Welcome to Maginito Limited.
Maginito Limited was established by Mkango Resources Ltd (TSXV/AIM:MKA) (www.mkango.ca), which holds a 90% interest in Maginito, to pursue downstream green technology opportunities in the rare earths supply chain, encompassing NdFeB magnet recycling and innovative rare earth alloy, magnet and separation technologies, underpinned by access to sustainably sourced primary and secondary rare earth raw materials. The company’s strategy for value creation is geared to accelerating growth in the electric vehicle market, wind power generation and other industries driven by decarbonisation of the economy.
In March 2023, Mkango and CoTec announced that they had closed a £1.5 million investment by CoTec into Maginito for a 10% interest, with an option to increase to 20.6%. In connection with the investment, Maginito and CoTec agreed to collaborate on the commercialisation of downstream rare earth technologies in the United States and Mkango Rare Earths UK Ltd was transferred to become a subsidiary of Maginito. Maginito and CoTec are evaluating development of recycling, chemical processing, alloy and magnet manufacturing in the United States, with scoping studies and site selection underway in advance of detailed feasibility studies, and ongoing discussions with potential customers and recycling partners
Maginito holds a 42% interest in UK rare earth (NdFeB) magnet recycler, HyProMag (www.hypromag.com) with an option to increase its interest to 49%. Hypromag has licensed the patented technology called HPMS (Hydrogen Processing of Magnet Scrap) developed in the Magnetic Materials Group (MMG) at the University of Birmingham.
HyProMag’s strategy is to establish short loop recycling facilities for NdFeB magnets at Tyseley Energy Park in Birmingham, U.K. and other locations to provide a sustainable solution for the supply of NdFeB magnets and alloys for a wide range of markets including, for example, automotive and electronics. The plant at Tyseley Energy Park is being developed together with the University of Birmingham, with a minimum capacity of 100tpa NdFeB (neodymium, iron, boron) and first production is targeted for 2023, which follows successful piloting at the University of Birmingham in 2022 as featured on BBC Midlands News: https://youtu.be/9P-dsNCffWw. This £4.3 million project is being funded by Driving the Electric Revolution, an Industrial Strategy Challenge Fund challenge delivered by UK Research and Innovation (“UKRI”). HyProMag will the primary industrial user and operator of the plant. This development builds on the pilot plant commissioned this year at the University of Birmingham.
Near term production pipeline
In November 2021, HyProMag established an 80%-owned subsidiary in Germany, HyProMag GmbH (www.hypromag.de), to rollout commercialisation of HPMS technology into Germany and Europe. HyProMag GmbH is 20% owned by Professor Carlo Burkhardt of Pforzheim University, co-ordinator of the €14m SusMagPro (www.susmagpro.eu) and €13m REEsilience (www.reesilience.eu) EU funded recycling projects, with approximately 40 partners across the European supply chain.
HyProMag GmbH is developing a similar sized plant to that at Tyseley Energy Park. Initial capacity is expected to be a minimum of 100tpa NdFeB, comprising recycled rare earth sintered magnets and alloys and will be the first in Germany using the patented HPMS process, with first production targeted for 2024. Maginito has entered into a convertible loan agreement (the “HyProMag GmbH Convertible Loan”) with HyProMag GmbH, to acquire up to a 50% interest. Under the terms of the HyProMag GmbH Convertible Loan, Maginito has granted HyProMag GmbH a loan facility for €2.5 million (approximately C$3.6 million) available to be drawn down in accordance with an agreed investment plan and convertible into a 50% interest in HyProMag GmbH.
This investment by Maginito (which will be funded in part by proceeds from Mkango’s recently completed £3.5 million placing) will contribute to the matched funding requirements to unlock the €3.7 million (approximately C$5.3 million) grants announced by Mkango on November 23, 2022, for development of the production facility in Baden-Württemberg State.
Mkango UK is establishing a pilot plant at Tyseley Energy Park (the “Mkango UK Pilot Plant”) to chemically process recycled HPMS NdFeB powder and magnet swarf (i.e. the powder produced from grinding and finishing magnets) from a range of scrap sources including electronic waste, electric motors and wind turbines, complementing the short loop magnet recycling routes being developed in parallel by HyProMag. The £1.1 million pilot plant programme is being developed as part of the SCREAM Project (https://scream-uk.com/). 70% of the costs are being funded by UK Research and Innovation (UKRI) as part of the Driving the Electric Revolution challenge.
Technology development is supported by a number of Government grant funded projects in which Mkango Rare Earths UK, HyProMag Limited, HyProMag GmbH and University of Birmingham are participants:
May 16, 2023Maginito To Acquire Pioneering Rare Earth Magnet Recycler HyProMag
March 16, 2023Completion of £1.5 Million Investment by CoTec Into Maginito Limited and Co-operation Agreement Signed for Development of Rare Earth Technologies in the United States
February 13, 2023Mkango Raises £3.5M (C$5.7M) To Catalyse Near Term Mining And Recycling Milestones