HyProMag USA Expands Detailed Engineering Phase To Include Three HPMS Vessels And Initiates Concept Studies For Further Expansion And Complementary “Long Loop” Recycling
HyProMag USA has announced an expansion of its U.S. permanent magnet recycling project to include three HPMS vessels, up from the previously planned two vessels. The project's November 2024 Feasibility Study showed that adding a third HPMS vessel, at an incremental cost of $7 million, would increase NPV7% from $262 million to $279 million at current market prices, and from $503 million to $593 million based on forecast prices.
The company is also initiating conceptual studies to potentially triple the project's capacity across facilities in Fort Worth, Texas, South Carolina, and Nevada. The expansion includes evaluating integrated long-loop chemical processing development. HyProMag USA aims to supply 10% of U.S. domestic NdFeB magnet demand within five years of commissioning.
With the third HPMS vessel, the Texas Hub will produce 750 metric tons annually of recycled sintered NdFeB magnets and 807 metric tons of associated NdFeB co-products over a 40-year operating life.
HyProMag USA ha annunciato un'espansione del suo progetto di riciclaggio di magneti permanenti negli Stati Uniti, includendo tre impianti HPMS, rispetto ai due precedentemente pianificati. Lo Studio di Fattibilità di Novembre 2024 del progetto ha dimostrato che l'aggiunta di un terzo impianto HPMS, con un costo incrementale di 7 milioni di dollari, aumenterebbe il NPV7% da 262 milioni a 279 milioni di dollari ai prezzi di mercato attuali, e da 503 milioni a 593 milioni in base ai prezzi previsti.
L'azienda sta anche avviando studi concettuali per potenzialmente triplicare la capacità del progetto nelle strutture a Fort Worth, Texas, Carolina del Sud e Nevada. L'espansione comprende la valutazione dello sviluppo di un processo chimico integrato a lungo termine. HyProMag USA mira a fornire il 10% della domanda nazionale di magneti NdFeB negli Stati Uniti entro cinque anni dall'avvio.
Con il terzo impianto HPMS, il Polo del Texas produrrà 750 tonnellate metriche all'anno di magneti NdFeB sinterizzati riciclati e 807 tonnellate metriche di co-prodotti NdFeB associati durante una vita operativa di 40 anni.
HyProMag USA ha anunciado una expansión de su proyecto de reciclaje de imanes permanentes en EE. UU. para incluir tres recipientes HPMS, en lugar de los dos planificados anteriormente. El Estudio de Viabilidad de Noviembre de 2024 del proyecto mostró que agregar un tercer recipiente HPMS, con un costo incremental de 7 millones de dólares, aumentaría el NPV7% de 262 millones a 279 millones de dólares a los precios de mercado actuales, y de 503 millones a 593 millones en base a los precios pronosticados.
La empresa también está iniciando estudios conceptuales para potencialmente triplicar la capacidad del proyecto en las instalaciones de Fort Worth, Texas, Carolina del Sur y Nevada. La expansión incluye la evaluación del desarrollo de un proceso químico integrado de bucle largo. HyProMag USA tiene como objetivo proporcionar el 10% de la demanda nacional de imanes NdFeB en EE. UU. dentro de cinco años después de la puesta en marcha.
Con el tercer recipiente HPMS, el Hub de Texas producirá 750 toneladas métricas anuales de imanes NdFeB sinterizados reciclados y 807 toneladas métricas de co-productos NdFeB asociados durante una vida operativa de 40 años.
HyProMag USA는 미국의 영구 자석 재활용 프로젝트를 세 개의 HPMS 용기로 확장한다고 발표했습니다. 이는 이전에 계획된 두 개에서 증가한 것입니다. 프로젝트의 2024년 11월 타당성 조사에 따르면, 700만 달러의 추가 비용으로 세 번째 HPMS 용기를 추가하면 현재 시장 가격에서 NPV7%가 2억 6200만 달러에서 2억 7900만 달러로, 예상 가격에 따라 5억 300만 달러에서 5억 9300만 달러로 증가할 것이라고 합니다.
회사는 또한 텍사스주 포트 워스, 사우스 캐롤라이나, 네바다의 시설에서 프로젝트 용량을 잠재적으로 세 배로 늘리기 위한 개념 연구를 시작하고 있습니다. 이 확장은 통합 장기 화학 처리 개발을 평가하는 것을 포함합니다. HyProMag USA는 가동 시작 후 5년 이내에 미국 내 NdFeB 자석 수요의 10%를 공급하는 것을 목표로 하고 있습니다.
