Rare earths developer Pensana has procured approximately $268m (£206.75m) in funding for the development of the Longonjo rare earth project in Angola.
The Africa Finance Corporation (AFC) has approved an $81.2m contribution as part of a $160m syndicated loan facility, in partnership with South African bank Absa Bank, contingent on finalising loan documentation and meeting certain conditions.
The loan facility will provide senior funding for phase one of Longonjo, which is operated by Pensana’s 84%-owned subsidiary, Ozango Minerais. The facility will cover around 60% of the phase one funding for the Longonjo project.
The AFC has also sanctioned a $54.9m investment through a convertible loan. These equity investments at the subsidiary level are subject to the finalisation of definitive agreements and preconditions.
The Angolan Sovereign Wealth Fund (FSDEA) has already extended a $15m (Kz13.79m) bridging loan and has approved an additional $38m in equity and convertible loans for the project.
AFC president and CEO Samaila Zubairu said: “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.
“Our partnership with Pensana and FSDEA on the Longonjo project reflects our unwavering commitment to unlocking Africa’s mineral potential through local value addition, industrial growth and responsible mining.
“By investing in Africa’s rare earth sector, we are not only accelerating regional development but also strengthening global energy security in line with the aspirations of the Mineral Security Partnership.”
Located in the Huambo district, roughly 350km south-east of Luanda, the Longonjo project is expected to produce around 20,000 tonnes per annum (tpa) of high-value mixed rare earth carbonate (MREC).
Over the past six years, Pensana has invested more than $70m in exploration, technical and environmental studies at Longonjo.
The company has identified a near-surface JORC-compliant reserve of 30 million tonnes (mt) with a grade of 2.55% TREO, containing 166,000 tonnes of neodymium and praseodymium oxide.
With a projected mine life exceeding 20 years, the project is set to supply rare earths essential for permanent magnets used in electric vehicles and offshore wind turbines.
Once phase two production commences, the mine is expected to produce around 5% of the world’s rare earth elements in the form of a high-value MREC.
Furthermore, independent estimates suggest that the Longonjo mine, with hydroelectric power and direct access to the Atlantic Port of Lobito via the Lobito Corridor rail line, will cut more than 4mt of CO₂ emissions.
In 2021, Pensana began early-stage development of a $125m rare earth processing hub at the Saltend Chemicals Park in Humber, UK.
