PERTH (miningweekly.com) – The Angolan government has approved a mining title for ASX-listed Pensana Rare Earth’s Longonjo project.
The mining title allows Pensana to mine for rare earths, and is renewable up to 35 years, covering an area of 21 km2.
“The mining title is a major milestone for us in the rapid development of the Longonjo project and we are absolutely delighted to have reached it so quickly,” said Pensana CEO Tim George.
Under the mining investment contract, the Angolan government will be paid a 2% royalty on revenue and 20% national tax and a 5% municipal tax on revenue, following an initial two-year tax holiday.
Pensana will enjoy an exemption on custom duties on imported equipment and a dividend tax exemption for a period of three years
“The support of the Ministry in expediting the contract is very much acknowledged and is testament to Angola being ‘open for business’, even during the Covid-19 lockdown.
“We are excited about development of a mine which will not only create major social and economic benefits, and is being developed to the highest environmental, social and governance standards, but one which will become a major global supplier of the magnet metals critical to our clean energy future.”
Longonjo hosts a mineral resource of 240-million tonnes, grading 1.6% rare earth oxides for 3.85-million tonnes of rare earth oxides.