Mkango said flotation pilot plant processing by Australian company ALS Metallurgy has commenced that will produce rare earth mineral concentrate. This concentrate will then undergo hydrometallurgical pilot testing at ANSTO, also in Australia.

"The start of pilot plant processing is a major milestone for the company and Mkango joins the ranks of the very few rare earths projects that have been advanced to this stage of development," said William Dawes, chief executive of Mkango. We look forward to announcing results from the pilot plant when available."

Data from the flotation pilot plant will also be used by engineering company SENET in plans for a commercial scale operation.

The company noted that a majority of Songwe's rare earths are hosted within fluorocarbonate minerals, which means that high capital and energy intensive kilns will not be required during hydrometallurgical processing.

"Mkango is uniquely positioned in the rare earths sector with an integrated 'mine, refine, recycle' strategy encompassing sustainably sourced rare earths from Malawi, rare earth magnet recycling in the UK, via its interest in HyProMag, and strategic options to develop EU and UK rare earth separation and refining capacity," said Dawes.

AIM-listed Mkango controls a 25% stake in rare-earth recycling company HyProMag  through a subsidary, and there is an option to increase the holding to 49%.