Dual listed mining firm, Mkango Resources Limited, is expecting to commence rare earths mining at its Songwe Hill Rare Earths mine in February 2025.
In a statement published on its website recently, the mining firm says production ramping up is expected from July 2025, averaging 5,954 tonnes per year, for total rare earth oxides with a long operating life of 18 years.
The project has an internal rate of return of 31.5 percent, payback period of 30 months from full production and a post-tax life-of-operations nominal cash flow of $2.1 billion.
“Songwe is now confirmed as one of the very few rare earths projects globally to have reached the DFS stage, with a full Environmental, Social, Health Impact Assessment completed in compliance with IFC Performance Standards and The Global Industry Standard for Tailings Management (2020) adopted for design and management of the tailings storage facility.
“For the first five years of full production (September 2025 – August 2030), including 1,953 tonnes per year of neodymium and praseodymium oxides, and 56 tonnes per year of dysprosium and terbium oxides, in a mixed rare earth carbonate grading 55 percent total rare earth oxides, generating nominal earnings before interest, taxes, depreciation of $215 million per year,” the statement reads.
It, however, indicates that the project is still waiting signing of a Mining Development Agreement (MDA) between the company and the government.
In a recent interview, Mkango Resources President Alex Lemon said the firm was working closely with the Ministry of Mining, Ministry of Finance and the Ministry of Justice so that they could complete the MDA and build a fantastic development project for Malawi.
During the week of June 27 2022, the company hosted site visits to Songwe for a number of major commercial and development banks.
The firm has been exploring rare earths at Songwe Hill Rare Earth Project in Phalombe since January 2010.