By: Energy capital & power

Mining company Pensana has secured all the requisite approvals for the full financing of the Longonjo Rare Earth Project in Angola. Totaling $268 million, the funds will support phase one development at the mine. 

The financing package comprises $81.2 million approved by the Africa Finance Corporation as part of a $160 million syndicated loan facility. South Africa’s Absa Bank is providing an additional $80 million under the facility. The $160 million loan will cover 60% of Phase 1 capital, with additional contributions from the Angolan Sovereign Wealth Fund, including $15 million in direct funding, $38 million in equity funding and $54.9 million from the AFC.

“The Longonjo project will produce an average of around 20,000 tons per annum of clean high-value magnet rare earths and will have a major positive impact on the community, creating over 430 high value processing jobs,” stated Paul Atherley, CEO, Pensana.

He added that once in full second phase production, the project will create an estimated 2,400 direct and indirect jobs and will produce around 5% of the world’s magnet metal rare earths used for diverse applications including wind turbines and electric vehicles.