The company plans to mine neodymium, praseodymium, dysprosium, and terbium at the project.
Canadian mining company Mkango Resources has secured $4.6 million in funding from the U.S. International Development Finance Corporation (DFC) to advance its Songwe Hill rare earth project in Malawi. The funding for its subsidiary Lancaster Exploration Limited will be used to support front-end engineering design (FEED) and value engineering studies, key steps in preparing the project for construction and financing. Under the terms of the agreement, Mkango will match the DFC contribution with its own investment over the next 18 months.
The initiative is part of the DFC’s Project Development strategy under the U.S. BUILD Act, which aims to strengthen high-impact projects in other markets and enhance their readiness for future investment.
EU Also Voiced Interest for Songwe Hill
Besides the U.S., the European Union has also voiced its interest in the project. In June, the bloc added Songwe Hill to its list of strategic projects under the Critical Raw Materials Act. Selected projects can benefit from faster permitting and improved access to funding.
The announcement follows Mkango’s July mining agreement with the Government of Malawi for the Songwe Hill project, under which the company secured substantial support from the government to develop the project, including the provision of necessary infrastructure and reduced taxes.
In addition to Songwe Hill, Mkango is advancing multiple other exploration projects in Malawi and owns the Pulawy rare earth separation project in Poland, positioning the company across both upstream mining and downstream processing of rare earths. In addition, the company is also active in the recycling of rare earth magnets in projects across the UK.
Photo: iStock/shotbydave
