Pensana has secured approximately $268 million for the Longonjo rare earth project in Angola, with substantial contributions from the Africa Finance Corporation and the Angolan Sovereign Wealth Fund. This funding will support phase one of the project, which aims to produce high-value mixed rare earth carbonate essential for clean energy technologies.
Pensana, a rare earths developer, has secured approximately $268 million (£206.75 million) for the advancement of the Longonjo rare earth project in Angola. This funding includes an $81.2 million contribution approved by the Africa Finance Corporation (AFC) as part of a $160 million syndicated loan facility, which is in collaboration with Absa Bank. The loan is contingent upon finalizing documentation and fulfilling specific conditions.
The loan facility aims to provide senior funding for phase one of Longonjo, operated by Pensana’s subsidiary, Ozango Minerais, which holds an 84% ownership stake. This facility will cover approximately 60% of the total phase one funding required. Furthermore, the AFC has also approved a $54.9 million investment via a convertible loan, subject to the completion of definitive agreements and prerequisites.
The Angolan Sovereign Wealth Fund (FSDEA) has previously extended a $15 million bridging loan and sanctioned an additional $38 million in equity and convertible loans to support the project. AFC President and CEO Samaila Zubairu remarked on Africa’s potential, stating, “With approximately one-third of the world’s rare earth mineral reserves, Africa is poised to become a cornerstone of the global clean energy revolution.”
The Longonjo project is situated in the Huambo district, about 350 km southeast of Luanda. It is anticipated to produce 20,000 tonnes per annum (tpa) of high-value mixed rare earth carbonate (MREC). Over the last six years, Pensana has invested over $70 million in exploration, technical, and environmental studies at Longonjo, identifying a JORC-compliant reserve of 30 million tonnes at a grade of 2.55% TREO, which includes 166,000 tonnes of neodymium and praseodymium oxide.
With a proposed mine life exceeding 20 years, the project will supply rare earths crucial for permanent magnets utilized in electric vehicles and offshore wind turbines. Upon completion of phase two production, the mine is expected to contribute to 5% of the global rare earth elements sourced in the form of high-value MREC. Independent estimates indicate that the Longonjo mine will prevent more than 4 million tonnes of CO₂ emissions due to its use of hydroelectric power and direct access to the Atlantic Port of Lobito via the Lobito Corridor rail line. Pensana commenced early-stage development of a $125 million rare earth processing hub at Saltend Chemicals Park in Humber, UK, in 2021.
The substantial investment of $268 million toward the Longonjo rare earth project in Angola represents a significant advancement in the sector. The collaboration between Pensana, the Africa Finance Corporation, and the Angolan Sovereign Wealth Fund underscores a commitment to leveraging Africa’s mineral resources for both local and global benefits. The project’s potential not only aims for substantial production of rare earths but also contributes to environmental sustainability by reducing CO₂ emissions. With a projected lifespan exceeding 20 years, Longonjo is well-positioned to play a pivotal role in the clean energy supply chain.
Original Source: www.mining-technology.com
