Securing critical raw materials for the European market is ERMA’s main objective.
Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF) has welcomed the commitment of the European Commodities Alliance (ERMA) to support the development of a rare earths separation plant in Pulawy, Poland.
ERMA will support Mkango Resources in obtaining financing for the plant. The plant will be supplied with rare earth carbonate from Mkango’s main Songwe Hill rare earth element deposit in Malawi, Africa. The plant will also be able to process other materials supplied by third-party suppliers, thus acting as a future European hub for the separation of rare earth elements.
The Puławy project will contribute to the creation of a secure supply chain option for neodymium, praseodymium, dysprosium and terbium for the European Union. All of these rare earth elements are essential for the production of electric vehicles, wind turbines and other clean energy applications essential to Europe’s green agenda.
“ERMA’s main role is to secure raw materials and raw material supply chains for Europe in order to support industrial ecosystems and create jobs within the European Union. We cannot doing it alone is why diversification is so essential – this is a multinational project where we have a Canadian partner, Mkango Resources, accessing critical raw materials in Malawi, Africa, processing them in a factory in Poland, all for the benefit of the European economy The Puławy project is one of the first ERMA projects to be given the green light to supply the essential raw materials needed to achieve the European green transition objectives while diversifying the supply chain long-term supply,” said Dr. Massimo Gasparon, Director of ERMA.
William Dawes, CEO of Mkango Resources, said the company looked forward to supporting its partners in Europe in creating a more diverse commodity chain.
“ERMA’s support has been, and continues to be, important to us, and we are pleased to be part of their extensive network of leading commodity companies. The underlying principles of ERMA perfectly match Mkango’s vision and philosophy for the Puławy separation plant and Songwe Hill deposit in Malawi,” said Dawes.
Shares of Mkrango rose 8.4% to 25.75 pence in the first hour of trading.