Lancaster’s Songwe Hill Rare Earths Project Receives $4.6M from DFC
After reaching Definitive Feasibility Study (DFS), British firm Lancaster Exploration’s Rare Earths Project at Songwe Hill in Malawi received financial support from the US International Development Finance Corporation (DFC) to the tune of USD 4.6 million. The funds will go toward front-end engineering design (FEED) and DFC is contemplating providing a loan of USD 100 million into the Project.
The Songwe Hill #RareEarths Projects was designated as a ‘strategic project’ under the Critical Raw Minerals Act in June 2025 by the European Union. The Project is vertically integrated with a refinery in Pulawy, Poland.
The Songwe Hill has an estimated reserve of 18.14 million tonnes graded at 1.16% total rare earth oxides (TREO). Annual production target is set a nearly 6,000 tonnes per annum of TREO.
Analysis of the apatite and synchysite mineral samples from the mine revealed the presence of 17 Rare Earth Elements (REE), including neodymium (Nd), Praseodymium (Pr), Disprosium (Dy), and Terbium (Tb). Its primary economic interest lies in the so-called heavy rare earths, which go into the production of high-performance magnets used in military equipment, wind turbines and electric vehicles.
Additionally, Lancaster Exploration is in talks with Crown PropTech for a merger that will enable a listing on Nasdaq under the new entity called Mkango Rare Earths.
Construction is scheduled to kick off in 2027 after the completion of the detailed engineering studies and design. SENET has been tasked to complete the mining studies, hydrometallurgical test work, environmental, socio-economic impact assessment, health & safety measures and other necessary studies for the Project.
Locally, the mine will carry out initial separation to produce mixed rare earth carbonate (MREC). The MREC will be transported by rail along the #NacalaCorridor to the port in Mozambique. Final separation will take place in Poland, which will be only the third such plant outside of China.