Angola’s Longonjo Rare Earth Mine Delayed to 2028 as Funding Talks Continue

Angola’s Longonjo rare earth project is now expected to begin production in early 2028, a year later than previously planned, as developer Pensana Plc works to secure additional funding for construction.

Pensana has moved its expected production date to early 2028 as it works to secure the money needed to advance Longonjo. The project received backing from Angola’s sovereign wealth fund, Fundo Soberano de Angola (FSDEA), when construction started in May 2025.

In September, the company said it had scaled back work on detailed construction design, expensive site activities and long-lead procurement items while it waited for financing to be finalised. Pensana puts the project’s completion at 30%.

Pensana Seeks Up to $90 Million

The company is now looking to raise $75 million to $90 million from equity investors. It is also in discussions with Absa and the Export-Import Bank of the United States over loans to support the development.

Cascade Natural Resources Limited has separately committed to invest $165 million in return for interests in Pensana and its subsidiaries. So far, Pensana has received $15 million under the agreement. The company has not provided a date for payment of the remaining amount.

Until further funding becomes available, the timing of construction work remains a key consideration for Pensana as it targets commissioning in January 2028.

Rare Earth Supply for Electric Vehicles and Wind Turbines

Longonjo is designed to produce an initial 20,000 tonnes of mixed rare earth carbonate (MREC) annually. The project has an estimated initial capital cost of $250 million.

The product will contain neodymium and praseodymium, light rare earth elements used to manufacture permanent magnets for electric vehicle motors, wind turbines and electronic equipment.

Pensana plans to begin commissioning the mine in January 2028, with full production capacity targeted for September of that year.

Royalties and Local Benefits

Under its agreement with the Angolan government, Pensana will pay royalties equal to 2% of revenue generated by the mine, in addition to applicable taxes and other charges. The project is also expected to create jobs and support community development in the surrounding area. With construction reported at 30% completion, the company must secure additional funding to advance the remaining work and meet its revised schedule, which targets commissioning in January 2028 and full production capacity by September.