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
Pensana has received approvals for full financing totalling about $268-million for the project. 

The board of the Africa Finance Corporation (AFC) has approved its participation in a syndicated loan facility, contributing $81.2-million, alongside major South African bank Absa Bank. The facility will provide senior funding for Phase 1 of the development of the project and will cover about 60% of the Phase 1 project funding.

This participation is subject to the conclusion of definitive loan documentation and the fulfilment of conditions precedent outlined therein.

In addition to the $15-million bridging loan already provided by the Angolan Sovereign Wealth Fund (FSDEA), the remaining Phase 1 funding will be provided through equity. 

FSDEA has approved an investment of $38-million, encompassing equity and a convertible loan, while the AFC has approved an investment of $54.9-million in the form of a convertible loan. Both equity investments will be made at the subsidiary level and are subject to the completion of definitive documentation and the fulfilment of conditions precedent.

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.