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(Sharecast News) - Mkango Resources said on Monday that its US rare earth magnet recycling venture HyProMag USA has completed expansion concept studies and has begun pre-feasibility work on new plants in South Carolina and Nevada, supporting a pathway to triple US production capacity by 2029 and reinforcing plans for a future US public listing.
The AIM- and TSX Venture Exchange-listed company said the studies envisaged increasing total neodymium-iron-boron (NdFeB) magnet and alloy production capacity to 4,656 metric tonnes per annum from 1,552 tonnes, through a three-hub model spanning Texas, South Carolina and Nevada.
It said the expansion would build on its first US facility at the Ironhead Commerce Center in the Dallas-Fort Worth area, where detailed engineering design had already been completed.
Based on forecast market prices, the expanded developments support a post-tax net present value of more than $2bn and a real internal rate of return of 38.7%, according to the concept study, underpinning the decision to advance to pre-feasibility studies.
At current prices, the expanded US platform would still generate a post-tax net present value of $1.14bn with a real internal rate of return of 27.6%.
The project schedule assumed commissioning of three plants between 2027 and 2029, excluding any expansion of the Texas hub.
Mkango said the concept studies focused on modular production systems ranging from alloy powder production through to fully integrated magnet manufacturing and finishing.
At full scale, the expanded platform was expected to produce 2,823 tonnes per annum of recycled sintered NdFeB magnets and 1,833 tonnes per annum of associated co-products over a 40-year operating life, while supporting around 300 skilled manufacturing jobs.
Feedstock security would be supported by co-location with Intelligent Lifecycle Solutions facilities in South Carolina and Nevada.
"HyProMag USA continues to develop a strong platform for further growth in the United States, and the recently completed expansion concept study further validates the Company's business model and strategic positioning," said Will Dawes, chief executive of Mkango Resources.
He added that, alongside commissioning work in the UK and Germany, HyProMag USA was progressing rapidly towards first production in 2027, contributing to the development of more resilient global rare earth supply chains.
Julian Treger, chief executive of CoTec, said the study demonstrated that the Texas hub was "the foundation of a scalable US manufacturing platform", adding that the modular design would allow capacity to be replicated efficiently and accelerate domestic supply chain resilience as HyProMag USA moves towards commercial operations and deeper engagement with capital markets.
HyProMag USA is a 50-50 joint venture between CoTec and HyProMag, which is owned by Maginito, itself 79.4% owned by Mkango.
The business is focused on short-loop recycling of rare earth magnets using hydrogen processing technology developed at the University of Birmingham, targeting secure domestic supply for sectors including AI infrastructure, defence, electric vehicles and advanced electronics.
At 1055 GMT, shares in Mkango Resources were up 3.26% at 44.4p.
Reporting by Josh White for Sharecast.com.