en.Wedoany.com Reported - Pensana Plc, listed on the London Stock Exchange, has announced the latest progress on the development of the Longonjo rare earth mine in Angola, while simultaneously disclosing details of its downstream separation and metal conversion strategy combined with offtake arrangements. The initiative aims to build an independent "mine-to-magnet" supply chain to support magnet manufacturers, automotive OEMs, and industrial customers in the United States and internationally. The total investment for the project is $250 million, progressing on schedule and within budget, with the first batch of Mixed Rare Earth Carbonate (MREC) expected to commence production in 2027. The mine has a design life of 20 years, with an initial annual output of 20,000 tonnes of clean MREC, expanding to 40,000 tonnes by the fourth year.

Direct mine and processing plant development costs have reached $36 million, with 22% of the main construction work completed. Major earthworks, geotechnical work, drilling, and test piling have been finished, and the on-site concrete batching plant and aggregate plant are now fully operational. Manufacturing of long-lead process equipment is progressing well, with approximately $135 million in capital expenditure committed under the procurement plan. Optimization of the heavy rare earth recovery circuit is underway, targeting an annual output of over 122 tonnes of dysprosium and terbium, which will make Longonjo one of the largest heavy rare earth producers in the Western world. Pensana is designing modular separation facilities that will expand alongside the mine's growth and include a metallization circuit to convert light and heavy rare earth oxides into metals for direct supply to magnet manufacturers.

Longonjo hosts one of the world's largest undeveloped rare earth deposits, with JORC ore reserves containing 139,457 tonnes of praseodymium-neodymium oxide and 3,689 tonnes of dysprosium-terbium oxide. Based on near-surface resources, the mine has a lifespan exceeding 20 years, and an upcoming drilling program has the potential to increase resources to over 1 billion tonnes. The U.S. "mine-to-magnet" strategy is underpinned by a $165 million strategic investment from Cascade Natural Resources, alongside debt financing of up to $160 million from ABSA, which is backed by political and commercial risk insurance from the U.S. Export-Import Bank. The offtake framework is led by Toyota Tsusho (Japan), ReElement Technologies (U.S.), and VAC/eVAC Magnetics (U.S./Germany), covering the rare earth value chain. All major Japanese trading houses are involved, including Hanwa, which is sponsoring a rare earth separation study conducted jointly with the Japanese government as part of the Ministry of Economy, Trade and Industry's Global South Initiative. Current partners include Japan's three largest magnet manufacturers (Shin-Etsu Chemical, Proterial, and TDK), as well as Japanese Tier 1 suppliers (Honda, Nissan, and Daido Electronics), leading European automotive OEMs (Mercedes, Jaguar Land Rover, BMW, and Volkswagen), and U.S. OEMs (Tesla and General Motors). Pensana is preparing for a Nasdaq listing to broaden access to U.S. capital markets.

Pensana CEO Tim George stated that the on-site team, led by Kevin Botha and Geraldine Tchimbali Máquina, has made progress in detailed design and procurement, with most manufacturing processes already secured, significantly reducing the risk of capital overruns. The next steps will focus on the phased arrival of major process equipment manufactured off-site and completing the remaining work of the main construction phase. Chairman Paul Atherley noted that Longonjo, leveraging the Lobito Corridor infrastructure, hydroelectric power, and support from the Angolan government and sovereign wealth fund, will become one of the world's largest producers of light and heavy rare earths once fully operational, providing an integrated and independent rare earth supply for the economies of Japan, the United States, and Europe.

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