Mkango Resources Ltd. announced that pursuant to a non-binding Memorandum of Understanding (MoU), HyProMag Limited has launched a collaboration with Envipro Holdings Inc. on rare earth magnet recycling in Japan and the United Kingdom. HyProMag is commercialising Hydrogen Processing of Magnet Scrap ("HPMS") recycling technology in the UK, Germany and United States. HPMS technology was developed at the University of Birmingham, underpinned by approximately USD 100 million of research and development funding, and has major competitive advantages versus other rare earth magnet recycling technologies, which are largely focused on chemical processes but do not solve the challenges of liberating magnets from end-of-life scrap streams - HPMS provides the solution.

Near term milestones for the recycling business include full commissioning of the short-loop HPMS recycling plant in the UK with initial commercial sales of NdFeB by HyProMag targeted for H2 2024, commissioning of the pilot scale (long-loop, chemical route) recycling plant in UK to produce rare earth oxides and carbonates in H1 2024 and completion of the USA Feasibility Study in second half of 2024. Initial production in the UK is targeted at 25-30tpa NdFeB with significant expansion potential. HyProMag's HPMS recycling technology was selected by the Minerals Security Partnership for support as one of its key projects.

The technology was selected because the MSP determined its strong potential to contribute towards the development of responsible critical mineral supply chains.