Resource companies Mkango Resources (TSXV:MKA,OTC Pink:MKNGF) and Euro Manganese (TSXV:EMN,ASX:EMN,OTCQB:EUMNF) received boosts this week when their respective assets were designated ‘strategic projects’ under the EU’s Critical Raw Materials Act (CRMA).
On Monday (March 24), the European Commission released a list of 47 strategic critical raw materials projects. Located across 13 EU member states, they cover one or more segments of the raw material value chain.
They also account for 14 of the 17 strategic raw materials included in the CRMA.
Among them are Mkango’s Pulawy project, which has been recognized for its role in supplying rare earth oxides, and Euro Manganese’s Chvaletice project, a contributor to the European battery materials supply chain.
Mkango Resources’ Pulawy rare earths separation project
Mkango’s Pulawy project is expected to play a role in establishing a secure European supply chain for neodymium, praseodymium, dysprosium and terbium, which are used to make electric vehicles and wind turbines.
On February 17, the company signed a land lease agreement through its Polish subsidiary, Mkango Polska, in collaboration with Grupa Azoty Puławy. It facilitates the construction of a rare earths separation facility in Puławy, Poland.
The proposed facility aims to produce 2,000 metric tons per year of neodymium and praseodymium oxides, plus 50 metric tons per year of dysprosium and terbium oxides. Lanthanum cerium carbonate will also be produced at the site.
With strategic project status, Pulawy will benefit from expedited permitting processes under the CRMA, ensuring that Poland’s regulatory authorities adhere to a maximum 15 month timeline for processing and refining projects.
The project will also gain access to coordinated support from the European Commission, member states and financial institutions, facilitating financing opportunities and connections with potential offtakers.
Aside from its work at Pulawy, Mkango is focused on developing sustainable sources of rare earth elements, as well as leading in recycled rare earth magnet production through its subsidiary, Maginito.
Maginito holds an interest in HyProMag, which focuses on rare earth magnet recycling in the UK and Germany, and Mkango Rare Earths UK, which specializes in long-loop rare earth magnet recycling.
Euro Manganese’s Chvaletice manganese project
Euro Manganese’s Chvaletice manganese project, located in the Czech Republic, aims to become a major supplier of high-purity manganese for the European battery industry. The CRMA lists high-purity manganese as a strategic raw material, essential for electric vehicle batteries and the broader clean energy transition.
The Chvaletice project stands out as a waste-to-value initiative, focused on reprocessing old mine tailings rather than developing a new mine. The project represents the only sizable manganese resource within the EU, positioning Euro Manganese as a key player in the region’s battery materials supply chain.
With strategic project designation, Chvaletice will benefit from streamlined permitting processes and access to financial support from institutions such as the European Investment Bank and the European Bank for Reconstruction and Development. It will also be eligible for funding from the European Development Fund and Cohesion Fund.
The Czech government has recognized the Chvaletice manganese deposit as a strategic resource, reinforcing the project’s importance in ensuring Europe’s supply independence. In March 2024, the asset received environmental and social impact assessment approval from the Czech Ministry of Environment. In January of this year, Euro Manganese secured a determination of mining lease permit, marking a key milestone in the project’s permitting process.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
