Pensana’s Longonjo Mine 22% Complete as Angola Rare Earth Project Targets 2027 Startup and Global Supply Chain Role
London-listed Pensana is making steady progress on its $250 million Longonjo rare earth project in Angola, which remains on schedule and within budget for first mixed rare earth carbonate (MREC) production in 2027.
The project is expected to operate over a 20-year mine life, initially producing 20,000 tonnes per year of MREC, with planned expansion to 40,000 tonnes per year by year four.
Pensana reports that $36 million has already been spent on direct mine and processing plant development, while overall construction is now 22% complete.
Major earthworks, geotechnical studies, drilling, and test piling have been completed, and on-site concrete batching and aggregate plants are fully operational.
Manufacturing of long-lead processing equipment is well advanced, with approximately $135 million of the total $250 million capital cost already committed under procurement agreements.
Advancing Rare Earth Production Capacity
The company is also optimising a heavy rare earth recovery circuit aimed at producing more than 122 tonnes per year of dysprosium and terbium, positioning Longonjo as one of the largest heavy rare earth producers outside China.
A modular separation facility is being designed to scale with future expansion and will include a metallisation circuit to convert rare earth oxides into metal for direct supply to magnet manufacturers.
Pensana CEO Tim George said detailed engineering progress has enabled the company to secure most procurement packages, reducing the risk of cost overruns and supporting efficient construction execution.
He added that key processing equipment is currently being manufactured offsite and will be progressively delivered to site as the main construction phase advances.
Building a Global Rare Earth Supply Chain
Pensana’s downstream strategy includes rare earth separation and metal conversion to support a mine-to-magnet supply chain aimed at supplying US, European, and Asian industrial markets, including automotive and renewable energy sectors.
In June 2025, the company signed a non-binding memorandum of understanding with Toyota Tsusho Corporation for the potential offtake of up to 20,000 tonnes per year of MREC over five years, subject to pricing agreements.
The project is supported by a broader financing structure that includes a $165 million strategic investment from Cascade Natural Resources and up to $160 million in debt financing from ABSA, backed by political and commercial risk insurance from US EXIM.
Pensana has also established a multi-partner offtake framework involving ReElement Technologies and VAC/eVAC Magnetics, alongside engagement with major Japanese trading houses and global automotive and industrial manufacturers.
Preparations are also underway for a potential Nasdaq listing to expand access to US capital markets.
Strategic Importance of Longonjo
According to Pensana Chairperson Paul Atherley, Longonjo is one of the world’s largest undeveloped rare earth deposits and benefits from strong infrastructure, including the Lobito Corridor, hydroelectric power, and support from the Angolan government and sovereign wealth institutions.
Once fully operational, the project is expected to become a major global supplier of both light and heavy rare earths, playing a key role in strengthening diversified supply chains for magnets used in electric vehicles, renewable energy systems, and advanced manufacturing industries.
