REG-Pensana Plc: Longonjo Project Update

PensanaAnnouncement

04/03/2024 07:15

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

Pensana Plc

 

Long lead items orders placed and site preparation works well underway at
Longonjo

 

Pensana (PRE.L) (the Company) is pleased to provide the following update on
the Longonjo project:

 


 

Concrete foundations have been poured for the 316-person modular camp
manufactured in South Africa for despatch to site later this month.

The on-site team, under the leadership of experienced Project Manager Kevin
Botha, is continuing to make good progress with preparatory works ahead of
main construction anticipated in May 2024, with cold commissioning commencing
in August 2025.

 

An order has been placed with NCP International, a global supplier of new and
refurbished comminution equipment based in South Africa, for the US$2.3
million ball mill for delivery from Johannesburg to meet the construction and
commissioning timelines for the concentrator plant.

 

The detailed design and procurement documentation for other main long lead
time or critical path items, such as the thickeners and flotation columns in
the concentrator section, along with key equipment in the recovery/MREC
section, such as the sulphuric acid plant, have been completed and orders will
be placed with the selected vendors shortly.

 

Grupo Nov has completed the civils and services connections for the initial
section of the 316-person modular construction camp. The US$1.3 million camp
has been fabricated off site and is ready for shipment from Johannesburg to
site during March 2024.

 

All the site access roads have been completed within the licence area. The
5,000-litre potable water tank is ready for installation to support the
construction camp and the future plant facilities.

 

High priority is being given to community relations and in particular to the
resettlement action and livelihoods restoration plans which are progressing
according to plan and are being well received.

 

The agricultural demonstration plots are in their second year and continue to
generate excellent baseline data.  They are providing the opportunity to
train local farmers in the latest agricultural methods.

 

The mine and processing plant will be constructed from May 2024 and
commissioning of the various circuits will commence in March 2025 and continue
until final commissioning in April 2026.

 

A schedule of the expenditures is set out below.

 

 Quarterly Expenditures     US Dollars   Activity                                
 May - July 2024            5 044 000    Civil and Earth Works                   
 August – October 2024      18 889 000   Structural and Mechanical installation  
 November – January 2025    32 435 000   Platework and piping installation       
 February – April 2025      36 032 000   Electrical installation                 
 May -July 2025             36 185 000   Instrumentation installation            
 August – October 2025      38 274 000   Cold Commissioning                      
 November – January 2026    23 096 000   Hot Commissioning                       
 February – April 2026      6 476 000    Final Commissioning                     
 Total                      196 432 000                                          

 

Tim George CEO commented: “The growing on-site team, supported by
experienced contractor Grupo Nov, is fully operational and is well advanced
with the earth works and other preparatory works ahead of the commencement of
the main civils and earthworks campaigns in the weeks ahead.

 

We are particularly pleased with the attention to health and safety,
environmental performance, the training completed on site and the continued
focus on the community engagement programs. This will continue to be a
priority as we build out the workforce which will increase to over 650 people
on site at peak construction later this year.”
 
 

About Longonjo

 

The electrification of motive power through Electric Vehicles and Wind
Turbines is the biggest energy transition in history and is forecast to
generate a demand growth for magnet metal NdPr of 7.5% CAGR over the next
decade.

 

Pensana owns one of the world's largest undeveloped rare earth mines, and one
of only three with a JORC Reserve greater than 100,000 tonnes of NdPr.

 

Pensana recently announced that one of its major potential customers has
approved the product qualification specifications for Longonjo’s proposed
MREC product. The Longonjo MREC contains 50% Total Rare Earth Oxide of which
24% is NdPr with minimal impurities and is radionuclide-free.

 

Longonjo is expected to produce 20,000 tonnes of MREC commencing 2026 and
40,000 tonnes of MREC from 2029 onwards following the planned expansion.

 

At full production Longonjo will produce ~5% of world production of NdPr in
the form of an exported mixed rare earth carbonate.

 

The upfront capital cost of US$217 million for the fully permitted mine and
processing facilities is amongst the lowest amongst its peers.

   

The information contained within this announcement is considered by the
Company to constitute inside information as stipulated under the Market Abuse
Regulations (EU) No.596/2014. Upon the publication of this announcement via a
Regulatory Information Service, this inside information will be considered to
be in the public domain. The person responsible for arranging for the release
of this announcement on behalf of the Company is Paul Atherley, Chairman.

 

- ENDS –

 

For further information, please contact:

 

Shareholder/analyst enquiries:

Pensana Plc 

Paul Atherley, Chairman IR@pensana.co.uk 

Tim George, Chief Executive Officer

Rob Kaplan, Chief Financial Officer

 

 

 

 

 



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