LSE-listed Pensana Plc has provided an update on the construction of the Longonjo Mine in Angola together with details of the downstream separation and metal conversion strategy which combined with the proposed offtake arrangements are aimed at establishing an independent mine-tomagnet supply chain supporting U.S. and international magnet makers and automotive OEMs and other industrial customers.
Highlights at a Glance
- The $250 million development is on target and on budget for first MREC commissioning in 2027 with a 20 year mine life producing initially 20,000 tonnes of clean MREC expanding to 40,000 tonnes in Year four.
- $36 million has been spent on the direct mine and processing plant development costs and the main construction programme is now 22% complete. The major site earthworks, geotechnical, drilling and test-piling programmes have been completed and the on-site concrete batch and aggregate plants have been fully commissioned.
- Manufacture of the long-lead process equipment is well advanced, with approximately $135 million of total capex (US$250 million) expenditure currently committed under the procurement schedule.
- A heavy rare earth recovery circuit optimisation is underway, targeting a production of dysprosium and terbium production of over 122 tonnes per year, making Longonjo one of the western world’s largest heavy rare earth producers.
- A modular separation facility is being engineered which will be scalable with the planned mine expansion and will include a metallization circuit to convert both the light and heavy rare earth oxides into metal for direct supply to magnet manufacturers.
- Longonjo hosts one of the world’s largest undeveloped rare earth mines with a JORC Ore Reserve containing 139,457 tonnes of NdPrO and 3,689 tonnes of DbTyO with a mine of life more than 20 years based on near surface resources, with the potential to increase this to over one billion tonnes after the forthcoming drilling programme.
- The U.S. Mine-to-Magnet strategy is anchored by US$165 million strategic investment from Cascade Natural Resources alongside up to US$160 million ABSA debt financing underpinned by political and commercial risk insurance by US EXIM.
- A multi-partner offtake framework has been established anchored by Toyota Tsusho (Japan), ReElement Technologies (US), and VAC/eVAC Magnetics (US/Germany), spanning the rare earth value chain.
- All the major Japanese trading houses have been engaged, including Hanwa, who are sponsoring an investigation into rare earth separation with the Japanese government under METI’s Global South Initiative.
- Currently engaged partners include all three of the main Japanese magnet producers (ShinEtsu, Proterial, and TDK and tier-one suppliers in Japan (Honda, Nissan and DaidoElectronics), and leading automotive OEMs in Europe (Mercedes, JLR, BMW and VW) and the US (Tesla and General Motors).
- Preparations for a NASDAQ listing are underway to broaden access to US capital markets.
Tim George Pensana CEO commented: “We are delighted with the progress by the team on site led by Kevin Botha and Geraldine Tchimbali Máquina. Detailed design has progressed well and resulted in securing the bulk of the procurement program and consequent fabrication processes, thus significantly reducing possible capital overruns. We now look forward to the progressive arrival of the main process plant equipment currently being manufactured offsite and completing the balance of the main construction phase in the coming year.”
Paul Atherley Chairman commented: “Longonjo is one of the largest rare earth deposits ever to be developed and has the advantage of world class infrastructure of the Lobito Corridor, hydroelectric power and highly supportive Angolan government and sovereign wealth fund. Once in full production it will be one of the world’s biggest producers of both light and heavy rare earths and will form part of an integrated and independent rare earth supply chain supporting the Japanese, US and European economies.”
