Name of the Project
Longonjo neodymium/praseodymium project.

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

Project Owner/s
Rare earths developer 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 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 2.55% 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 project is expected to create 600 high-value jobs, of which more than 50% are expected to be allocated to young people.

Once in full production, the project will create an estimated 2 400 direct and indirect jobs.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
The project is expected to cost more than $325-million to bring into full production.

Planned Start/End Date
Longonjo is expected to produce 20 000 t of MREC starting in 2026 and 40 000 t of MREC from 2029 onwards following the planned expansion.

Latest Developments
Pan-African bank Absa Bank, through its Corporate and Investment Banking division, has conditionally approved a credit term sheet for its 50% participation in a syndicated loan facility of about $160-million.

This is subject to the conclusion of definitive loan documentation and the fulfilment of conditions precedent contained therein, as well as obtaining political and commercial risk insurance cover from a reputable political risk insurer on Absa’s exposure under the facility.

The facility will provide senior funding for the Phase 1 development of the company’s Longonjo mine through Pensana’s 84%-owned subsidiary Ozango Minerals.

The debt financing will aim to deliver about 60% of all project funding, with the balance of 40% to be funded through equity provided by Ozango.

Pensana chairperson Paul Atherley has indicated this as an important step towards finalising project funding.

The agreed term sheet follows the successful completion of a detailed technical, marketing, environmental and fiscal due diligence process, as well as conditional approval of the loan by Absa’s credit committee, with the legal due diligence process to be finalised.

Pensana has spent more than $70-million over the past six years on exploration, and technical and environmental studies on the Longonjo project.

Key Contracts, Suppliers and Consultants
ADP (main contractor); MCC (main construction); NCP International (equipment); Bushtec (accommodation facilities) and Grupo Nov (contractor).

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