MHM Metals strengthens foothold in U.S. recycling market

MHM Metals has inked its fourth U.S. contract for the supply of feedstock to the company’s planned salt cake and black dross recycling facility in Russellville, Kentucky.

The supply contract is an important milestone and a precursor to completing financing of the company’s first U.S. aluminium waste recycling facility in Russellville, the only closed-loop salt cake and black dross recycling facility in the U.S.

Importantly, this is also evidence of the company’s continued progression of its expansion into the high value U.S. recycling market.

This latest major contract is also MHM’s most important with the initial 12-month agreement expected to form the basis of a longer term agreement between the companies.

Under the agreement, the companies will share the recoveries of aluminium, salt/potash flux and aluminium oxides from MHM’s recycling process.

MHM is continuing discussions with additional producers of salt cake and black dross to secure further supply contracts.

The company plans to build the Russellville facility, its second processing facility in Kentucky, in two 125,000 tonne per annum stages for a total of 250,000 tonnes per annum capacity.

By building it in two stages it lowers initial capital expenditure for the facility and reduces idle capacity while additional processing contracts are finalized.

The second stage is expected to be funded via internal cash flows.