Name of the Project
Longonjo neodymium/praseodymium project.

Location
Huambo, Angola – 4 km from a modern rail line leading directly into the Atlantic Ocean Port of Lobito.

Project Owner/s
Pensana Rare Earths holds an 84% interest in Longonjo through its 84% holding in Angola-registered company Ozango Minerais, which, in turn, owns 100% of the mining licence.

The Angolan government holds a 10% interest and the company’s Angolan partners hold the remaining 6%.

Project Description
Longonjo is one of the biggest rare earths deposits in the world, with an initial 20-year mine life.

The project has total proven and probable reserves of 30.1-million tonnes grading 0.55% neodymium/praseodymium oxide for 166 000 t neodymium/praseodymium and total rare-earth oxides (TREOs) of 767 000 t.

The mine execution plan is based on a staged development of the mine and processing facilities.

At full production, once the phased development is complete, the Longonjo mine will target production of up to 38 000 t/y of mixed rare-earth double sulphate or mixed rare-earth carbonate (MREC) containing 14 000 t of TREOs and up to 4 400 t of neodymium/praseodymium oxides. This equates to about 5% of the worldwide production of neodymium/praseodymium oxides a year for downstream processing or to be sold on the international market.

Initial feedstock will be shipped as a clean, high-purity mixed rare earth sulphate to Pensana’s Saltend rare-earth oxide separation facility, in the UK.

Potential Job Creation
The mine will employ about 650 people during construction and will create 420 permanent high-value jobs.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Initial capital costs are estimated at $200-million.

Planned Start/End Date
The project can be put into production in less than 18 months.

Latest Developments
Pensana has made significant strides at the Longonjo mine ahead of main construction starting later this year.

Civil works for the camp, the rehabilitation of the access road to the Longonjo railway station and the agricultural demonstration plots under the Livelihood Restoration Programme are under way.

The early-stage development activities are being funded by a $15-million bridging loan provided by the Angolan sovereign wealth fund Fundo Soberano de Angola ahead of the main finance.

The 4.5 km road linking the site to the Benguela railway line has been upgraded. The enhanced road features include an improved roadbed substructure, a redefined road profile and rapid drainage systems.

Serving as the primary route for inbound materials during construction and later for reagent import and the export of mixed rare-earth carbonate in containers, the road connects the mine to the Longonjo station for rail access to the Port of Lobito for shipping.

Several kilometres of overhead powerlines, together with an underground water supply and effluent disposal system, have been installed ahead of the arrival of the 350-person modular camp, which has been assembled in Johannesburg, South Africa.

The camp is being relocated to site and will be the primary operations base for the construction team.

“We have a strong team supporting the main construction, which is being managed by MCC – a leading project management team with a track record of delivering projects across Africa, including Angola. ADP, the main contractor, is an African minerals specialist in the detailed design, construction and commissioning of modular mineral processing plants with extensive development experience in Angola,” Pensana CEO Tim George has said.

Financing for each of the Longonjo and Saltend projects is under way.

Key Contracts, Suppliers and Consultants
ADP (main contractor); and MCC (main construction).

Contact Details for Project Information
Pensana Rare Earths, email admin@pensana.co.uk orir@pensana.co.uk.