Posted on 10 Sep 2024
UK-listed rare earths developer Pensana has entered a non-binding MOU with major Japanese trading group Hanwa for an offtake from its Longonjo mine in Angola, Kallanish reports.
Under the preliminary deal, Hanwa would offtake up to 20,000 tonnes/year of mixed rare earth carbonate (MREC) from Pensana over five years. The Japanese firm will also evaluate the provision of financial support to Pensana projects. These include the Coola and Sulima west exploration expansion, separation facilities and the metallization project.
“We are delighted to be working with Hanwa with a view to establishing a long term and sustainable supply of high-quality magnet metal products from our Longonjo operations in Angola,” comments Pensana chairman Paul Atherley.
Additionally, the parties plan to cooperate on marketing and distribution of the critical minerals globally, developing a strategic and “sustainable” supply chain for magnet metal materials.
Hanwa said Monday the MOU is a “path to finalisation of a long-term agreement” to ensure high-quality magnet metal products with “leading ESG benefits” are available to its global customers.
Earlier this year, Pensana unveiled that the Longonjo project would produce 20,000 t/y of MREC. This capacity would double from 2029. First production is slated for mid-2026.
Pensana’s shares rose 4.30% after the announcement on Monday.
Source:Kallanish