세 번째 HPMS 용기로 텍사스 허브는 연간 750미터 톤의 재활용된 소결 NdFeB 자석과 807미터 톤의 관련 NdFeB 공동 제품을 40년의 운영 수명 동안 생산할 것입니다.
HyProMag USA a annoncé une expansion de son projet de recyclage de magnets permanents aux États-Unis pour inclure trois unités HPMS, au lieu des deux initialement prévues. L'étude de faisabilité de novembre 2024 a montré qu'ajouter une troisième unité HPMS, à un coût supplémentaire de 7 millions de dollars, augmenterait la VAN7% de 262 millions à 279 millions de dollars aux prix du marché actuels, et de 503 millions à 593 millions en fonction des prix prévus.
L'entreprise lance également des études conceptuelles pour potentiellement tripler la capacité du projet dans les installations de Fort Worth, Texas, Caroline du Sud et Nevada. L'expansion comprend l'évaluation du développement d'un traitement chimique intégré à long terme. HyProMag USA vise à fournir 10% de la demande nationale de magnets NdFeB aux États-Unis dans les cinq ans suivant la mise en service.
Avec la troisième unité HPMS, le pôle du Texas produira 750 tonnes métriques par an de magnets NdFeB frittés recyclés et 807 tonnes métriques de co-produits NdFeB associés sur une durée de vie opérationnelle de 40 ans.
HyProMag USA hat eine Erweiterung seines US-Projekts zur Recycling von Permanentmagneten angekündigt, um drei HPMS-Anlagen einzubeziehen, anstelle der zuvor geplanten zwei Anlagen. Die Machbarkeitsstudie vom November 2024 hat gezeigt, dass die Hinzufügung einer dritten HPMS-Anlage, zu einem zusätzlichen Kostenaufwand von 7 Millionen Dollar, den NPV7% von 262 Millionen auf 279 Millionen Dollar zu aktuellen Marktpreisen erhöhen würde, und von 503 Millionen auf 593 Millionen Dollar basierend auf prognostizierten Preisen.
Das Unternehmen beginnt auch mit konzeptionellen Studien, um die Kapazität des Projekts in den Einrichtungen in Fort Worth, Texas, South Carolina und Nevada potenziell zu verdreifachen. Die Erweiterung umfasst die Bewertung der integrierten chemischen Langzeitverarbeitung. HyProMag USA hat sich zum Ziel gesetzt, innerhalb von fünf Jahren nach der Inbetriebnahme 10% der inländischen NdFeB-Magnetnachfrage in den USA zu decken.
Mit der dritten HPMS-Anlage wird das Texas-Hub jährlich 750 metrische Tonnen recycelte gesinterte NdFeB-Magnete und 807 metrische Tonnen zugehörige NdFeB-Nebenprodukte über eine Betriebsdauer von 40 Jahren produzieren.
- NPV7% increase to $279M (current prices) and $593M (forecast prices) with third HPMS vessel
- Low incremental capital cost of $7M for significant capacity expansion
- Targeting 10% of US domestic NdFeB magnet demand within 5 years
- 40-year operating life for Texas Hub facility
- Low CO2 footprint of 2.35 kg CO2 eq. per kg of product
- Significant capital investment required for expansion
- Project success dependent on future market prices and demand forecasts
LONDON, UNITED KINGDOM AND VANCOUVER, BC / ACCESS Newswire / March 11, 2025 / CoTec Holdings Corp. (TSXV:CTH)(OTCQB:CTHCF) ("CoTec") and Mkango Resources Ltd. (AIM:MKA)(TSX-V:MKA) ("Mkango") are pleased to announce that HyProMag USA LLC ("HyProMag USA") will expand the upcoming detailed design phase of its U.S. permanent magnet recycling and manufacturing project (the "Project") to include three HPMSi vessels.
