Mkango Advances Strategic Rare Earth Separation Hub in Poland

Highlights

• Mkango's Puławy plant PFS targets 30,000 tonnes per year of mixed rare earth carbonate feed with full Nd and Pr separation.
• Project economics show an after-tax NPV of ~$779 million, 39.7% IRR, and a payback period of just over two years post-production.
• Initial capital costs estimated at ~$212 million, with engineering starting 2026 and commercial production expected in 2029.
• Facility planned adjacent to Grupa Azoty Puławy chemicals complex to leverage existing infrastructure and operational synergies.

Mkango Resources (OTCMKTS: MKNGF) has advanced plans for what could become one of Europe's most significant rare earth separation facilities, releasing a prefeasibility study (PFS) for its proposed Puławy rare earth separation plant in eastern Poland. The project would process mixed rare earth carbonate feed into separated rare earth products, including neodymium (Nd) and praseodymium (Pr), critical materials used in permanent magnets powering electric vehicles, wind turbines, robotics, and defense systems.

The PFS evaluated an expanded processing scenario based on 30,000 tonnes per year of mixed rare earth carbonate feed. Mkango's preferred development case assumes full separation of Nd and Pr into individual products, a configuration that significantly improves project economics.

According to the study, the project could generate an after-tax net present value of approximately $779 million with a 39.7% internal rate of return and a payback period of just over two years following full production. Initial capital costs are estimated at approximately $212 million.

Next-Door Neighbor: Grupa Azoty Puławy chemicals complex

The facility is planned adjacent to the Grupa Azoty Puławy chemicals complex, allowing access to existing infrastructure, utilities, reagents, logistics networks, and potential operational synergies. Engineering activities are expected to begin in 2026, with construction targeted for 2027, commissioning in late 2028, and commercial production ramping up during 2029.

Source: Engineering News & Mining Weekly Projects, "Puławy rare earth separation plant," May 29, 2026, by Sheila Barradas.