Pensana has secured $268 million in funding for the Longonjo rare earth project in Angola, including an $81.2 million loan from the AFC. The project aims to produce 20,000 tpa of mixed rare earth carbonate and is expected to significantly contribute to the global rare earth supply chain while reducing CO₂ emissions.
Pensana has secured approximately $268 million in financing for its Longonjo rare earth project in Angola. The Africa Finance Corporation (AFC) will contribute $81.2 million through a $160 million syndicated loan facility, which involves partnering with Absa Bank. This loan is dependent on finalizing documentation and certain conditions and will provide senior funding for phase one of the project, covering around 60% of its costs.
In addition to the loan facility, the AFC has approved a $54.9 million investment through a convertible loan, which is subject to definitive agreements. The Angolan Sovereign Wealth Fund (FSDEA) has committed a $15 million bridging loan and approved an additional $38 million in equity and convertible loans to support the Longonjo project.
AFC president and CEO Samaila Zubairu highlighted Africa’s potential in the rare earth sector, 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 the importance of partnerships that enhance local development through responsible mining practices.
Situated in the Huambo district, 350 km southeast of Luanda, the Longonjo project is projected to produce about 20,000 tonnes per annum of mixed rare earth carbonate (MREC). Pensana has invested over $70 million in exploration and studies over the past six years, identifying a JORC-compliant reserve of 30 million tonnes with a 2.55% TREO grade, including significant quantities of neodymium and praseodymium oxide.
With an anticipated mine life exceeding 20 years, Longonjo is expected to supply essential rare earths for products like electric vehicle magnets and wind turbines. Once phase two begins, the mine could produce 5% of the world’s rare earth elements. Additionally, the project’s integration of hydroelectric power and access to the Atlantic Port of Lobito via the Lobito Corridor rail line is expected to result in a reduction of over 4 million tonnes of CO₂ emissions.
Pensana also initiated a $125 million rare earth processing hub development at Saltend Chemicals Park in Humber, UK, back in 2021, indicating its broader strategic focus on establishing a comprehensive rare earth supply chain.
In summary, Pensana’s Longonjo project in Angola is garnering significant financial support, with a total of $268 million in funding pledged. The AFC and FSDEA play crucial roles in this investment, reflecting the strategic importance of Africa’s rare earth resources in global energy security. The project promises substantial environmental benefits, alongside contributing to the supply chain for clean energy technologies.
Original Source: www.mining-technology.com
