US International Development Finance Corporation (DFC) has granted rare earths miner Pensana $3.4 million in funding to support studies aimed at expanding the Longonjo mine in Angola. Pensana’s planned expansion will cost approximately $100 million and is expected to double the mine’s production capacity to 40,000 tonnes per year of mixed rare earth carbonate (MREC). This output will include 4,200 tonnes of neodymium and praseodymium, accounting for about 5% of the global supply of these critical elements.
The DFC grant will also fund research into the recently discovered Coola deposits, with an eye towards potential downstream processing activities within Angola. This initiative aligns with the DFC’s technical assistance programme, part of the US Better Utilisation of Investments Leading to Development Act, which provides financial and advisory support to promote economic growth and prepare future investment opportunities.
The grant requires Pensana to match the funds over the next 27 months. The targeted projects could also qualify for future loan funding from the DFC, depending on the successful completion of feasibility studies. Anna Mann, a DFC technical assistance specialist, noted that this work complements the organisation’s involvement in Angola’s Lobito Corridor rail project, creating more opportunities for critical mineral processing and supply chain development in the region.
Pensana CEO Tim George welcomed the grant, viewing it as confirmation of the Longonjo project’s long-term potential and a step towards securing further financial support for future growth.
The collaboration between Pensana and the DFC highlights the growing importance of rare earth minerals and the strategic development of resources in Angola, setting the stage for more extensive industrial and economic progress in the region.
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.
