London-listed Pensana has achieved progress on construction of the Longonjo mine, in Angola.

The $250-million development is on target and on budget for first mixed rare earth carbonite (MREC) commissioning in 2027 with a 20-year mine life producing initially 20 000 t of clean MREC, expanding to 40 000 t in year four.

The company has spent $36-million on the direct mine and processing plant development costs and 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 total capital expenditure of $250-million currently committed under the procurement schedule.

A heavy rare earth recovery circuit optimisation is under way, targeting production of dysprosium and terbium of over 122 t/y, making Longonjo one of the western world’s largest heavy rare earth producers, Pensana highlights.

A modular separation facility is being engineered which will be scalable with the planned mine expansion and will include a metallisation circuit to convert both the light and heavy rare earth oxides into metal for direct supply to magnet manufacturers.

Pensana CEO Tim George highlights that detailed design has progressed well and resulted in securing the bulk of the procurement programme and consequent fabrication processes, significantly reducing possible capital overruns.

“We now look forward to the progressive arrival of the main process plant equipment currently being manufactured offsite and completing the balance of the main construction phase in the coming year,” he avers.

Meanwhile, Pensana’s downstream separation and metal conversion strategy, combined with the proposed offtake arrangements, are aimed at establishing an independent mine-to-magnet supply chain supporting US and international magnet makers and automotive original-equipment manufacturers (OEMs) and other industrial customers.

In June 2025, Pensana signed a non-binding memorandum of understanding with Toyota Tsusho Corporation, the trading arm of the Toyota Group, for the proposed offtake of up to 20 000 t/y MREC from Longonjo over a five-year period, with pricing to be agreed.

The US mine-to-magnet strategy is anchored by a $165-million strategic investment from Cascade Natural Resources alongside up to $160-million ABSA debt financing underpinned by political and commercial risk insurance by US EXIM.

A multi-partner offtake framework has been established anchored by Toyota Tsusho (Japan), ReElement Technologies (US) and VAC/eVAC Magnetics (US/Germany), spanning the rare earth value chain.

All the major Japanese trading houses have been engaged, including Hanwa, which is sponsoring an investigation into rare earth separation with the Japanese government under METI’s Global South Initiative.

Currently engaged partners include all three of the main Japanese magnet producers (Shin-Etsu, Proterial, and TDK and Tier 1 suppliers in Japan (Honda, Nissan and Daido Electronics), and automotive OEMs in Europe (Mercedes, JLR, BMW and VW) and the US (Tesla and General Motors).

Preparations for a Nasdaq listing are under way to broaden access to US capital markets.

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

“Once in full production, it 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 earth supply chain supporting the Japanese, US and European economies,” says Pensana chairperson Paul Atherley.