By:Energycapitalpower

Mining company Pensana has secured an $80 million loan from pan-African financial institution Absa Bank Limited as part of a $160 million credit facility arranged with multiple institutions.

Pensana will use the funding to support the Phase 1 development of the Longonjo rare earth project in angola.

“This is an important step towards finalising funding for a project which will have a major positive impact on the community, creating over 600 high value jobs of which over 50% are expected to be allocated to young people as well as supporting local businesses and farmers,” stated Paul Atherley, Chairman of Pensana.

Longonjo will generate 2,400 jobs and produce approximately 5% of the global magnet metal rare earths essential for wind turbines and electric vehicles, once fully operational, according to Atherley.

Pensana invested $70 million on exploration, technical and environmental studies in the $325 million project over the past six months. The project requires $2.3 billion in operational expenses over its 20-year lifespan, generating $6 billion in export revenue and contributing over $1 billion in taxes locally and regionally.