Pensana secures $268 million in funding for the Longonjo rare earth project in Angola, with key contributions from AFC and FSDEA. The project is expected to produce 20,000 tonnes per annum of rare earths, vital for clean energy technologies. It has the potential to significantly reduce CO₂ emissions and contribute 5% to global rare earth supply.
Pensana, a rare earths developer, has successfully secured approximately $268 million (£206.75 million) to advance its Longonjo rare earth project in Angola. The Africa Finance Corporation (AFC) approved an $81.2 million contribution as part of a $160 million syndicated loan facility, in collaboration with South Africa’s Absa Bank, subject to final loan documentation and compliance with specific conditions. This funding will provide primary financing for phase one of Longonjo, which is run by Pensana’s subsidiary, Ozango Minerais, covering about 60% of the project’s initial funding needs.
Additionally, the AFC has authorized a $54.9 million investment through a convertible loan, while the Angolan Sovereign Wealth Fund (FSDEA) has already provided a $15 million bridging loan and approved an extra $38 million in equity and convertible loans for the initiative. AFC President and CEO Samaila Zubairu emphasized Africa’s potential in the global clean energy movement, noting, “Our partnership with Pensana and FSDEA on the Longonjo project reflects our unwavering commitment to unlocking Africa’s mineral potential.”
The Longonjo project is situated in the Huambo district, approximately 350 kilometers southeast of Luanda, and is anticipated to yield around 20,000 tonnes per annum of high-value mixed rare earth carbonate (MREC). Over the last six years, Pensana has invested over $70 million in exploration and environmental studies, identifying a JORC-compliant reserve of 30 million tonnes at a grade of 2.55% TREO, containing substantial amounts of neodymium and praseodymium oxide.
The mine is expected to have a lifespan exceeding 20 years, producing rare earth materials crucial for permanent magnets used in electric vehicles and offshore wind turbines. Following the commencement of phase two production, Longonjo is projected to generate approximately 5% of the world’s rare earth elements. Moreover, estimates indicate that the project will significantly reduce CO₂ emissions by over 4 million tonnes, owing to its use of hydroelectric power and direct access to the Atlantic Port of Lobito via the Lobito Corridor rail line. In 2021, Pensana also began developing a $125 million rare earth processing hub at the Saltend Chemicals Park in Humber, UK.
In summation, Pensana’s recent acquisition of $268 million for the Longonjo rare earth project marks a significant step towards advancing rare earth resource development in Africa. The partnership with AFC and FSDEA highlights the strategic importance of this project in meeting global energy demands and environmental goals. The anticipated output of the mine will play a crucial role in the clean energy sector and contribute to significant reductions in carbon emissions.
Original Source: www.mining-technology.com
