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Highlights:

  • Pensana has begun main construction at Longonjo rare earths project following a US$25 million funding release.
  • Site development includes major contractors and engineering partners with ongoing work to expand workforce and complete production plant terracing.
  • Longonjo project targets initial output of 20,000 tonnes MREC annually, with a second phase expansion planned to double capacity.

Pensana Plc (LSE: PRE) has officially commenced main construction activities at its Longonjo rare earths project in Angola following the release of US$25 million in project financing from Angola’s sovereign wealth fund, FSDEA. This milestone marks the transition from preparatory groundwork to active construction, positioning the project for further development within its established timeline.

Construction is being overseen by Project Director Kevin Botha, a veteran project manager with over 40 years of experience in mining and infrastructure projects across Africa. Engineering and procurement work has commenced, with Pro-Process and ADP (Lycopodium RSA) formally engaged and now actively executing project activities.

Grupo Nov, the main construction contractor based in Angola, has mobilised to the site and is expanding its on-ground workforce to over 100 personnel. Additional earth-moving equipment is being delivered to support the completion of terracing in the designated production plant area. The company noted that earlier preparatory works helped facilitate a smoother transition into this next phase of development.

The Longonjo project is situated in the Huambo district of Angola, approximately 350 kilometres from the capital city Luanda. Over the past six years, Pensana has invested more than USD70 million into exploration, feasibility studies, and environmental assessments. The site hosts a JORC-compliant reserve of 22 million tonnes grading 3.04% total rare earth oxides (TREO), including 139,457 tonnes of neodymium-praseodymium oxide (NdPrO). The projected mine life exceeds 20 years.

Initial production capacity at Longonjo is set at 20,000 tonnes per year of mixed rare earth carbonate (MREC). A proposed second-phase expansion could double this to 40,000 tonnes annually representing an estimated 5% of global MREC output.

The construction and development team includes several technical and engineering firms with specialised expertise. MCC, the project’s owner’s team, brings a background in delivering large-scale infrastructure across Africa. Pro-Process will oversee modular hydrometallurgical plant design, while ADP (Lycopodium RSA) will provide mineral processing design services. Grupo Nov is managing general construction efforts, including civil works and site infrastructure.

Pensana previously received green bond assurance from S&P-rated CICERO and earned a gold sustainability rating from EcoVadis, acknowledging its approach to environmental, social, and governance (ESG) principles. The company estimates that the NdPr produced at Longonjo could contribute to a reduction of up to 10 million tonnes of greenhouse gas emissions over the mine's lifespan through its application in wind turbines and electric vehicles.

The project remains on schedule for an in-service date of late 2026, with major infrastructure works progressing as planned. The Pipestone II facility, another major project, is also 76% complete and expected to be operational by late 2025.