Pensana Finances Development of Longonjo Rare Earth Mine in Angola

According to MiningWeekly, London-listed magnet metal supply chain developer Pensana has been granted a $268 million financing for the development of its Longonjo rare earth project in Angola.

The board of Africa Finance Corporation (AFC) has approved participation with financial services provider Absa Bank in a $160 million syndicated loan, with AFC's share amounting to $81.2 million, subject to the execution of final loan documentation and fulfillment of conditions precedent.

This financing will provide 60% of the funding required for the first phase of the Longonjo project.

The remaining funds for the first phase will be raised through equity financing, with the Angolan Sovereign Wealth Fund (FSDEA) approving a $38 million equity investment and a convertible note, and AFC approving a $54.9 million convertible note.

The equity investment will be made at the subsidiary level, subject to the execution of final documents and fulfillment of conditions precedent.

FSDEA's investment supplements a $15 million bridge loan previously provided to Pensana.

"We are very grateful to the AFC and FSDEA teams for their work in securing the financing for the Longonjo project."

"The Longonjo project will produce high-value green mixed rare earth carbonate (MREC) products annually, contributing positively to the community by creating 430 well-paid processing jobs. Over half of these positions will be offered to young people, while also supporting local businesses, service providers, and farmers," said Paul Atherley, President of Pensana.

"At AFC, we recognize the significant strategic value of African resources—not only for our economic transformation but also for building diversified, sustainable future supply chains. Our collaboration with Pensana and FSDEA on the Longonjo project demonstrates our commitment to unlocking Africa's mineral potential through local value addition, industrial growth, and responsible mining."

"By investing in Africa's rare earth industry, we are not only accelerating regional development but also enhancing global energy security, aligning with the vision of the Minerals Security Partnership," said Samaila Zubairu, President and CEO of AFC.

Armando Manuel, Chairman of FSDEA, added that the Longonjo project is strategically important to FSDEA and part of its commitment to promoting the development of Angola's mining sector.

"In addition to the significant economic benefits such as job creation and tax revenue, the project will play a crucial role in establishing key links in the value chain for critical industries in the global energy transition."

"As a major investor, FSDEA plays a vital role in unlocking the untapped potential of Angola's mining sector, which remains a key driver of economic diversification. With the support of Absa and AFC, this initiative aims to promote sustainable growth, enhance local capabilities, and solidify Angola's position in the international mining arena through collaborative efforts."

The Longonjo project includes the construction of an open-pit mine, a beneficiation plant, and a recycling facility, with the MREC products to be exported via the port of Lobito. The project is located near the Lobito railway corridor.