Pensana Plc (LON:PRE) has announced that it has secured $US 3.4 million of Technical Assistance grant funding (Grant Funds) from the U.S. International Development Finance Corporation (DFC), America’s development finance institution.
The Grant Funds will support technical assistance activities in the form of feasibility studies for doubling the capacity of the existing Longonjo mine design, addition of downstream refining in Angola as well as test work for the development of the Coola project orebodies.
The Technical Assistance program is part of the US Better Utilization of Investments Leading to Development (BUILD) Act, which is used to provide advice and financial assistance and prepare future deals for the DFC to offer further financial support stimulating development.
The Grant Funds have been earmarked for specific projects which have the potential to receive later loan funding for any necessary capital, contingent on the successful completion of associated feasibility studies, as follows:
- Facilitate the study for an increase of the current design run-of-mine throughput of the Longonjo Processing plant in Huambo, Angola from 800ktpa to 1.5mtpa and the resultant Mixed Rare Earth Carbonate (MREC) product from 20ktpa to 40ktpa.
- Feasibility study to determine the capital and operational costs of further MREC beneficiation in Angola through a REE Separation Plant.
- Completion of the metallurgical test work program underway on the Coola concession orebodies with initial focus on the surface Sulima West laterite deposit to accelerate plans to use this as an additional feedstock to the Longonjo Processing Plant.
The Grant Funds are to be equally matched by Pensana contributions over the next 27 months.
Anna Mann, DFC’s Technical Assistance Specialist commented – “Alongside the DFC’s participation in the Lobito Corridor, this complementary initiative at Longonjo opens the way to stimulate future growth in the area and is in line with our mandate to increase the supply and processing of critical minerals”.
Tim George, Pensana CEO commented – “The participation of DFC secured during their visit to Longonjo, alongside our recently announced relationship with Hanwa, recognises the significant further development potential of both the Longonjo and Coola Projects and a path to secure the longer term future funding requirements.”
About the U.S. International Development Finance Corporation
The U.S. International Development Finance Corporation (DFC) is America’s development finance institution. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today, investing across sectors including energy, healthcare, critical infrastructure and technology. DFC also provides financing for small businesses and women entrepreneurs to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.
About Longonjo
The electrification of motive power through EVs and Wind Turbines is the biggest energy transition in history. Adamas Intelligence forecasts that the global demand for rare-earth magnets will increase at a CAGR of 8.7% from 2024 to 2040.
Pensana owns one of the world’s largest undeveloped rare earth mines, one of only three with a JORC Reserve >100,000 tonnes of NdPr. Once in full production the Longonjo project located in Angola near Huambo on the Lobito Corridor will produce ~5% of world production of NdPr in the form of an exported mixed rare earth carbonate.
The upfront capital cost of US$217 million for the fully permitted mine and processing facilities is amongst the lowest amongst its peers making Pensana highly competitive.
Pensana has recently been awarded a Gold Medal by EcoVadis, a leading sustainability ratings provider, placing it in the top 5% of the companies assessed.
The ratings by EcoVadis are widely used by the automotive and offshore wind OEMs to monitor the ESG credentials of potential suppliers and are based on a detailed assessment of operations in the areas of environment, sustainability, procurement, labour and human rights and ethics.
The award follows the award by S&P Bond Rating Agency CICERO in 2022 which rated the Company’s operations as Light Green with Good Governance.
Pensana will continue to operate under the EcoVadis tracking and reporting system, as leadership in global sustainability is critical to its long-term growth strategy.
Pensana’s Blueprint for Sustainable Rare Earths, demonstrating our strategic commitment to ESG, can be found here:
Reduction of the Board
The Company has been in discussions around the need to restructure the size of the Company’s Board so as to align it more appropriately with its current market capitalization. Non-Executive Directors Jeremy Beeton and Baroness Lindsay Northover have accordingly offered to resign from the Board and their resignations have been accepted. The Company extends its heartfelt gratitude and thanks to both Lindsay and Jeremy for the valuable support and guidance that they have provided since their respective appointments to the Board. Both Jeremy and Lindsay will remain engaged with the Company in an ongoing advisory capacity.
