The construction of the Longonjo rare earths mine in Angola is progressing on target and according to budget, with the first mixed rare earth carbonate (MREC) expected to be produced in 2027, according to owner and operator, magnet metals miner Pensana.

Pensana reported in June that $36-million has been spent on direct mine and processing plant development, toward which the main construction programme is now 22% complete.

The major site earthworks, geotechnical drilling and test-piling programmes have been completed, and the on-site concrete batch and aggregate plants have been fully commissioned.

Manufacture of the long-lead process equipment is well advanced, with about $135-million of the $250-million total capital expenditure budget currently being committed under the procurement schedule.

The 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, says Pensana CEO Tim George.

Through this Huambo district-based project, Pensana aims to establish an independent mine-to-magnet supply chain, supporting US and international magnet makers, automotive original equipment manufacturers (OEMs) and other industrial customers.

Going forward, Pensana awaits the progressive arrival of the main process plant equipment currently being manufactured offsite and plans to complete the balance of the main construction phase in the coming year, he adds.

The $250-million development, with a projected 20-year life-of-mine, will initially produce 20 000 t of clean MREC, expanding to about 40 000 t in year four.

The openpit operation will extract, concentrate, calcine and chemically refine the near-surface free-dig carbonatite material to produce a high-value mixed MREC, which will be railed to the Port of Lobito for international export.

“Longonjo is one of the largest rare earth deposits ever to be developed and has the advantage of the world-class infrastructure of the Lobito Corridor, hydroelectric power and highly supportive Angolan government and sovereign wealth fund,” says Pensana chairperson Paul Atherley.

Once in full production, he says the mine 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 earths supply chain supporting the Japanese, US and European economies.

Critical Partnerships

Pensana notes that a multi-partner offtake framework has been established, anchored by diversified supply chain specialist Toyota Tsusho, US innovator in rare earth element and critical mineral refining ReElement Technologies, and advanced permanent magnet manufacturer VAC/eVAC Magnetics, spanning the rare earth value chain.

Further, all the major Japanese trading houses have been engaged, as well as South Korean conglomerate Hanwa, which is sponsoring an investigation into rare earth separation with the Japanese government under the Japanese Ministry of Economy, Trade, Industry Global South Initiative.

Currently engaged partners include all three of the main Japanese magnet producers – Shin-Etsu, Proterial and TDK – Tier 1 automotive and electronics suppliers in Japan including Honda, Nissan and Daido Electronics, as well as automotive OEMs in Europe and the US.

Pensana states that preparations for a Nasdaq listing are underway to broaden access to US capital markets.

Longonjo is located near to the national grid, linked to the 2 GW State-owned Laúca hydropower scheme, delivering low-cost, low-carbon electricity that underpins both operating economics and the company’s strong environmental credentials.

The mine is located 4 km from the Lobito Corridor rail line, enabling its products to be railed 273 km to the Atlantic Port of Lobito, providing fast, efficient and direct access to customers across the US, Europe and Asia.