Angola’s Longonjo Rare Earth Project Secures USD 268 mn Funding

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London-based mining firm Pensana Plc (PRE.LSE) has announced full financing approval for its Longonjo rare earth project in Angola, securing approximately USD 268 million in funding. This investment will propel the Phase 1 development of the project, which is set to become a key supplier of rare earth metals essential for electric vehicles, wind turbines, and high-tech industries.

The syndicated loan facility will finance approximately 60% of Phase 1 development, with the remaining funds coming from equity investments. The Longonjo project is part of Angola’s broader economic diversification strategy, supported by FSDEA as a key investor. FSDEA Chairman Armando Manuel highlighted the economic and industrial impact of the project, which aims to establish Angola as a key player in the global rare earth supply chain.

Samaila Zubairu, President & CEO of AFC, emphasised Africa’s crucial role in the clean energy transition, noting that the continent holds one-third of the world’s rare earth mineral reserves. By investing in local value addition, industrial growth, and responsible mining, AFC aims to position Africa as a major supplier of critical materials for the renewable energy sector.

Longonjo, a World-Class Rare Earth Resource located in Huambo, 350km from Luanda, the Longonjo mine is set to become one of the largest undeveloped magnet metal rare earth deposits globally. Pensana has spent over USD 70 million on exploration and feasibility studies, confirming a JORC-compliant reserve of 30 million tonnes with an average grade of 2.55% TREO.

With growing global demand for electric vehicles (EVs) and renewable energy, the Longonjo project will play a vital role in securing diversified rare earth supply chains. Pensana’s sustainable mining approach ensures responsible resource extraction while supporting local businesses and workforce development. According to Pensana Chairman Paul Atherley, the financing milestone underscores strong investor confidence in Angola’s rare earth sector. He reiterated the project’s commitment to high environmental and social governance (ESG) standards, aligning with global best practices.

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The Longonjo rare earth project marks a significant milestone in Angola’s mining industry, attracting international investment and positioning the country as a key supplier of critical minerals for the energy transition. With full financing secured, construction is set to begin, paving the way for Angola’s emergence as a strategic rare earth producer in the global market.