Early stage construction works completed at rare earth mine

Rare earth exploration, mining and processing group, Pensana, has issued its unaudited interim results for the six months ended 31 December 2024.

The business is currently developing one of the world’s largest and highest-grade magnet metal rare earth mines at Longonjo in Angola. It also has an exploration project in Angola called Coola.

As previously reported, the business is developing a rare earth processing hub at Saltend, near Hull, to process the rare earths from Angola into magnet metal. The Saltend facility is being designed to produce around 12,500 tons per annum of rare earth oxides.

It is intended to establish a sustainable and independent rare earth supply chain, reducing reliance on China, which currently dominates the market.

In its half year results, Pensana has recorded a pre-tax loss of $2.9m/£2.2m (2023: $3.5m/£2.7m).

The business secured $3.4m/£2.6m worth of technical assistance grant funding from the United States International Development Finance Corporation.

And earlier this month, Pensana received approvals for the full financing totalling about $268m/£207.2m for the Longonjo rare earth project.

The group says it has now completed early stage construction works at Longonjo, including development of the civil works for the camp, accommodation units and facilities.

It has signed a non-binding Memorandum of Understanding with major Japanese trading group Hanwa.

Key terms included an offtake for up to 20,000 tonnes per annum of ultra-clean mixed rare earth carbonate from the Longonjo mine over five years.

Additionally, both parties agreed to co-operate on global marketing and distribution and on developing a strategic and sustainable supply chain for magnet metal materials.