A total of $268 million for the first construction phase.
The British company Pensana is developing the Longonjo mine in Angola. To advance the project, the Africa Finance Corporation (AFC) and South African bank Absa have committed to a $160 million loan (PDF). The AFC is a multilateral financial institution aimed at promoting infrastructure and economic development projects across Africa. The loan, which still needs to be approved, will cover about 60% of the costs for the mine’s first construction phase, set to begin later this year.
The remaining funding is already secured, with total costs amounting to $268 million. In addition to further support from the AFC, the Angolan Sovereign Wealth Fund (FSDEA) has also contributed funding.
Africa’s Untapped Potential in Rare Earths
Africa holds vast untapped reserves of rare earths, but the sector remains largely underdeveloped, also due to a lack of investment. As a key investor, FSDEA aims to highlight the untapped potential of Angola’s mining sector, said FSDEA Chairman Armando Manuel. Pensana Chairman Paul Atherley estimates that Longonjo’s future annual production will average 20,000 tonnes of mixed rare earth carbonate. A non-binding off-take agreement for five years has already been signed with the Japanese trading company Hanwa (PDF).
In addition to Longonjo, Pensana is developing the UK’s first rare earth refinery, located in the northeast of England (we previously reported). However, there have been no updates on this project for some time.
Photo: iStock/inkoly