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Songwe Hill

Songwe Hill is located in south-eastern Malawi

Songwe Hill hosts carbonatite-hosted rare earth mineralization and has been the subject of extensive environmental, drilling, metallurgical test work, and engineering studies.

Songwe Hill is located in the Phalombe District of the Southern Region of Malawi, approximately 70 kilometers (km) southeast of Zomba and 90km east-northeast of Blantyre, near the eastern border with Mozambique (latitude approximately 15°58’S and longitude approximately 35°39’E). 

The Project is accessible via national highways S144 and S145, with the latter passing through Migowi, approximately 15 km from Songwe Hill. From Migowi, an all-weather graded gravel road (T415) connects to the site.

Project Development Summary

Initial exploration was conducted by the Japan International Cooperation Agency (JICA) and the Metal Mining Agency of Japan (MMAJ) in 1988, which included geological mapping, sampling, and limited diamond drilling to assess the rare earth potential of the carbonatite complex.

Mkango entered the project in 2010 after securing Exclusive Prospecting License EPL 0284/10. Early exploration activities included litho-geochemical, soil, and channel sampling, geological mapping, ground magnetic and radiometric surveys, density measurements, and petrographic and mineralogical analyses, followed by Phase 1 and Phase 2 diamond drilling programs in 2011 and 2012, followed by a third phase in 2018 to expand and upgrade the resource. These campaigns collectively totaled 129 drillholes and confirmed significant rare earth mineralization associated with carbonatite and breccia zones.

In 2012, the Company published its first NI 43-101 Mineral Resource estimate, later updated in 2019. A Definitive Feasibility Study (DFS) was completed in July 2022, outlining an open-pit mine and integrated processing facilities. 

In January 2023, the Environmental Social and Health Impact Assessment (ESHIA) aligned with the International Finance Corporation Performance Standards for Environmental and Social Sustainability (IFC PS) was approved by the Malawi Environment Protection Authority (MEPA), and the Global Industry Standard for Tailings Management (GISTM) was adopted for tailings design and management. 

In July 2024, the Company entered into the MDA with the Government of Malawi, establishing the fiscal and regulatory framework applicable to Songwe Hill. Key terms of the MDA include: a 5% royalty on gross mine-gate revenue (net of post-mine-gate costs); a 30% corporate tax rate applicable under the Malawi Taxation Act; a 10% free, non-diluting equity interest in Songwe Hill granted to the Government of Malawi, which carries dividend rights, voting rights, and board representation.

In June 2025, Songwe Hill was designated by the European Commission as a strategic project under the CRMA, as one of 13 projects outside the European Union, and one of only four projects in Africa. 

In 2025, the Company obtained a Technical Report Summary pursuant to Regulation S-K 1300, which disclosed proven and probable mineral reserves totaling approximately 18.1 million tonnes grading 1.16% TREO and measured and indicated resources and inferred resources totaling approximately 4.1 million tonnes grading 1.04% TREO and 55.9 million tonnes grading 1.05% TREO, respectively.

Geology

Songwe Hill is situated within the Chilwa Alkaline Province of southern Malawi, a region characterized by late Jurassic to Cretaceous intrusions. The deposit occurs as a carbonatite intrusion — breccia complex on the margin of the Phalombe Plain, expressed as a steep-sided hill approximately 800 meters in diameter. The Chilwa Province comprises a series of alkaline silicate and carbonate intrusions, structurally emplaced into Precambrian basement rocks, with Songwe Hill representing one of the most prominent carbonatite centers in the province.

The Songwe Hill complex consists of multiple intrusive phases, including calcite carbonatite, fenite, breccia, and phonolite dykes. Mineralization is closely associated with carbonatite and carbonatite-rich breccias, which host the principal rare earth-bearing minerals synchysite and apatite, with minor florencite. Geological and geochemical modeling indicates a central carbonatite plug surrounded by breccias and fenite aureoles, cut by phonolite dykes. The complex has been affected by late-stage faulting, reflected in magnetic anomalies and localized foliation.

Exploration

Mkango has been exploring and evaluating the Songwe Hill deposit since January 2010. Following confirmation of the enriched zones, previously investigated by the Japan International Cooperation Agency and Metal Mining Agency of Japan (JICA and MMAJ, 1989), exploration focused on identifying the nature and extent of the REE-mineralised carbonatites and related rocks. Mkango’s exploration activities consisted of litho-geochemical sampling, soil sampling, channel sampling, geological mapping, ground magnetic, density and radiometric surveys, and petrographic/mineralogical analyses and culminated in diamond drilling campaigns in 2011, 2012 and 2018, the results of which are described in The MSA Group (2015, 2020), and taking of a bulk sample in 2018. Geological observations and interpretations and procedures related to exploration methodology were implemented and overseen by the Mkango geological team in Malawi.

Southward view of Songwe Hill overlaid with ground radiometric survey data of the thorium to potassium ratio (purple = highest ratio) and outline of mapped carbonatite (stippled white line).
Geological map of Songwe Hill.

