Pensana Secures $268 Million Financing for Longonjo Rare Earth Project in Angola

Pensana has secured $268 million in financing for the Longonjo rare earth project in Angola. The Africa Finance Corporation has approved contributions as part of a syndicated loan, and additional funding has been provided by the Angolan Sovereign Wealth Fund. The project aims to produce 20,000 tpa of rare earth carbonate, sustaining a 20-year mine life and reducing CO₂ emissions significantly.

Pensana, a developer of rare earths, has successfully secured approximately $268 million (£206.75 million) in financing to advance the Longonjo rare earth project located in Angola. The Africa Finance Corporation (AFC) has approved an $81.2 million contribution as a part of a $160 million syndicated loan facility, in partnership with South African bank Absa Bank, which is contingent upon finalizing loan documentation and satisfying certain conditions.

The loan facility is earmarked to provide senior funding for phase one of Longonjo, operated through Pensana’s 84%-owned subsidiary, Ozango Minerais, accounting for around 60% of the required funding for this phase. In addition, the AFC has authorized a $54.9 million investment via a convertible loan, contingent on final agreement terms and preconditions being met.

Furthermore, the Angolan Sovereign Wealth Fund (FSDEA) has made strides by providing a $15 million (Kz13.79 million) bridging loan, alongside approval for an additional $38 million in equity and convertible loans for the project. AFC President and CEO Samaila Zubairu remarked on the significance of Africa’s rare earth mineral reserves, stating the continent is primed to become integral to the global clean energy revolution.

The Longonjo project, situated in the Huambo district roughly 350 km southeast of Luanda, is anticipated to yield approximately 20,000 tonnes per annum (tpa) of high-value mixed rare earth carbonate (MREC). Over the past six years, Pensana has invested in excess of $70 million in exploration, technical, and environmental studies.

The company has identified a substantial near-surface JORC-compliant reserve of 30 million tonnes (mt) with a grade of 2.55% TREO, containing about 166,000 tonnes of neodymium and praseodymium oxide. Projected to have a mine life exceeding 20 years, Longonjo aims to supply essential rare earths for producing permanent magnets utilized in electric vehicles and offshore wind turbines.

Once phase two production commences, the mine is expected to account for approximately 5% of the world’s rare earth elements, produced in the form of high-value MREC. Additionally, it is estimated that Longonjo will reduce over 4 million tonnes of CO₂ emissions, benefiting from hydroelectric power and direct access to the Atlantic Port of Lobito through the Lobito Corridor rail line. In 2021, Pensana initiated early-stage development for a $125 million rare earth processing hub at the Saltend Chemicals Park located in Humber, UK.

In conclusion, Pensana has successfully obtained funding of $268 million for developing the Longonjo rare earth project in Angola. With significant contributions from the Africa Finance Corporation and the Angolan Sovereign Wealth Fund, the project is set to establish a critical role in the global clean energy sector. Ultimately, the Longonjo project is expected to produce essential materials for modern technologies while contributing to sustainable practices by reducing carbon emissions.

Original Source: www.mining-technology.com