Mkango Resources Limited has reported positive outcomes from an updated definitive feasibility study for its Songwe Hill Rare Earths Project in Malawi, alongside a pre-feasibility study for the Puławy Rare Earth Separation Plant in Poland.
The Songwe Hill project is designed as an 18-year operation, with expected average production of 5,954 tonnes per year of rare earth oxides in a mixed rare earth carbonate product. The project carries an estimated initial capital cost of $325.5 million and delivers a post-tax net present value (NPV) of $339 million, with an internal rate of return (IRR) of 24%.
Meanwhile, the Puławy separation plant is expected to require $212 million in initial capital expenditure and shows a significantly higher post-tax NPV of $779 million with an IRR of 40%.
Together, the studies highlight the potential for substantial value creation across Mkango’s integrated rare earths strategy, spanning both upstream mining and downstream processing of critical materials.
Alexander Lemon, President of Mkango commented: “We are delighted to announce the results of our updated NI 43-101 DFS for the Songwe Hill Rare Earths project and the PFS results for the Puławy Rare Earth Separation Plant. Incorporating revised rare earth pricing, capital and operating cost assumptions, these studies reflect our commitment to moving these high-quality projects forward. As one of the few companies in the sector to update feasibility studies with current market pricing, Mkango is uniquely positioned as a future supplier of both mined and recycled rare earths – a critical differentiator as global demand for green transition materials accelerates. Songwe in Malawi and Puławy in Poland are landmark projects for the communities and economies they are expected to transform and our mission to deliver sustainable, long-term value for our shareholders.”
Based on updated feasibility‑study inputs and assumptions regarding rare earth pricing, production volumes, recoveries, capital and operating costs, discount rates, tax regimes, project schedules, and market demand forecasts, as well as the technical, environmental and regulatory parameters set out in the DFS and PFS and as summarised in this release (the “Study-level Assumptions”), selected study-level outputs from the DFS and PFS include:
