London-listed Pensana is progressing development of the Longonjo rare-earth project in Angola, with commissioning of mixed rare-earth carbonate production targeted for 2027. The project currently carries a value of approximately US$250 million and is designed for an operating life of about 20 years. Pensana has also secured approvals for a financing package of roughly US$268 million, subject to definitive documentation and the fulfilment of conditions precedent.
Longonjo financing structure
The financing structure previously envisaged around US$160 million of debt. Proposed lenders included the Africa Finance Corporation, with approximately US$81.2 million, and Absa, with about US$78.8 million. The wider financing package also included participation from Angola’s sovereign wealth fund, FSDEA, alongside convertible or equity-linked financing instruments.
Pensana’s development strategy has changed from its original plan for an integrated route extending from Angola into the United Kingdom. The company had initially proposed processing Longonjo material through a US$195 million to US$250 million separation facility at Saltend near Hull.
UK separation facility deferred
The Saltend facility has now been deferred as Pensana prioritises bringing Longonjo into production and generating cash flow before committing to the large downstream separation project. Under the revised sequencing, Longonjo’s initial production will consist of mixed rare-earth carbonate, rather than separated magnet oxides produced at a UK facility. The immediate downstream stage will therefore be outside the planned British processing route.
Pensana remains connected to Europe through its London listing, engineering base and the UK industrial strategy originally developed around the Saltend facility. The initial Longonjo value chain will terminate at mixed rare-earth carbonate rather than extending to separated magnet oxides in Britain.
Initial production and downstream processing
The sequencing of the project places mine development and initial production ahead of the major downstream separation investment. This reduces the requirement to construct the mining and UK separation operations simultaneously.
During the initial operating phase, Pensana will consequently require external separation capacity and arrangements for the offtake of Longonjo concentrate or carbonate. The company’s choice of an interim processing partner will determine the downstream route for material produced during this period. Global rare-earth separation remains dominated by China, making external separation capacity a key part of the initial Longonjo supply chain.
