London-listed rare earths project developer Pensana has announced that one of its major potential customers has approved the product qualification specifications for proposed mixed rare earth carbonate (MREC) product from the Longonjo project, in Angola.
Longonjo is expected to produce 20 000 t of MREC from 2026 and 40 000 t of MREC from 2029 onwards following a planned expansion.
The Longonjo MREC contains 50% total rare earth oxide, of which 24% comprises neodymium and praseodymium (NdPr) with minimal impurities. It is also free of radionuclide.
Pensana CEO Tim George says this important product quality approval for the Longonjo MREC follows extensive pilot plant test work in Perth, Western Australia.
“Our understanding is that there is expected to be a shortage of high quality, clean product coming onto the market in the near future, and this puts us in a strong position when looking to secure offtake arrangements,” he adds.
The magnet metal NdPr is poised to grow at a compound yearly growth rate of 7.5% over the next decade, as the electrification of vehicles and installation of wind turbines generates growing demand.
At full production, the Longonjo mine will produce about 5% of world production of NdPr in the form of an exported MREC.
The upfront capital cost of $200-million for the fully permitted mine and processing facilities is among the lowest amongst its peers, which makes Pensana highly competitive.
Pensana also has a fully permitted $250-million downstream separation facility at the Saltend Chemicals Park in the Humber Freeport.
Financing for both the Longonjo and Saltend projects is currently under way.