- The Africa Finance Corporation approved $81.2 million for the Longonjo project, forming part of a broader $160 million syndicated loan facility.
- The financial backing comprises syndicated loans, direct investments, and equity funding, including South Africa’s Absa Bank’s $80 million commitment.
Angola is poised to strengthen its position in the global rare earth metals market as Pensana, a leading mining company, secures full financing approval for the Longonjo Rare Earth Project.
With a total investment of $268 million, the project is set to advance into its first development phase. It will unlock new economic and employment opportunities while bolstering the global supply of critical minerals used in green technologies.
The Longonjo project’s financial backing is structured through syndicated loans, direct investments, and equity funding. The Africa Finance Corporation (AFC) has approved $81.2 million, forming part of a broader $160 million syndicated loan facility. South Africa’s Absa Bank has committed $80 million, further reinforcing regional financial collaboration in energy and resource development.
In addition, the Angolan Sovereign Wealth Fund contributes $15 million in direct funding, $38 million in equity financing, and $54.9 million from AFC, ensuring the funding is diversified and sustainable. The $160 million loan will cover approximately 60% of Phase 1 capital, setting the stage for an ambitious mining operation.
The Longonjo Rare Earth Project is a strategic asset for Angola, aligning with the country’s efforts to diversify its economy beyond oil and gas. Rare earth elements (REEs) are essential for modern technology, particularly in producing wind turbines, electric vehicles (EVs), and high-performance magnets—key components in the global push toward cleaner energy solutions.
According to Paul Atherley, CEO of Pensana, the Longonjo project is expected to produce an average of 20,000 tons per annum of high-value magnet rare earths. This production level will significantly contribute to the global supply chain, reducing dependency on dominant producers like China.
Beyond its contributions to the rare earth metals market, the project is poised to deliver significant socioeconomic benefits. Its first phase will create over 430 high-value processing jobs, boosting employment in Angola’s mining sector. As the project scales into full second-phase production, an estimated 2,400 direct and indirect jobs will be generated, offering local workers and professionals new career opportunities.
The project is also expected to enhance Angola’s industrial infrastructure, with ripple effects on transport, logistics, and energy development. The mining site will be integrated into regional trade networks, further solidifying Angola’s role in global mineral markets.
With strategic financial backing and strong government support, the Longonjo Rare Earth Project is set to become a key player in the rare earth metals industry. As global demand for sustainable energy solutions rises, Angola positions itself as a vital supplier of magnet metal rare earths, driving economic growth and reinforcing Africa’s role in the critical minerals sector.