Mkango Resources, which focuses on the exploration and development of rare earth minerals in Africa, released the final feasibility study (DFS) report for the Songwe Hill rare earth mine project in Malawi, marking that the exploration and development of the project has reached an important milestone. milestone.
The Songwe Hill project, located 90 kilometers from the commercial center of Blantyre, is the cornerstone of Mukange's integrated strategy of mining, smelting and recycling, and will provide support for its proposed separation plant in Poland, as well as its operations in the United Kingdom and Germany. Supplement to rare earth permanent magnet recycling plant.
At the beginning of the year, Mukange announced that it has trial-produced praseodymium neodymium carbonate products using raw materials from the Songwe Mountain project.
DFS is based on conventional open-pit mining and adopts grinding-flotation-hydrometallurgy process to produce mixed rare earth carbonate products.
According to the DFS report, the Songwe Mountain Project has a Proven and Probable Ore Reserve of 18.1 million tonnes with a total rare earth oxide (TREO) grade of 1.16%.
As proposed by DFS, the construction investment of the Songwe Mountain project is US$277 million (excluding the emergency fund of US$34 million), including mine development, mineral processing facilities, tailings dams and related infrastructure. The project is expected to start mining in February 2025, with a mine life of 18 years. The dressing plant will be put into operation in July 2025 and will reach production in September of the same year.
Once full production is reached, the Songwe project can produce an average of 5,954 tons of rare earth oxides per year in the first five years. Including praseodymium neodymium oxide 1953 tons / year, dysprosium terbium oxide 56 tons / year, the total grade of rare earth carbonate 55%. The project's annual earnings before interest, tax, depreciation and amortization (EBITDA) can reach $215 million. From year 6 to year 18, the production of mixed rare earth carbonate is expected to be 4081 tons/year.
The results of the feasibility study show that according to the discount rate of 10%, the net present value of the project after tax is 559 million US dollars, the internal rate of return is 31.5%, and the payback period is two and a half years.
The reserves of this project have the possibility of further expansion. First, it is speculated that the amount of resources can be upgraded, and the second is that the nearby Nkalonje project has exploration potential.
Since 2010, Mukange has been carrying out exploration work at the Songwe Mountain Project.
This NPV does not include the project's contribution to the company's Pulawy Rare Earth Separation Plant in Poland, which will use misch carbonate from the Songwe Mountain project, allowing Mukang to pass an integrated Gain added value by transforming downstream businesses. The NPV also does not include the company's interest in the rare earth permanent magnet recycling business.
With the release of the feasibility study report, Songguishan Rare Earth Mine has been confirmed as one of the few rare earth projects that have reached the final feasibility study stage. In accordance with international standards, the project has fully completed environmental, social and health impact assessments.
William Dawes, CEO of the company, said: "The DFS is an important step forward for the company to become both a future mine and a supplier of recycled rare earths to meet the strong demand for rare earths in the green transition. ".
At present, the company is trying to reach a final agreement on mine development with the Malawi government. Upon completion of the Pravi feasibility study, the company will announce the final feasibility study results for the rare earth mining and separation plant integration project.
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