Name of the Project
Songwe Hill rare earths project.

Location
Malawi, near Migowi.

Project Owner/s
Mkango Resources.

Project Description
Songwe is among the few rare earths projects globally to have reached definitive feasibility study (DFS) stage.

The project has a proven and probable mineral reserve estimate of 18.1-million tonnes grading 1.16% total rare-earth oxide (TREO).

The DFS envisages a conventional openpit contract mining operation feeding on-site milling, flotation and hydrometallurgical plants to produce a value-add purified mixed rare-earth carbonate (MREC) product. The project is expected to process about one-million tonnes of ore a year.

Average production over the first five full years is projected at 5 954 t/y of TREOs in MREC, including about 1 953 t/y of neodymium and praseodymium oxides, and 56 t/y of dysprosium and terbium oxides, with the carbonate grading 55% TREOs on a dry basis.

The product will be cerium depleted, as it is currently considered to have challenging market fundamentals, reflecting the process route selected in the DFS.

The project includes an integrated processing plant comprising a mill, flotation plant, hydrometallurgical plant and sulphuric acid plant with cogenerated power capacity, as well as a lined tailings storage facility (TSF) and associated infrastructure.

The project will draw 25 MW from Malawi’s grid, with a 25 MW backup solar farm, battery storage and diesel generators also planned.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The updated DFS gives Songwe Hill an after-tax net present value of about $339-million using a 10% nominal discount rate, and an internal rate of return of 24%, with a payback period of 3.4 years from the start of full production.

Capital Expenditure
Initial capital expenditure is estimated at about $325.5-million, including a $27.8-million contingency, for the mine, mill, flotation and hydrometallurgy plants, tailings storage facility (TSF) and related infrastructure.

Planned Start/End Date
The DFS assumes that engineering will start in April 2026, procurement in September 2026, construction in April 2027, commissioning in October 2028 and production ramp-up in the second quarter of 2029, ending in the first quarter of 2030.

Latest Developments
Mkango has reported that the project has a Mining Development Agreement in place, with a complete environmental-, social-, health-impact assessment (ESHIA) completed in compliance with International Finance Corporation Performance Standards. The Global Industry Standard on Tailings Management has also been adopted for the TSF design and management.

Key Contracts, Suppliers and Consultants
SENET, a DRA Global company (principal consultant for the original and updated DFS);MSA Group (geology, mineral resource and geotechnical investigation); Bara Consulting (mining studies); Grinding Solutions and Keramos (comminution); ANSTO (hydrometallurgy); KYSPYmet and ALS Metallurgy (flotation); Epoch Resources (TSF); Digby Wells Environmental and Kongiwe Environmental (ESHIA); SGS Australia (geochemistry); Western Geotechnical and Laboratory Services (geotechnical testwork); C. Steinweg Bridge (logistics); and Adamas Intelligence (market intelligence).

Contact Details for Project Information
Mkango Resources CEO William Dawes, tel +1 403 444 5979 or email will@mkango.ca.