Mkango Resources Ltd (AIM/TSX-V: MKA) has completed the acquisition of German rare earth magnet recycling business Remloy from Heraeus Amloy Technologies GmbH for €8 million (US$9.3 million), expanding its position across the European rare earth recycling and magnet supply chain.
Mkango paid €5 million (US$5.8 million) in cash on completion, with the remaining €3 million due on 28 August 2028, two years after completion.
Remloy operates a fully commissioned recycling facility in Bitterfeld, Germany, which processes end-of-life rare earth magnets through a melting process to produce neodymium-iron-boron (NdFeB) alloy powders for bonded and hot-deformed magnet markets. The operation is targeting capacity of at least 500 tonnes of NdFeB alloy powder per year.
A significant component of the acquisition is Remloy’s existing inventory. At completion, the business held approximately 345 tonnes of end-of-life rare earth magnets, rare earth alloys and other raw materials, providing potential feedstock for both Remloy and Mkango’s HyProMag operations as they scale production.
Mkango said the immediate focus will be on small-scale production for product optimisation, initial sales and customer samples while progressing offtake discussions. The company plans to scale Remloy towards full capacity over the next few years.
The acquisition also adds another recycling route to Mkango’s existing technologies. Remloy’s medium-loop recycling process complements HyProMag’s short-loop process for producing sintered magnets and Mkango Rare Earths UK’s long-loop technology for recovering mixed rare earth carbonates and oxides.
Mkango sees additional opportunities to move material between the businesses, including supplying end-of-life magnets from Remloy’s stockpile to HyProMag and providing material produced using HyProMag’s Hydrogen Processing of Magnet Scrap technology as feedstock for Remloy.
Longer term, the group is evaluating the potential to supply primary rare earth material from its Songwe Hill project in Malawi for blending with recycled feedstock at Remloy. Mkango also sees opportunities for joint marketing, technical collaboration and the addition of further rare earth metal and alloy technologies.
Former Heraeus Remloy co-head David Bender has been appointed managing director of Remloy following completion and will lead the business alongside its existing technical and operational management team.
Chief executive William Dawes said the acquisition further strengthens Mkango’s position across the rare earth supply chain, spanning recycling and magnet and alloy manufacturing in the UK, Germany and US, alongside planned rare earth separation in Poland and mining development in Malawi.
