Pensana has raked in a $100 million stock investment by an unnamed strategic Investor in support of the UK company’s mine-to-magnet strategy. The move follows soon after a detailed evaluation of its developing Longonjo property in Angola resulted in jumping by five times its content of rare earths for magnet applications — elevating the property’s status as an important potential future provider of magnetic feedstock outside China.
The funds will be used to maintain the Longonjo mine development ahead of the U.S. ban on use of Chinese-origin rare earth magnets/materials in American weapon systems from 2027 and to provide an alternative source for civilian use of NdPr following the announced 25% tariff on rare earths from China starting in 2026, fund additional drilling programs to advance the property life to become one of the largest rare earth mines globally, developing co-products including HREOs alongside the magnet metals currently contemplated.
Construction at the site continues to advance, supported by the company’s major shareholder FSDEA, the Angola Sovereign Wealth Fund, which recently advanced the balance of the US$25 million facility.
“Once in production from 2027, Longonjo will be one the world’s largest producers of light and heavy rare earths capable of supporting the production of over 10,000 tons (annualy) of rare earth permanent magnets,” said Atherly.
The project consists of an open pit, concentrator and recovery plants, tailings storage facility, process water supply, bulk power supply, mine infrastructure, workshops, offices, accommodation village, recreational facilities, and other associated infrastructure. The operation will extract, concentrate, calcine and chemically refine the free dig material to produce a high-value mixed rare earth carbonate (MREC) to be railed 273km to the Atlantic port of Lobito for export.
The study dramatically lifts HREE production via enhanced minerals processing. By installing a selective Heavy Rare Earth Oxide (HREO) recovery circuit prior to the product precipitation process stream the recovery of Dysprosium (DyO) and Terbium (TbO), two of the most valuable heavy rare earth elements, into the MREC product can be significantly increased.
The findings suggest that the current 30 tons per annum of HREO contained within the MREC can be increased to up to 160 tons comprising 130 tons of DyO and 30 tons of TbO in the MREC product. Early discussions with potential offtake partners have indicated that this increased content of HREO in the MREC product would strengthen the demand for it and valuation.
The study is currently finalizing the capital and operating cost of the HREO recovery circuit, however the projected increase in revenue of the high value HREO, which trades at $208,000 per ton for Dysprosium oxide and $918,950 per ton for Terbium oxide, is expected to demonstrate that the HREO will make a strong positive economic contribution to the project.
“This evaluation has set Longonjo out as one of the few suppliers coming online in the near term capable of supporting the full mine-to-magnet supply chain with both light and heavy rare earths,” notes Tim George, CEO of Pensana. “Our offtake partners have been clear about their requirements and in response this circuit upgrade will further enhance Longonjo’s importance within the rare earth landscape.“
Pensana has spent $70 million over the past six years on exploration, technical and environmental studies on the project. It has delineated a near surface reserve of 22 million tons grading 3.04% TREO containing 139,457 tons of NdPrO making it one of the world’s largest and highest grade, undeveloped magnet metal rare earth deposits with a projected mine life of over 20 years. Phase 1 production aims for 20,000 tons of a highly marketable clean MREC. A second phase expansion would see production increase to 40,000 tons of MREC per year.
Offtake agreement with Vacuumschelmze
In October, Pensana signed a memorandum of understanding with magnetic technology company Vacuumschmelze GmbH of Germany which recently commissioned its eVAC Magnetics facility in Sumter, South Carolina, that will bolster rare-earth magnet production in the U.S. Key terms include a proposed offtake of MREC products from Longonjo to meet the deadline of the defense restrictions on rare-earth imports from China in 2027. The offtake would be for an initial five-year period, subject to extension and with pricing to be agreed. The agreement will support the production by eVAC of 2,000 tons per year of rare earth magnets initially rising to 12,000 tons per year by 2029.
Troy Thacker, executive chairman of eVAC commented: “A new partnership between VAC and Pensana is a leap forward in the fight to strengthen and diversify the Western supply chain for rare earth minerals, and we are grateful for the Trump Administration’s and the U.S. International Development Finance Corporation’s unwavering support and partnership in this effort.”
“We are delighted to be able to work with the eVAC team to establish a major mine to magnet supply chain in the US,” noted Atherly. “The Longonjo mine is one of the world’s largest undeveloped rare earth mines and Vacuumschmelze is a global leader in rare earth permanent magnets. The Longonjo mine is financed, in construction and scheduled for the commencement of production in early 2027 with a 20-year mine life. We are looking at accelerating this production timeline to late 2026 and have committed to a major exploration programme to expand the resource inventory.
For more info, see www.pensana.co.uk, www.vacuumschmelze.com.
