Wedoany.com Report on Mar 4th, London-listed Pensana reports that the Longonjo Rare Earth Project in Angola is progressing as planned, with first production expected in 2027. The project's initial annual output is set at 2,400 tonnes of neodymium-praseodymium (NdPr) and 73 tonnes of dysprosium-terbium (DyTb), produced as clean mixed rare earth carbonate, with plans to increase output to 4,200 tonnes of NdPr and 122 tonnes of DyTb after 2030.
The Longonjo project has a resource exceeding 300 million tonnes, and the company plans 11,000 meters of drilling to potentially expand it to 1 billion tonnes, aiming to become one of the world's major rare earth deposits. The project will be powered by sustainable electricity from the Luaca Dam hydropower and connected to the Port of Lobito via the Lobito Corridor railway, which links the Kamoa-Kakula copper smelter in the Democratic Republic of Congo to the Atlantic coast.
Pensana states that major early construction facilities are already operational, including the camp, power, and water treatment facilities. The process plant platform and stockpiling areas are complete, piling preparations are progressing well, and earthworks for the tailings storage facility are underway. The aggregate and concrete batching plants are being commissioned in preparation for the first major concrete pour in March.
CEO Tim George said: "We are pleased that the engineering team has advanced the project to the main construction phase. Thanks to the efforts of Project Manager Kevin Botha and his team, and we look forward to an intensive 12-month construction period ahead."
Since Q4 2025, the quoted price for NdPr oxide has risen from around US$83/kg to over US$135/kg, reflecting growing demand for secure rare earth supplies. This price improvement positively impacts the project's economics, with increasing market interest in output exceeding planned production.
The company is strengthening partnerships with US magnet producers and has identified enhanced recovery processes that could potentially increase DyTb production fivefold, positioning it as a significant heavy rare earth producer for Western markets upon full operation. The technical team is evaluating additional recovery pathways to optimize output, with estimated incremental recovery expected to generate an additional US$155 million in revenue during the second phase.
Pensana has signed agreements with ReElement Technologies, Hanwa, Toyota Tsusho, and VACUUMSCHMELZE, and has received interest from other magnet producers such as Vulcan Elements. Demand signals are coming from downstream sectors including defense, automotive, aerospace, and data infrastructure, such as Amazon and Microsoft.
The company states that end-user demand underscores the strategic relevance of establishing a large-scale, secure rare earth supply chain, with the Longonjo project at the heart of a US-centric rare earth supply chain.
