Pensana advances Longonjo rare earth project as construction reaches 22% completion

Pensana has reported significant progress at its flagship Longonjo rare earth project in Angola, with construction advancing on schedule and within budget as the company moves closer to establishing an integrated mine-to-magnet supply chain serving international manufacturers.

The London-listed company said the US$250 million development is on track for the first commissioning of mixed rare earth carbonate (MREC) production in 2027. The project is expected to operate for more than 20 years, initially producing 20,000 tonnes of clean MREC annually before expanding output to 40,000 tonnes by its fourth year of operation.

To date, approximately US$36 million has been spent on direct mine and processing plant development, with the overall construction programme now 22% complete. Major site preparation activities, including earthworks, geotechnical drilling and test piling, have been finalised, while on-site concrete batching and aggregate plants have been fully commissioned.

Pensana noted that procurement activities continue to progress, with the manufacture of long-lead processing equipment well underway. Around US$135 million of the total capital expenditure budget has already been committed under the project’s procurement schedule.

The company is also advancing plans to strengthen Longonjo’s role in the global rare earth market through the optimisation of a heavy rare earth recovery circuit. The initiative is targeting an annual production of more than 122 tonnes of dysprosium and terbium, positioning Longonjo among the largest heavy rare earth producers outside China.

In parallel, Pensana is engineering a modular separation facility that can be scaled alongside future mine expansions. The facility is expected to include metallisation capabilities, enabling the conversion of both light and heavy rare earth oxides into metals for direct supply to magnet manufacturers.

Longonjo is regarded as one of the world’s largest undeveloped rare earth deposits. According to Pensana, the project hosts a substantial JORC-compliant ore reserve containing significant quantities of neodymium-praseodymium (NdPr) and dysprosium-terbium (DyTb), providing a strong foundation for long-term production and future resource growth.

Pensana CEO Tim George said the project team had made strong progress in detailed design and procurement, helping to minimise the risk of capital cost overruns.

“We are delighted with the progress of the team on site. Detailed design has progressed well and resulted in securing the bulk of the procurement programme and consequent fabrication processes, thus significantly reducing possible capital overruns,” he said.

George added that the company now looks forward to the delivery of major processing plant equipment currently being manufactured off-site and completing the next phase of construction over the coming year.

Chairman Paul Atherley highlighted Longonjo’s strategic advantages, including its location along the Lobito Corridor, access to hydroelectric power and support from the Angolan government and sovereign wealth fund.

“Once in full production, it will be one of the world’s biggest producers of both light and heavy rare earths and will form part of an integrated and independent rare earth supply chain supporting the Japanese, US and European economies,” he said.