Mkango Resources (LSE:MKA) has released updated feasibility results for its Songwe Hill rare earths project in Malawi alongside a pre-feasibility study for a proposed separation facility in Puławy, Poland. The studies highlight both developments as significant components of the emerging global supply chain for magnet metals. Songwe Hill is planned as an 18-year operation producing a mixed rare earth carbonate containing high-value elements such as neodymium, praseodymium, dysprosium and terbium. The project already benefits from a mining agreement, a completed environmental and social impact assessment, and designation as a strategic project under the EU Critical Raw Materials Act.
According to the updated studies, initial capital expenditure for Songwe Hill is estimated at around US$325.5 million, while the Puławy processing plant would require approximately US$212 million. The projects show strong financial potential, with post-tax net present values of about US$339 million for Songwe and US$779 million for the Polish facility. Both projects also demonstrate solid internal rates of return, which could improve further if rare earth prices strengthen.
Mkango’s development strategy links upstream mining in Malawi with downstream separation capacity in Europe, creating an integrated supply pathway for critical rare earth elements used in electric vehicles, wind turbines and advanced electronics. The company also emphasises adherence to international environmental, social and governance standards, including modern tailings management practices, as it advances the projects. If successfully developed, the combined operations could generate long-term economic benefits for both investors and host communities while helping diversify global rare earth supply.
More about Mkango Resources
Mkango Resources is a developer focused on rare earth elements, with flagship projects in Malawi and Poland designed to support both mined and recycled rare earth supply. Its primary objective is to produce mixed rare earth carbonate from the Songwe Hill deposit and process it into high-value magnet metals through the planned separation plant in Puławy.
Through this integrated approach, Mkango aims to supply critical materials required for clean energy technologies and other high-growth industries, positioning itself within the expanding global market for rare earth-based components.
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