(Alliance News) - Mkango Resources PLC on Wednesday said that its subsidiary will partner with CoTec Holdings Corp to roll out scrap magnetic recycling technology in the US.
Shares in Mkango were down 9.3% at 9.30 pence each in London on Wednesday morning.
Maginito Ltd, a subsidiary of the Vancouver-based mineral exploration and development company, will join with CoTec to promote HyProMag Ltd's technology. HyProMag is a rare earth magnet recycling company in which Maginito holds a 100% stake, and is commercialising its technology in the UK, Germany and US.
The 50-50 joint venture will initially involve a bankable feasibility study using three hydrogen processing of magnet scrap vessels and a magnet manufacturing hub. Following this, Mkango and CoTec will decide whether to proceed with the construction of the US project.
Revenue from the project is targeted for either 2025 or 2026.
The pair recently issued a request for proposal process from "leading engineering, procurement and construction management providers", and has ordered three HPMS reactors to expedite the US project.
CoTec Chief Executive Officer Julian Treger said: "We are looking forward to working with leading EPCM providers to design and build these facilities using HyProMag's considerable experience from the plants being developed in the UK and in Germany. CoTec and Mkango are focused on delivery and will be exploring US Government funding and strategic partnerships for feed supply and rare earth element magnet offtake in the first half of 2024".
Will Dawes, CEO of Mkango, said: "We see the US as a core component of our growth strategy and look forward to progressing the US feasibility study over the course of the year, in parallel with further development of operations in the UK, Germany and other jurisdictions".
By Hugh Cameron, Alliance News reporter
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Mkango Res (MKA)