In addition, and concurrently, HyProMag USA will begin conceptual studies to evaluate further expansion to triple the capacity of the Project, versus that envisaged in the Feasibility Study, across the Project footprint of Fort Worth, Texas ("Texas Hub"), South Carolina and Nevada as well as integrated USA development of long loop chemical processing, which is complementary to the HPMS short-loop process. Long-loop chemical processing is used to process any material not suitable for short-loop recycling as well as swarf generated from magnet finishing. HyProMag USA is targeting to supply
The November 2024 base case Feasibility Study (the "Feasibility Study")iii, which was based on two HPMS vessels, indicated a NPV
Julian Treger, CoTec CEO commented: "The potential expansion of HyProMag USA is compelling from a value perspective as the modular design of the production hubs is expected to allow for significant upfront cost savings and optimization opportunities could result in even higher returns than the strong economics shown by the Feasibility Study. Additionally, it will also play a key role in supporting the US strategy of reshoring manufacturing capability, reducing dependance on foreign magnets and rare earths.
The increased production capacity could also allow the flexibility to produce a wider range of products and specialist magnets, further improving both financial returns and the company's ability to become a supplier of choice."
Will Dawes, Mkango CEO commented:"The HyProMag USA Feasibility Study highlighted the strong economics of the Project, with significant opportunities for further expansions, coupled with ancillary developments to add value, broaden the product suite and strengthen the competitive positioning."
The Feasibility Study included the Texas Hub, and two pre-processing facilities located in South Carolina and Nevada respectively. It is envisaged that additional expansion capacity and downstream development could be added at either the Texas Hub and / or the two pre-processing facilities, which will be evaluated during the concept studies, as well as the potential to process additional primary feed if required to initially support the expansion. The modular nature of the production design should allow duplication with limited design adjustments and should benefit from the construction and ramp-up learnings of the Texas Hub, and commissioning of the UK and Germany operations. With the increased production capacity, the Project will generate additional NdFeB co-products suitable for long loop chemical processing. The opportunity to develop an integrated long loop chemical processing plant will also be evaluated during the concept studies.
Both long-loop and short-loop recycling technologies are underpinned by the HPMS technology, which liberates magnets from end-of-life scrap streams in a cost effective and energy efficient way to produce a recycled NdFeB alloy powder, which is manufactured into a magnet (via the short loop process) or into a rare earth carbonate or oxide (via the long loop chemical process). In March 2025, HyProMag USA announced the results of an independent ISO-Compliant product carbon footprint study which confirmed an exceptionally low CO2 footprint of 2.35 kg CO2 eq. per kg of NdFeB cut sintered block product.viii
The Texas Hub's annual production with a third HPMS vessel will be 750 metric tons per annum of recycled sintered NdFeB magnets and 807 metric tons per annum of associated NdFeB co-products (total payable capacity - 1,557 metric tons NdFeB within five years of commissioning) over a 40 year operating life. It is expected that the third reactor will provide the Texas Hub with significant optionality to supply the U.S. market with additional NdFeB alloy powder. The detailed design will further incorporate debottlenecking and optimization of the three existing magnet lines at the proposed Texas Plant.
Ownership
HyProMag USA is owned 50:50 by CoTec and HyProMag Limited. HyProMag Limited is 100 per cent owned by Maginito Limited ("Maginito"), which is owned on a 79.4/20.6 per cent basis by Mkango and CoTec.
About HyProMag
HyProMag is commercializing HPMS recycling technology in the UK, Germany and United States. HyProMag is also evaluating other jurisdictions, and in mid-2024 launched a collaboration with Envipro on rare earth magnet recycling in Japan. HPMS technology was developed at the Magnetic Materials Group (MMG) at University of Birmingham, underpinned by approximately US
About CoTec Holdings Corp.
CoTec is a publicly traded investment issuer listed on the Toronto Venture Stock Exchange ("TSX- V") and the OTCQB and trades under the symbol CTH and CTHCF respectively. CoTec Holdings Corp. is a forward-thinking resource extraction company committed to revolutionizing the global metals and minerals industry through innovative, environmentally sustainable technologies and strategic asset acquisitions. With a mission to drive the sector toward a low-carbon future, CoTec employs a dual approach: investing in disruptive mineral extraction technologies that enhance efficiency and sustainability while applying these technologies to undervalued mining assets to unlock their full potential. By focusing on recycling, waste mining, and scalable solutions, the Company accelerates the production of critical minerals, shortens development timelines, and reduces environmental impact. CoTec's strategic model delivers low capital requirements, rapid revenue generation, and high barriers to entry, positioning it as a leading mid-tier disruptor in the commodities sector.
For more information, please visit www.cotec.ca.
About Mkango Resources Ltd.
