Mkango, CoTec seek EPCM provider for HyProMag USA project

(Sharecast News) - Mkango Resources, alongside its partner CoTec Holdings, initiated the process to select an engineering, procurement, and construction management (EPCM) provider for HyProMag USA's rare earth magnet recycling and manufacturing project in the US, it announced on Thursday. The AIM-traded company said the project was being launched on the back of a positive feasibility study published on 25 November, which outlined strong economics and the potential to establish a major domestic source of recycled rare earth magnets.

It said the detailed engineering phase would develop sufficient design work to support an AACE class 1 capital cost estimate, refining the feasibility study results.

The phase would also assist with final site selection, expected to be completed in the first half of 2025, enabling site permitting to proceed according to schedule.

Mkango said the project aimed to achieve initial revenue generation by the first quarter of 2027.

A final decision on the project's procurement and construction was anticipated in mid-2025, upon completion of the detailed engineering phase.

HyProMag is owned by Maginito, which itself is owned on a 79.4%-20.6% basis by Mkango and CoTec, respectively, while HyProMag USA is owned 50-50 by CoTec and Maginito.

"Momentum continues on the project following the positive results from the feasibility study announced last week, and we are very excited to be pushing forward with the EPCM selection process," said Mkango chief executive officer Will Dawes.

"This important project will help catalyze further development of a robust domestic ecosystem for rare earth magnet recycling and manufacturing in the United States, and will be underpinned by rigorous design and engineering standards.

"We look forward to working with the project team as we move to the next stage of development."

At 1312 GMT, shares in Mkango Resources were up 3.53% at 8.8p.

Reporting by Josh White for Sharecast.com.