- Pensana Rare Earths (PM8) has spiked on the ASX this morning after revealing plans to build a rare earths processing facility in the United Kingdom
- The facility will cost around US$125 million (roughly A$162 million) to build and form part of the Saltend Chemicals Park in Yorkshire
- Pensana says once the facility is built it will be one of the largest rare earth oxide producers on the globe
- Importantly, its location in Saltend Chemicals Park gives Pensana ready access to the U.K.'s busiest port complex and a range of utilities and logistics services and workers with experience in the chemicals industry
- Today's news comes ahead of Pensana's planned delisting from the ASX, slated for February 24
- Shares in PM8 are up 4 per cent this morning to $1.68 per share
Pensana Rare Earths (PM8) has spiked on the ASX this morning after revealing plans to build a rare earths processing facility in the United Kingdom
The magnet metal specialist told shareholders this morning it has already submitted a planning application for the proposed rare earth oxide separation facility, which will be located at the Saltend Chemicals Park in Yorkshire.
All up, the facility is expected to cost around US$125 million (roughly A$162 million) to build and will create around 100 jobs once it is up-and-running.
Importantly, the finished product is designed to be one of the largest rare earth oxide producers on the globe.
Nevertheless, the application will take roughly three months to review before the facility can be given the green light — meaning ASX investors won't be able to reap the rewards of a positive result.
Pensana announced last week its plans to delist forth ASX on February 24, 2021, in order to focus on its primary listing on the London Stock Exchange (LSE).
Still, Pensana Chairman Paul Atherley said the company has received "enthusiastic" support from a range of stakeholders for the proposed Yorkshire facility, especially given the proposed location at the Saltend Chemicals Park.
"The plug and play services provided by the px Group at the world-class Saltend Chemicals Park have substantially reduced the capital cost of the proposed facility, allowing us to focus on the operational aspects of the investment and providing scope for our longer-term ambitions," Paul said.
According to Pensana, Saltend Chemicals Park is a cluster of top-end chemicals and renewable energy businesses, with the likes of BP Chemicals, and Air Products part of the complex.
Managed by the px Group, the park has had £500 million (around A$886 million) worth of investment over recent years.
Perhaps most importantly, however, is that Saltend Chemicals Park gives Pensana ready access to the U.K.'s busiest port complex, a range of utilities, power, logistics, and supply services, and a pool of skilled workers with experience in the chemicals industry.
Shares in PM8 are up 4.04 per cent following this morning's announcement, trading at $1.68 at 10:30 am AEDT.