London, May 16, 2025 (Lusa) - The British company Pensana Plc has approved the financing outline for the start of operations at the Longonjo magnet metal rare earth mine in Angola, which will have the capacity to meet 2.5% of total demand for this mineral.
"Pensana is pleased to announce that, following Longonjo Finance's announcement on 18 March 2025, in which it announced the approval of the total financing for the Longonjo magnet metal rare earth mine, it has now agreed the terms and timing for the release of the first tranche of equity capital in the amount of US$25 million (€22.3 million)," reads a statement, which explains that the capital will be implemented by the Angola Sovereign Wealth Fund (FSDEA).
"We are extremely grateful to the FSDEA for its continued support for the development of the Longonjo project, the world's largest and richest undeveloped magnet metal rare earth project, which will generate hundreds of high-value local jobs, provide work for many local companies and, once in production, will generate substantial tax revenues for the Angolan government," said Pensana chairman Paul Atherley, quoted in the statement.
"Having already established the camp and site infrastructure, the availability of US$25 million will enable the start of main construction and put Angola on the map as an important player in the global rare earth supply chain," the British company's leader added.
With production scheduled to start in 2027, the Angolan Longonjo mine could meet 2.5% of global demand for magnet metal rare earths, according to the concessionaire.
The data was released in April by the chairman of the board of Ozango Minerais, a company whose shareholders include British company Pensana and FSDEA, as well as two Angolan minority shareholders.
"This is a mineral that is very useful in the context of energy transition," Alcídio José explained to journalists during a visit by a US diplomatic delegation to the Lobito Corridor, pointing to the growing interest in reducing carbon emissions at the beginning of last month.
The mineral in question is used in permanent magnets, a critical raw material for electric vehicles.
Located in Longonjo, about 70 kilometres from Huambo, in Angola's south-central province, the mine is served by the Lobito Corridor railway line and covers a perimeter of about 200 hectares in the exploration area.
"We are fortunate to have a significant reserve [of rare earths] here. In the first phase, our production will be equivalent to approximately 2.5% of global demand. When you look at that figure, it may seem small, but when you consider that this is a concentrated sector, 2.5% from an independent source in the first phase is very important," said the head of the company, which has a 35-year extendable concession.
"It is a sector that does not exist in many places in the world. Angola will be a point on the map that you might have to look for with a magnifying glass," he said, indicating an initial production of 20,000 tonnes per year of this rare earth concentrate.
MBA/AYLS // AYLS
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