Mkango Resources Limited which owns the advanced stage of Songwe Hill Rare Earth Project in Phalombe District, has lauded the launch of the rare earth magnet facility in the UK as a landmark achievement and transformational for rare earth supply chains. Mkango Resources Limited chief executive officer William Dawes is quoted in the statement as having said: “This development provides a strong platform for further scale-up in the UK and international roll-out, with other countries being assessed for further expansion.” The firm said the facility can recover over 400 kilogrammes (kg) of rare earth alloy per batch utilising the hydrogen processing of magnet scrap reactor and can produce new magnets from the recycled rare earth alloy at a capacity of 100 metric tonnes per annum. In an earlier interview, geologist Ignatius Kamwanje said the developments will boost investor confidence in the mining project, which already signed a mining development agreement (MDA) with the Malawi Government in July 2025.
Last year, Mkango Resources Limited announced that it was close to securing a $100 million (about K175 billion) direct loan for mine development from the US Government-owned International Development Finance Corporation (DFC). Songwe Hill is one of the few rare earths projects to have progressed to the definitive feasibility stage, with an expected mine life of 18 years. In the MDA the Malawi Government signed with Mkango Resources, the former holds a 10 percent stake in the firm. Other key components include five percent royalty of gross revenue and 10 years tax loss carry forward.
