London-listed Pensana has secured full financing of $268 million for the development of its Longonjo rare earth project in Angola, marking a significant step forward for the global magnet metal supply chain.
The Africa Finance Corporation (AFC) has approved a $81.2 million contribution to a $160 million syndicated loan facility, alongside South Africa’s Absa Bank.
This facility will cover 60% of Phase 1 funding, subject to final loan documentation and conditions precedent.
The remaining funding will be raised through equity investments, including:
- $38 million from the Angolan Sovereign Wealth Fund (FSDEA) via equity and a convertible loan.
- $54.9 million from the AFC in the form of a convertible loan.
FSDEA’s investment follows a $15 million bridging loan previously provided to Pensana.
Pensana chairperson Paul Atherley highlighted the Longonjo project’s expected annual production of 20,000 tonnes of high-value mixed rare earth carbonate (MREC) and its role in creating over 430 high-value processing jobs, with over 50% allocated to young people.
AFC president and CEO Samaila Zubairu emphasized the project’s role in Africa’s economic transformation, securing diversified and sustainable supply chains, and strengthening global energy security in alignment with the Mineral Security Partnership.
FSDEA chairperson Armando Manuel noted that the project will boost Angola’s mining sector, contribute to economic diversification, and establish a crucial segment of the rare earth value chain for the global energy transition.
The Longonjo project includes an open-pit mine, concentrator, and recovery plants, with MREC exports planned via Lobito Port and the Lobito rail corridor.
Following the financing announcement, Pensana’s share price on the London Stock Exchange surged to 40.9p, up from 27.9p on March 17.
