human toxicity and 85% of the energy used when compared to primary production. HyProMag’s current magnet manufacturing scheme uses a small addition of virgin material to ensure the retention of magnetic properties. The work presented herein explores the use of 100% secondary material for creation of magnets, for use in specific applications. Unlocking the potential for 100% recycled magnets has significant downstream benefits, while simultaneously unlocking additional opportunities in the marketplace.'
https://ukmagsoc.org/events/navigating-the-critical-materials-landscape-from-rare-earth-free-magnets-to-magnet-recycling/
Agree. Not least because talk of real Songwe value is simply for the birds right now.
Offer to sell it to China. Let it be known in the media that this is being considered.
Then perhaps 'our' team will show some backbone and ensure the win for our side. A victory for us geo-politically and as shareholders.
Or we can continue on this sunk cost fallacy. Pun intended.
Wonder how long it will be until people are bemoaning the fact that they could have bought shares in the 6s?
I'm sure many of us are in two minds about mining in Malawi particularly. On the cusp of something great or bogged down in African bureaucracy on a hiding to nothing. The strategic review is probably the right thing to do. It should at least bring the issues into focus and better enable some potentially tough decisions to be made. Imo.
Once again the board have demonstrated that they will avoid dilution of existing shareholders wherever possible.
It's been a consistent theme since day 1 and long may it continue.
Yep - everyone would love a decent return now but they're playing the long game - either suck it up or invest elsewhere.
I hope we keep Songwe and every other tenement but things change - if we can't get a deal that's beneficial then, regretfully, move on. The recycling is going to ne a monster in time
Indeed but worth pointing out that any firesale would likely be well in excess of the current mcap.
Nooooòoooo. 600million NPV for 20million?
There's no rush.
The review will be timings only. The plan will focus on recycle first.
A successful rollout means the mine could be financed internally.
I'd support that.
Use the money to get more recycling plants going in Europe.
Sell it for at least what it has put into it.
£20m+?
Stated :-
Mkango is launching a review of strategic options for its advanced stage Songwe Hill Rare Earth Project in Malawi.
Wonder what strategic means for them in the absence of an MDA anywhere?
Possibly missing my point. Even with MDA this is the worst time to privately finance a mine. Other governments e.g. China would finance the mine irrespective of the economics of a given moment.
Uk gov could back projects and with provision to release funds on a milestone basis. The money though needs to be ring fenced in the early stages.
Germany are doing it with hypromag, where magnito put in x and they grant match it.
Currently it's a load of balls that you must seek financing post milestones
PS: Make hay
The BOD told you that funding would be "unlocked" once the MDA lands - nobody is funding a mine project without an MDA ...
The UK always acts like this... we have amazing University techs that get piecemeal grants that take them so far but no further, and then someone swoops in and buys that UK IP. for a song... As in here, I will not be surprised to see US GOV or US DOD completely pay for all 3 US recycling plants taking the company right to the point of commercial viability so $50 million straight in no probs but from UK you are lucky to get near a million even though as you say this is a no brainer and needed for UK security and indendence
Https://mwnation.com/mining-ict-to-anchor-gdp-growth-report/
Malawi government have shown immaturity over the last few years with x2 promises of timrlunes for MDA that have elelspaed.
I suspect this will now change due to high focus as heads will roll otherwise
Problem now, imho is that MKA hold leverage more than ever. With a strategic review ongoing and refocus upon recycling profitability and revenue streams, there is no rush.
Also, for me, it beggars belief that UK governments, knowing that REE are critical elements, are not ring fencing funding.
1billion investment could see the likes of MKA and PRE unleash full mine, refine and in addition for MKA recycle.
At the moment UK gov are on the sidelines with company's line this and PRE fighting over crappy grants such as the ATF for sub 5 mill.
Crazy.
Adding more here tomorrow when my salary lands. No brainer, financed to revenue.
Hopefully UK govt input will help MKA, particularly if the "technical assistance" to Malawi is to tell them to sign the effing MDA. It's been a long time and we as MKA shareholders have already stumped up big money on advice for Malawi from at least 2 independent law firms eg. They can't possibly need any more advice or assistance surely. Just get on with it.
She is probably just an intermediator for the UK Gov it was just the mining angle that caught my eye... I have few doubts behind the scenes Mkango and no doubts others such as Sovereign (who has more to lose ) will have been lobbying for some friendly political pressure to be applied...
Anyway, the Malawian Budget was just passed through so I suppose now the Malawians need to get down to business or go bust!
I just hope she is a tougher negotiator than she looks. Should never judge a book by its cover, of course, and I have met some outstanding business people, whose meek appearances often acted to their/their employers great advantage....but that was the private sector.
I am sure there are some people of such qualities in the public sector (albeit not many, lol). Hopefully she is one of them.
Well, I suppose there are two things there: a straightforward assist to a friend with little mining experience and a funding support carrot -we need to see this from you and you will get this from us...
I think we are all rightly very sceptical of this Malawi Gov being able to do anything...
'In her remarks, Wereke-Brobby said the British government alongside other development partners remain willing to support Malawi to achieve its development goals, including through technical assistance that could help Malawi secure beneficial deals with mining companies.
She also said the development partners have already lined up various forms of financial support to Malawi as long as the country remains on track with the International Monetary Fund.'
Yeah, I only want to see UK government involvement here if they do it the way China does.
Clue: it always ends up being a good deal for China, based on several examples that I have seen first hand in a few other African states.
Otherwise, no.
British Govt as honest broker would be good, but there's a potential downside and/or conflict to them sticking their oar in to "help Malawi secure a beneficial deal" with companies with UK stakeholders like, er, MKA. Don't rock the MDA boat now.
'British Deputy High Commissioner to Malawi Ms. Olympia Wereko-Brobby today met with National Planning Commission (NPC) Director General Dr. Thomas Munthali at NPC offices in Lilongwe where they discussed various issues, including how the British government and other development partners can support the accelerated implementation of the Malawi 2063 First 10-Year Implementation Plan.
The discussion specifically focused on the areas of mining, megafarms, carbon credits and macro-economic management.
In her remarks, Wereke-Brobby said the British government alongside other development partners remain willing to support Malawi to achieve its development goals, including through technical assistance that could help Malawi secure beneficial deals with mining companies.
She also said the development partners have already lined up various forms of financial support to Malawi as long as the country remains on track with the International Monetary Fund.
On his part, Munthali urged the British government and other development partners to support Malawi in improving its production sectors as that is the only way the country can boost the economy and generate resource required to reduce its debt and increase fiscal space.'
https://npc.mw/2024/03/british-envoy-meets-npc-boss/