Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF) has welcomed the European Raw Materials Alliance's (ERMA) commitment to support the development of a rare earth separation plant in Pulawy, Poland.
ERMA will support Mkango Resources with securing financing for the plant. The plant will be supplied with rare earth carbonate originating from Mkango's Songwe Hill primary deposit of rare earth elements in Malawi, Africa. The plant will also be able to process other materials supplied by third-party providers thus acting as a future European Hub for rare earth elements separation.
The Puławy project will aid the creation of a secure supply chain option for neodymium, praseodymium, dysprosium, and terbium for the European Union. All these rare earth elements are critical in the production of electric vehicles, wind turbines and other clean energy applications that are key to Europe's Green Agenda.
"It is the primary role of ERMA to secure raw materials and raw material supply chains for Europe to support industrial ecosystems and create jobs within the European Union. We cannot do this alone which is why diversifying is so key - this is a multi-national project where we have a Canadian partner, Mkango Resources, accessing critical raw materials in Malawi, Africa, processing them in a plant in Poland, all for the benefit of the European economy. The Puławy project is one of the first ERMA projects to get the green light to provide critical raw materials needed to fulfil European goals in the green transition while diversifying the supply chain in the long term,” said Dr Massimo Gasparon, ERMA’s director.
William Dawes, the chief executive officer of Mkango Resources, said the company looked forward to supporting its partners in Europe in creating a more diverse raw materials chain.
“ERMA's support has been and continues to be important for us, and we are happy to be part of its vast network of leading companies in the raw materials sector. ERMA's underlying principles are a great fit with the Mkango's vision and philosophy for the Puławy separation plant and Songwe Hill deposit in Malawi," Dawes said.
Shares in Mkrango were up 8.4% at 25.75p in the first hour of trading.