ASX-listed Pensana Rare Earths has committed to studying downstream processing of the high-grade magnet metal concentrate it plans to produce at the Longonjo project, in Angola.
The study, which will form part of the current definitive feasibility study (DFS), will investigate the feasibility of the downstream processing of 50 000 t/y of concentrate into a high-grade neodymium and praseodymium carbonate for export, which the company says will enable it to capture a substantially increased proportion of the product value in Angola.
Preliminary studies have indicated that this is expected to require an increase in the capital cost of the project from $131-million to about $200-million.
Initial discussions with potential customers and major trading houses have indicated that customers in China, Japan, Korea, Germany and the UK may be interested in importing high-grade NdPr carbonate from Pensana.
The Longonjo project is being developed as one of the only major upstream suppliers of the NdPr magnet metals critical to energy transition, which are required by electric vehicle and offshore wind turbine manufacturers.
The project is being designed by Wood Group to high levels of environmental and social governance compliance and reporting.
Pensana has held preliminary discussions with sovereign wealth funds, international financial institutions and mining financiers, with the company noting a strong interest in engaging further on the project as it develops through the DFS stages.
Chairperson Paul Atherley said Pensana was investigating the potential of the Longonjo project to be one of the first major rare earth carbonate suppliers to be developed in a decade and to meet the growing demand for critical magnet metal materials.