In a pivotal move, Mkango Resources is steering towards becoming a leader in the recycling of rare earth magnets, alloys, and oxides through its majority-owned subsidiary, Maginito. They are spearheading the commercialisation of patented Hydrogen Processing of Magnet Scrap (HPMS) technology, setting the stage for an impressive rollout in the UK and beyond. Mkango recently held a webinar with Share Talk Ltd which can be viewed here.
HyProMag Ltd, owned by Maginito, is geared up to utilise this innovative technology to extract and demagnetise NdFeB (neodymium iron boron) magnets as a powder from end-of-life scrap. This solution is both cost-effective and energy-efficient, providing Mkango with a distinct edge over competitors who predominantly depend on chemical processes. The HPMS process not only facilitates the shortest recycling cycle by enabling direct fabrication of reclaimed magnets into new commercial-grade forms but also overcomes significant economic challenges in the recycling domain.
Australia and Germany are next on the rollout agenda. Mkango is poised to inaugurate operations in the UK by Q1 2025 with plans swiftly advancing for Germany. In the United States, a joint venture aims to implement an expansive ‘hub-and-spoke’ framework to further fuel this recycling capability.
This agreement marks an integral step in Mkango’s ambition to tap into the Asian magnetic rare earths market, especially in Japan, renowned for its innovation in NdFeB magnet applications since the 1980s. By coordinating strategic recycling trials and engaging in joint marketing ventures, Mkango is laying robust foundations for its supply chain strategies.
Adding to the technological momentum, a binding agreement with Inserma Anoia underscores Mkango’s commitment to efficient pre-processing solutions. Inserma’s mobile units, designed for automated extraction of rare-earth magnet-bearing motors, reinforce the sustainability of Mkango’s operations, promising reduced costs and carbon footprints.
Analysts remain optimistic about Mkango’s future, predicting a substantial rise in share price. One forecast suggests Mkango’s share price could reach 63p within the next 12 months, representing a potential increase of over 470% from its current level of around 11p . Such forecasts highlight the market’s growing confidence in Mkango’s strategic direction and technological advances.
The exciting new advancements anticipate a transformational twelve months for Mkango, as it positions itself strategically to lead in recycling vital rare earth magnetic components worldwide.
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