Pensana, a rare earths miner listed on the London Stock Exchange, has entered into a nonbinding memorandum of understanding (MoU) with Japanese trading group Hanwa. The agreement covers the potential offtake of up to 20,000 tonnes per year of mixed rare earth carbonate (MREC). Pensana owns an 84% stake in the Longonjo neodymium/praseodymium project in Angola, which is projected to begin with an annual production of 20,000 tonnes of MREC in 2026. The company plans to double this output to 40,000 tonnes annually by 2029 through further expansions.
The partnership between Pensana and Hanwa aims to collaborate on the marketing and distribution of MREC globally. Additionally, both companies are focused on developing a strategic and sustainable supply chain for magnet metal materials. Hanwa is exploring broader cooperation, including potential investments in Pensana’s projects, both upstream and downstream, to ensure the supply of low-carbon magnet materials to its customers and future partners.
In addition to potential financial support, Hanwa is also considering collaboration in seeking opportunities from government and financial institutions to aid Pensana’s various projects. These include the Coola and Sulima West expansion projects, which are part of a broader separation and metallisation initiative.
Hanwa expressed its optimism about the MoU, stating that the agreement is a stepping stone towards securing a long-term partnership with Pensana, which will provide high-quality magnet metal products that offer strong environmental, social, and governance (ESG) benefits to Hanwa’s global customer base.
Pensana plc (LON:PRE) explores and mines neodymium, praseodymium, and rare earth minerals. The Company’s flagship assets are the Saltend rare earth refinery project in the United Kingdom and Longonjo neodymium and praseodymium (NdPr) Project in Angola.