Mkango is listed on the AIM and the TSX-V. Mkango's corporate strategy is to become a market leader in the production of recycled rare earth magnets, alloys and oxides, through its interest in Maginito Limited ("Maginito"), which is owned 79.4 per cent by Mkango and 20.6 per cent by CoTec, and to develop new sustainable sources of neodymium, praseodymium, dysprosium and terbium to supply accelerating demand from electric vehicles, wind turbines and other clean energy technologies.
Maginito holds a 100 per cent interest in HyProMag and a 90 per cent direct and indirect interest (assuming conversion of Maginito's convertible loan) in HyProMag GmbH, focused on short loop rare earth magnet recycling in the UK and Germany, respectively, and a 100 per cent interest in Mkango Rare Earths UK Ltd ("Mkango UK"), focused on long loop rare earth magnet recycling in the UK via a chemical route.
Maginito and CoTec are also rolling out HPMS recycling technology into the United States via the 50/50 owned HyProMag USA LLC joint venture company.
Mkango also owns the advanced stage Songwe Hill rare earths project and an extensive rare earths, uranium, tantalum, niobium, rutile, nickel and cobalt exploration portfolio in Malawi, and the Pulawy rare earths separation project in Poland. Mkango has signed a letter of Intent with Crown PropTech Acquisitions to list the Songwe Hill and Pulawy rare earths projects on NASDAQ via a SPAC Merger.
For more information, please visit www.mkango.ca
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements (within the meaning of that term under applicable securities laws) with respect to Mkango and CoTec. Generally, forward looking statements can be identified by the use of words such as "plans", "expects" or "is expected to", "scheduled", "estimates" "intends", "anticipates", "believes", or variations of such words and phrases, or statements that certain actions, events or results "can", "may", "could", "would", "should", "might" or "will", occur or be achieved, or the negative connotations thereof. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. Such factors and risks include, without limiting the foregoing, the successful conclusion of the MDA, the availability of (or delays in obtaining) financing to develop Songwe Hill, the Recycling Plants being developed by Maginito in the UK, Germany and the US (the "Maginito Recycling Plants"), the results of the Feasibility Study and the Pulawy Separation Plant, governmental action and other market effects on global demand and pricing for the metals and associated downstream products for which Mkango is exploring, researching and developing, geological, technical and regulatory matters relating to the development of Songwe Hill, the ability to scale the HPMS and chemical recycling technologies to commercial scale, competitors having greater financial capability and effective competing technologies in the recycling and separation business of Maginito and Mkango, availability of scrap supplies for Maginito's recycling activities, government regulation (including the impact of environmental and other regulations) on and the economics in relation to recycling and the development of the Maginito Recycling Plants, and the Pulawy Separation Plant and future investments in the United States pursuant to the proposed cooperation agreement between Maginito and CoTec, the outcome and timing of the completion of the feasibility studies, cost overruns, complexities in building and operating the plants, and the positive results of feasibility studies on the various proposed aspects of Mkango's, Maginito's and CoTec's activities. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company and CoTec disclaim any intention and assume no obligation to update or revise any forward-looking statements, whether because of new information, future events or otherwise, except as required by applicable law. Additionally, the Company and CoTec undertake no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.
For further information on CoTec, please contract:
CoTec Holdings Corp.
Braam Jonker
Chief Financial Officer
braam.jonker@cotec.ca
Canada: +1 604 992-5600
For further information on Mkango, please contact:
Mkango Resources Limited
William Dawes
Chief Executive Officer
will@mkango.ca
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
Alexander Lemon
President
alex@mkango.ca
SP Angel Corporate Finance LLP
Nominated Adviser and Joint Broker
Jeff Keating, Jen Clarke, Devik Mehta
UK: +44 20 3470 0470
Alternative Resource Capital
Joint Broker
Alex Wood, Keith Dowsing
UK: +44 20 7186 9004/5
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This press release does not constitute an offer to sell or a solicitation of an offer to buy any equity or other securities of the Company in the United States. The securities of the Company will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold within the United States to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.
SOURCE: CoTec Holdings Corp.
View the original press release on ACCESS Newswire
FAQ
What is the expected production capacity of HyProMag USA's Texas Hub with three HPMS vessels?
How much will CTHCF's HyProMag USA project NPV increase with the third HPMS vessel?
What percentage of US domestic NdFeB magnet demand does HyProMag USA aim to supply?
What is the CO2 footprint of HyProMag USA's NdFeB magnet production?
