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. The project expects to produce 20,000 tonnes of high-value mixed rare earth carbonate and aims to reduce CO₂ emissions significantly. This investment highlights Africa’s potential in the global clean energy market.
Pensana, a rare earths developer, has secured approximately $268 million (£206.75 million) to finance the Longonjo rare earth project in Angola. The Africa Finance Corporation (AFC) has approved an $81.2 million contribution as part of a $160 million syndicated loan facility alongside South African bank Absa Bank, contingent upon the finalization of loan documentation and compliance with specific conditions. This facility aims to provide the necessary senior funding for the initial phase of Longonjo, managed by Pensana’s 84%-owned subsidiary, Ozango Minerais, covering around 60% of phase one funding.
Furthermore, the AFC has authorized a $54.9 million investment via a convertible loan. Both equity investments at the subsidiary level will depend on the finalization of definitive agreements and fulfillments of preconditions. The Angolan Sovereign Wealth Fund (FSDEA) has also contributed a $15 million (Kz13.79 million) bridging loan and approved an additional $38 million in equity and convertible loans for the project.
Samaila Zubairu, AFC’s president and CEO, 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.” He emphasized that partnerships like the one between Pensana and FSDEA on the Longonjo project demonstrate a commitment to unlocking Africa’s mineral resources through local value addition and responsible mining practices.
Located in the Huambo district, about 350 kilometers southeast of Luanda, the Longonjo project aims to produce approximately 20,000 tonnes per annum (tpa) of high-value mixed rare earth carbonate (MREC). Over the past six years, Pensana has invested over $70 million in exploration and environmental studies at Longonjo, identifying a near-surface JORC-compliant reserve of 30 million tonnes (mt) at a grade of 2.55% TREO, which includes 166,000 tonnes of neodymium and praseodymium oxide.
The project is anticipated to have a mine life exceeding 20 years, supplying essential rare earths for permanent magnets utilized in electric vehicles and offshore wind turbines. When phase two production begins, the mine is projected to contribute approximately 5% of the worldwide rare earth elements in the form of high-value MREC. Further, independent estimates indicate that the Longonjo mine will significantly reduce CO₂ emissions by over 4mt due to its hydroelectric power source and access to the Atlantic Port of Lobito through the Lobito Corridor rail line. Additionally, Pensana initiated early-stage development of a $125 million rare earth processing hub at the Saltend Chemicals Park in Humber, UK, in 2021.
In summary, Pensana’s securing of $268 million for the Longonjo rare earth project signifies a significant advancement for rare earths development in Africa. The funding from the AFC and FSDEA will support crucial phases of the project, which aims to capitalize on Africa’s rich mineral reserves, contribute to clean energy transitions, and reduce CO₂ emissions. The Longonjo project not only underscores the region’s potential but also aims to enhance global energy security through responsible mining practices.
Original Source: www.mining-technology.com
