The Canadian miner is developing a rare earth project in the Southeast African country.
Canadian mineral exploration and development company Mkango Resources has signed a mining development agreement (MDA) with the Malawi Government for its Songwe Hill rare earth project. Under the MDA, the government will provide the necessary infrastructure to enable mining activities in the area and Malawi in general. Establishing the necessary infrastructure, such as roads or railways, to transport raw materials from often remote mines to harbors for shipping presents a major cost factor in developing new mining projects. In return, the government will receive a five percent royalty of gross revenues and ten percent interest in the project, while Mkango will pay just a 30 percent corporate tax rate.
According to Alexander Lemon, President of Mkango, the MDA is a “major milestone” for both the company and Malawi, adding that Songwe Hill would benefit the entire economy of the Southeast African country once operational. The company aims to mine neodymium, praseodymium, terbium, and dysprosium at Songwe Hill; all four rare earth elements are used to produce permanent magnets.
Besides Songwe Hill, Mkango also holds multiple other mineral exploration projects in Malawi and wholly owns the magnet recyclers Hypromag and Mkango Rare Earths UK. The latter recently commissioned a pilot plant at its site in Birmingham, United Kingdom (we reported).
Photo: iStock/jasonbennee