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- Pensana Rare Earths (PM8) has begun to study the recovery and purification of high-grade magnet metals discovered at the Longonjo project in Angola
- The project is a major supplier of rare-earth metals like neodymium and praseodymium
- Pensana says magnet metals form a crucial part of the electric vehicle and wind turbine industry
- The company is already in discussions with potential customers in China, Japan, Korea, Germany and the U.K.
- Pensana’s share price has jumped 13.6 per cent with shares trading for 25 cents apiece
Pensana Rare Earths (PM8) has begun studying downstream processing of the high-grade magnet metal concentrate at the Longonjo project in Angola.
Longonjo is being developed as one of the only major upstream supplies of NdPr (neodymium and praseodymium) magnet metals critical to energy transition and required by electric vehicle and offshore wind turbine manufactures.
Neodymium and praseodymium are rare-earth metals which are recognised for their success in the automotive and industrial power industries.
Pensana has previously reported a preliminary feasibility study (PFS), co-ordinated by Scottish Company Wood Group, of an average of 56,000 tonnes per year of NdPr concentrate for export.
Whilst Pensana’s strategy in the PFS is to process onsite and ship high-grade concentre, the new study will investigate the practicality of downstream processing by processing 50,000 tonnes per annum of concentrate into a high grade NdPr carbonate for export.
This could potentially enable Pensana to capture a substantially increased product value proportion in Angola.
“Energy will take centre stage at COP26 (2020 United Nations Climate Change Conference) this year. If we are to transform the world’s economy and reach net zero emissions by 2050 we need secure supplies of the metals which are crucial for energy transition, for electric vehicles and offshore wind turbines,” Baroness Northover the U.K. Prime Minister’s Trade Envoy for Angola said.
“The Pensana rare earth project will contribute to the achievement of these goals, at the same time bringing jobs and training opportunities to Angola as it opens up its economy and seeks to diversify away from reliance on oil,” he added.
The new study will review the economics of this, and preliminary studies have indicated that this is expected to require an increase in the capital cost of the project from US$131 million (AUD$194 million) to around US$200 million (AUD$297 million).
Preliminary discussions with potential customers and major trading houses have indicated that customers in China, Japan, Korea, Germany and the U.K. may be interested in improving high-grade NdPr carbonate for Pensana.
Pensana has also held further preliminary discussions with high wealth funds, international financial institutions and mining financiers who have indicated a strong interest in engaging further on the project as it develops through the definitive feasibility study (DFS) stages.
“Pensana is 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,” Chairman Paul Atherley commented.
Pensana’s share price has jumped 13.6 per cent with shares trading for 25 cents apiece at 12:35 pm AEDT.
