London-listed rare earths miner Pensana has entered into a nonbinding memorandum of understanding (MoU) with Japanese trading group Hanwa for the offtake of up to 20,000 tons per year (t/y) of mixed rare earth carbonate (MREC).
Pensana owns 84% of the Longonjo neodymium/praseodymium project in Angola, which is set to initially produce 20,000 t/y of MREC in 2026, with plans to ramp up production to 40,000 t/y by 2029 through planned expansions.
Under the MoU, Hanwa and Pensana will collaborate on the global marketing and distribution of MREC and work together to develop a strategic and sustainable supply chain for magnet metal materials.
Hanwa is also exploring the possibility of deeper cooperation with Pensana, including potential investments in both upstream and downstream projects.
The goal is to provide low-carbon magnet metal materials to Hanwa’s customers and future partners.
In addition, Hanwa is considering offering financial support and exploring opportunities for government and institutional backing for Pensana’s various projects.
These projects include Coola and the Sulima West expansion, which involves a separation and metallization initiative.
“We view this MoU as a pathway to finalizing a long-term agreement with Pensana, ensuring the delivery of high-quality magnet metal products with leading environmental, social, and governance benefits to Hanwa’s global customers,” Hanwa commented.
