Name of the Project
Longonjo neodymium/praseodymium project.

Location
The project is located in Huambo, Angola – 4 km from a modern rail line leading directly into the Atlantic Port of Lobito.

Project Owner/s
Pensana Rare Earths holds an 84% interest in Longonjo through its 84% holding in Angola-registered company Ozango Minerais, which owns 100% of the mining licence.

The Angolan government holds a 10% interest and the company’s Angolan partners hold the remaining 6%.

Project Description
Longonjo is one of the biggest rare earths deposits in the world.

Longonjo has indicated and inferred mineral resources of 226-million tonnes grading 1.47% rare-earth oxides and 0.33% neodymium/praseodymium. A prefeasibility study (PFS) has indicated the viability of a long-life, low-cost openpit operation based on a weather-zone component of the Longonjo resource estimate.

The focus of the PFS is on the initial development of the highest-grade portion of the near-surface weathered-zone mineralisation, which is a subset of the total project mineral resource estimate.

The PFS envisages openpit mining and the two-phase development of a two-million tonne-a-year processing plant and associated infrastructure, producing on average 56 000 t/y of neodymium/praseodymium concentrate for export.

The openpit will be a free dig operation with a very low strip ratio. The processing plant will use floatation to produce a high-grade rare-earth concentrate. The project has a nine-year life-of-mine.

The investment has been designed to meet the Equator Principles and Scope 1, 2 and 3 emissions under the Green House Gas Protocol.

Access to low-carbon power from the Luaca hydroelectric dam and local photovoltaic and storage facilities will allow for a very low carbon footprint, combined with closed-circuit zero discharge for process water and tailings with full end-of-life rehabilitation.

Potential Job Creation
The project will provide training for about 370 direct jobs at the mine. Local businesses are being prepared to become service providers. A particular focus is on the training of young women for technical and engineering roles.


Net Present Value/Internal Rate of Return
In the base case scenario, the project has an internal rate of return of 101% with a payback of 13 months.

Capital Expenditure
Initial capital costs are estimated at $130.6-million.

Planned Start/End Date
The project can be put into production in less than 18 months.

Latest Developments
Following its initial investment in March, the Angolan Sovereign Wealth Fund (FSDEA), has invested a further A$7.25-million in the Longonjo project.

The funds will advance the project, enabling it to complete the engineering design and testwork to reach bankable feasibility status later this year, list on the LSE in July, start exploration on the recently awarded Coola project, also in Angola, and  provide general working capital.

With billions of dollars in post-Covid-19 stimulus allocated to electric vehicles and offshore wind power generation, there is a looming shortfall in the supply of these magnet metals, says Pensana. 

Pensana and the FSDEA are also in discussions regarding the provision of a further $10-million, with the terms yet to be agreed.

Pensana chairperson Paul Atherley says the ongoing financial support from the FSDEA follows the recent presidential approval for the mining licence and the fiscal terms for the Longonjo project.

Subject to regulatory approvals, the planned listing on the LSE will give Pensana access to the burgeoning environment, social and corporate governance and generalist funds.

Key Contracts and Suppliers
Wood Group (lead engineer, TSF, infrastructure, mining, process plant engineering, cost estimation, surface water management); SRK Consulting (mineral resource estimate and model); HCV Africa (environmental- and social-impact assessment and baseline studies); Grupo Simples (environmental and social assessment, stakeholder engagement – Angola); AVM Advogadas (Angola legal); DLA Piper (Australia legal); Vic McLaglen (legal consultant); Auralia Metallurgy (metallurgical testwork facility – flotation); Bureau Veritas Minerals (metallurgical testwork – comminution); ALS Mineralogy (mineralogy testwork);

Dr Wally Witt  (geological consultant); ARQ Consulting (geotechnical studies); HCV Africa (hydrology, borefield testing and modelling); Conrad Partners (transport and rare earth concentrate market); and Nagrom Laboratories (sample assays).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Pensana Rare Earths, contact@pensana.co.uk.