Drilling Results and Mineral Resource Estimate

Diamond core drilling has been the primary exploration method employed at Songwe Hill. A total of 129 diamond drillholes were completed across three phases (2011, 2012, and 2018), targeting the carbonatite intrusion and associated breccias. Drill core was logged and sampled systematically, with sample intervals based on lithological boundaries and mineralization intensity. Density measurements were also taken, and quality assurance/quality control protocols included blanks, duplicates, and certified reference materials.

Surface exploration programs have included geological mapping, litho-geochemical sampling, and ground geophysical surveys (magnetic, radiometric, gravity, and NSAMT), which were used to refine the geological model and guide drilling. Bulk sampling and metallurgical test work were conducted to support process design and recovery optimization.

The Mineral Resource is reported within an optimized pit shell at a base case cut-off grade of 0.55% TREO, which the QPs consider appropriate for economic extraction. The total estimated Measured and Indicated Mineral Resource is approximately 4.1 Mt grading 1.04% TREO, containing 43 kt TREO, and the estimated Inferred Mineral Resource is approximately 55.9 Mt grading 1.05% TREO, containing 589 kt TREO.

The resource model is based on data from 129 diamond drillholes completed between 2011 and 2018, supported by geological mapping, geochemical sampling, and geophysical surveys. No additional drilling has occurred since 2018; however, the QPs consider the assumptions used for resource definition, including lithological domains and estimation methodology, to remain valid as of June 30, 2025. Resources are reported on an in-situ basis, assuming a rare earth metallurgical recovery of 39.6%, and exclude modifying factors applied for Mineral Reserves.

Southward oblique view of Songwe Hill with exploration access roads and camp (on right at foot of hill), showing drill collars in yellow (2011–2012) and red (2018). Image from 2016.
Map of all Mkango drill holes on a simplified geological map.

Mining Summary – Development & Operations

Songwe Hill will employ conventional open-pit mining methods using small to medium-scale diesel-hydraulic excavators and articulated dump trucks, selected to suit the steep-sided hill terrain and planned production rates. Mining will be conducted using standard drill-and-blast techniques, with 10-meter bench heights and controlled blasting to maintain slope stability. Ore and waste will be loaded by hydraulic shovels and hauled via internal haul roads to the run-of-mine (“ROM”) pad or designated waste dumps.

The operation will be fully mechanized, with drilling performed by down-the-hole rigs and blasting using emulsion explosives initiated electronically. Ore recovery is planned at 95%, with external dilution of 3% and internal dilution of 5% factored into the mine design. Waste rock and low-grade material will be stockpiled for potential future processing, while high-grade Ore will be delivered directly to the concentrator. Mining services such as dewatering, lighting, and in-pit maintenance will be supported by dedicated infrastructure.

Surface map of the updated resource showing all drill collars and traces (in black).

Mineral Processing

Songwe Hill will utilize a two-stage processing route comprising a flotation concentrator and a hydrometallurgical plant. Ore from the open-pit mine will first undergo crushing, ball milling, and fine grinding before flotation to produce a rare earth concentrate. The flotation circuit has been optimized through extensive pilot-scale test work to achieve recoveries of approximately 74% TREO at concentrate grades exceeding 11 – 15% TREO.

The hydrometallurgical plant will treat the flotation concentrate through gangue leaching, caustic conversion, cerium oxidation, and rare earth leaching, followed by purification and precipitation to produce an MREC product containing approximately 55% TREO (dry basis). By-products include gypsum, which is expected to be sold to cement manufacturers. Process water will be recycled via a lined TSF with reverse osmosis treatment to manage impurities.

Environmental, Social and Health impact studies

Mkango appointed an environmental consultancy to undertake the Environmental, Social and Health Impact Assessment (ESHIA) process. The ESHIA process was undertaken with in-country partners. Our consultancy compiled the ESHIA for the Project as stipulated in Section 31 of the Environment Management Act, 2017 (Act No. 19 of 2017) (the EMA), as well as in accordance with the IFC Performance Standards (PSs) and Good International Industry Practice (GIIP). The ESHIA was submitted to the Malawi Environment Protection Authority (MEPA) in July 2022 for their review and comment prior to finalisation and submission for permitting. The ESHIA identified all the expected environmental and social impacts associated with the Project, including the prevention of pollution, treatment of waste, the safeguarding of natural resources, progressive reclamation and rehabilitation, and the minimising of the effects of mining activities. The ESHIA was approved by MEPA on 22 December 2022.

Environmental and social baseline studies have been conducted by consultants in collaboration with a team of Malawian specialists. These studies are aligned with the requirements of the Equator Principles, the IFC Performance Standards as well as specific requirements and interpretations of Malawian Legislation. Baseline conditions for various biophysical and social environmental aspects were determined, considering seasonal variation and input from various stakeholders. The sections below provide a summary of the biophysical and socio-economic baseline of the Project area.