19th May 2025 11:44
(Alliance News) - Pensana PLC on Monday said it has started main construction at its Longonjo rare earths project in Angola, marking a milestone in the development of one of the world's "largest undeveloped magnet metal deposits".
The announcement follows the drawdown of the first USD25 million tranche of project finance from Angola's sovereign wealth fund FSDEA. Pensana, a London-based rare earths explorer, said engineering and procurement contracts have now been awarded, and the lead construction contractor Grupo Nov has mobilised an on-site workforce that will exceed 100 personnel.
Shares in Pensana were up 3.1% at 40.00 pence in London on Monday morning, just marking a 12-month-high.
Chief Executive Officer Tim George said: "The commencement of main construction activities is a pivotal moment for the project which has been six years in the making. Early momentum has been established... and now with the engineering and construction teams mobilised we are looking forward to substantive progress over the coming weeks."
Located in Huambo province, about 350 kilometres southeast of Angola's capital Luanda, the Longonjo project hosts a JORC-compliant reserve of 22 million tonnes at 3.04% total rare earth oxides, including 139,457 tonnes of neodymium-praseodymium oxide. Pensana said the mine has a life of over 20 years.
Initial annual production will be 20,000 tonnes of a mixed rare earth carbonate product. A proposed second-phase expansion would double output to 40,000 tonnes, representing around 5% of global supply suitable for use in permanent magnets for electric vehicles and wind turbines.
Pensana has invested more than USD70 million to date in exploration and technical work. The company says its NdPr output could displace up to 10 million tonnes of greenhouse gas emissions over the mine's life by enabling green technologies.
By Eva Castanedo, Alliance News reporter
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