Tim George, CEO (..and sometime locomotive driver) reports on the progress being made towards the Longonjo financing, which will see the project fully funded into production on a staged basis.
The main focus has been the re-engineering design which will reduce the upfront capital cost to US$200 million, making the project more readily financed.
The redesign will see Longonjo produce a standardised, highly marketable, radionuclide-free, Mixed Rare Earth Carbonate.
All of the selected vendors of the major and long lead time items have been re-engaged, with updated quotations secured in preparation for a Class 2 AACE study to meet the financier’s due diligence requirements.
Site infrastructure development continues with earthworks by Group Nov, electrical reticulation by Elektra, and water and sewerage services in preparation for camp construction.
Bulk reagent handling by the Trafigura/Mota Engil Lobito Corridor port and rail concessions is expected to realise logistic and operating cost benefits.
Following completion of the Wood FEED study, the engineering team has been strengthened with the appointment of Africa-based ADP group, part of the Lycopodium Group, which has built and commissioned metallurgical plants in Angola since 1997.
ADP will work with Pro Process, an African specialist hydrometallurgy engineering and modular fabrication company, to implement the detailed design and execution of the new design.
A key focus for the Company is the delivery of a strong Resettlement Action Plan and Livelihood Restoration Programme.
The project has been designed to ensure that it will not displace housing, nor any existing structures, and will involve the economic displacement of subsistence agricultural activities only, which are being compensated for on a land for land basis.
As activities on the ground ramp up the immediate benefit to the local and regional community is the creation of hundreds of high value jobs, enhanced by comprehensive training and skills transfer programmes.
Tim George: “We are pleased to confirm that the team is on schedule with the Stage 1 re-engineering to the US$200 million Capex design and are also well advanced on the financial due diligence for the main financing later this year.
We acknowledge and very much appreciate the ongoing support from the Government of Angola, the ongoing financial support from FSDEA and the engagement from ABSA and others for the financing and development of this important strategic minerals project over the next two years.
Longonjo hosts a world class, high-grade, near surface magnet metal rare-earth orebody, with direct access to affordable hydroelectric power and the Lobito Corridor rail and port infrastructure which are now both operated under recently announced long-term concession agreements.
Longonjo will produce a highly marketable, clean (radionuclide-free), Mixed Rare Earth Carbonate independent of the timing of any other developments.
We will continue to advise on Longonjo’s progress and expect to provide further news on results from exploration activities at the promising Coola Project, adjacent to Longonjo, in the near future.”
