The AIM and TSX-V listed rare earths group has bought Germany's Remloy for €8 million, adding a second European magnet recycling route alongside its UK and Poland operations.
Mkango Resources (AIM: MKA) has completed the €8 million (US$9.3 million) acquisition of German rare earth magnet recycling business Remloy from Heraeus Amloy Technologies, broadening its footprint across the European recycling and magnet supply chain.
The deal was structured with €5 million (US$5.8 million) paid in cash on completion and the remaining €3 million deferred until 28 August 2028, giving Mkango immediate control of a fully commissioned recycling plant in Bitterfeld while spreading the cash outlay over two years.
Remloy's Bitterfeld facility melts end-of-life NdFeB magnets into alloy powders for bonded and hot-deformed magnet markets, and is targeting output of at least 500 tonnes a year. Crucially, the business came with around 345 tonnes of existing feedstock, including end-of-life magnets and rare earth alloys, which Mkango can draw on for both Remloy and its HyProMag recycling operation as production scales.
The acquisition slots Remloy's 'medium-loop' process alongside HyProMag's short-loop sintered magnet recycling and Mkango Rare Earths UK's long-loop technology for recovering rare earth carbonates and oxides, with management pointing to scope for shifting material between the three businesses and, longer term, blending recycled feedstock with primary material from its Songwe Hill project in Malawi.
Former Heraeus Remloy co-head David Bender takes over as managing director, and Mkango says the near-term priority is small-scale production, customer samples and offtake talks before ramping Remloy towards full capacity over the coming years. Chief executive William Dawes framed the purchase as reinforcing the group's reach across recycling, magnet and alloy manufacturing in the UK, Germany and US, alongside planned separation capacity in Poland and mining development in Malawi.
This report is based on Mkango Resources Ltd’s announcement and coverage by Share Talk. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Sticker it on Unsplash.
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