RCS - Pensana PLC - Operational Update for Saltend and Longonjo

PensanaAnnouncement

28/11/2022 07:00

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RNS Number : 6977H  Pensana PLC  28 November 2022

28 NOVEMBER 2022

 

 

 

Pensana Plc

("Pensana" or the "Company")

 

Operational Update for Saltend and Longonjo

 

 

Following the Company's operational update of 26 October 2022, Pensana is
pleased to report that Project Delivery Teams for each of the Saltend and
Longonjo projects have moved on-site and have commenced the
early construction programmes.

Saltend

 

At Saltend, the Company's principal contractor, Wood, is on-site,
overseeing Yorkshire Water's nominated contractor for the relocation of
existing pipework along the site's western boundary. This is progressing well
as part of the activities to enable the main contractual works to commence
early in the New Year.

The contracts for the earthworks have been assessed for imminent award, per
the construction plan schedule, and are overseen by the Wood, which has been
appointed to supervise these contracts alongside Pensana's recently appointed
owners' team construction manager, Mark O'Rourke.

Saltend now has 24/7 site security following the installation of the
construction offices, security and welfare cabins and the development of the
site access locations.

Longonjo

 

The Longonjo earthworks and civils contractor, Grupo Nov, has mobilised to
site. Ground clearing of the area for the main construction camp has been
undertaken. The fabrication of the construction camp buildings by Bushtec at
their plant in South Africa, is progressing well and is on schedule for
delivery to site in January 2023.

Kick-off site sessions were held with the sub-contractors appointed for site
electrical reticulation (Electra) and main HT/LT sub-stations (Enerline), who
completed their pre-mobilisation site inspections alongside the Pensana
owners' team.

Contractors associated with the process water supply (ERM), tailings storage
facilities (SRK), and waste management services (AES) have participated as
part of the ongoing detailed design development workstreams.

Under the Stakeholder Engagement Program, updates on the Longonjo site
activities were presented by Project Director, Kevin Botha, to the Governor of
Huambo and the Longonjo Administrator.

Sessions have been held with Port of Lobito operations and local suppliers of
construction materials to confirm arrangements for the main construction
requirements.

 Environment Social Governance (ESG)

 

Pensana's ESG commitment to ensure direct long-term economic benefit to
Longonjo's local communities is progressing well. Demonstration farming plots
have been installed on a dedicated area with multiple purposes of livelihood
restoration. This has demonstrated increased yields and crop optimisation,
providing food security for the Longonjo operations and delivering economic
benefit to the region. The demonstration plots also allow Pensana to assess
the most successful strategies to increase and enhance the natural habitat,
leading to an overall biodiversity net gain.

Operational readiness

 

Recruitment of key operational personnel for both Saltend and Longonjo is
continuing. The intention is for key operators to be part of the construction
process to assist them moving seamlessly into commissioning.

 

Tim George CEO commented:

 

"Following our previous update in October we are extremely pleased with the
progress at both sites. Our early construction management team has continued
to grow with the addition of Mark O'Rourke appointed as a construction manager
in Saltend.

The enabling works appointed last month are on-site delivering to project
schedule and making good progress. These critical developments will allow
us to move forward quickly in delivering independent and sustainable
world-class rare earth facilities at both our operations."

 

- 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

George Zacharias, Group Company Secretary

 

Media enquiries:

FGS Global:

Gordon Simpson / Richard
Crowley
Pensana-LON@fgsglobal.com

 

 

About Pensana Plc

The electrification of motive power is the most important part of the energy
transition if we are to tackle climate change and one of the biggest energy
transitions in history. Magnet metal rare earths are central to that
transition, forming a critical part of the technology for efficient electric
vehicle motors and offshore wind turbines.

Pensana plans to establish its Saltend processing hub as an independent and
sustainable supplier of the key rare earth magnet metal oxides to a market
which is currently dominated by China.

The US$195 million Saltend facility is being designed to produce circa 12,500
tonnes per annum of rare earth products, of which 4,500 tonnes will be
neodymium and praseodymium oxide (NdPrO), representing over 5% of the world
market in 2025.

Pensana's plug-and-play facility is located within the world-class Saltend
Chemicals Park, a cluster of leading chemicals and renewable energy businesses
in the Humber Freeport and will create over 500 jobs during construction and
over 125 direct jobs once in production.

Powered by low-carbon offshore wind, it will be the first major separation
facility to be established in over a decade and will become one of the few
major producers located outside China.

Feedstock will be shipped as a clean, high purity mixed rare earth sulphate
(MRES) from the Company's Longonjo low-impact operations in Angola. The mine's
state-of-the-art concentrator and proprietary MRES processing plant are
designed by Wood to the highest international standards.

The operations will be powered by renewable energy from hydroelectric power
and connected to the Port of Lobito by the recently upgraded Benguela railway
line.

Pensana believes that provenance of critical rare earth materials supply, life
cycle analysis and GHG Scope 1, 2 and 3 emissions will all become significant
factors in supply chains for major customers.

The Company intends to offer customers an independently and sustainably
sourced supply of the metal oxides and carbonates of increasing importance to
a range of applications central to addressing the energy transition.

Pensana is also aiming to establish Saltend as an attractive alternative to
mining houses that may otherwise be limited to selling their products to
China, having designed the facility to be easily adapted to cater for a range
of rare earth feedstocks.

www.pensana.co.uk (http://www.pensana.co.uk)

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