Ver Angola

Raw Materials

Chinese in talks to build rare earth mine in Huambo

Pensana Rare Earths Plc, which holds the concession for the rare earth project in Longonjo, in Huambo province, announced that it is in negotiations with a Chinese company to build the mine.


In a statement sent to the Australian Stock Exchange on Monday, Pensana announced that the Chinese state-owned company China Great Wall Industry Corp could be named as a contractor for the project's engineering, contracting and construction work.

China Great Wall also promised to help Pensana obtain financing from Chinese commercial banks, using credit insurance from China Export and Credit Insurance Corp, a Chinese state insurer.

Chinese funding, to be paid over a maximum period of 10 years, could go up to 85 percent of the project's development cost.

In the statement, the President of Pensana, Paul Atherly, said that China Great Wall has "a history of success in the development of major projects in Angola and financing from China".

The Longonjo project was approved by President João Lourenço and obtained funding from the Sovereign Fund of Angola, underlined Paul Atherly.

Pensana, already listed in Australia, was also listed on the main stock market on the London Stock Exchange on 6 July.

In the prospectus for the listing, the company points out that a “large proportion” of its customers will be in China, where demand for rare earths is increasing, with the Asian country forecasting the installation of wind projects with a total capacity of 250 gigawatts up to 2040.

The document states that the Chinese government is encouraging the import of rare earths through exemption from import tax and other tax benefits.

Rare earths are a group of 17 chemical elements that can be used in television screens and computers, cell phone batteries and electric cars and wind turbines.


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