RCS - Pensana PLC - Pensana Launches ESG Strategy

PensanaAnnouncement

27/09/2022 07:00

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RNS Number : 6895A  Pensana PLC  27 September 2022

27 September 2022

 

Pensana Plc

("Pensana" or the "Company")

 

A Blueprint for Sustainable Rare Earths

 

Electrification of motive power is forecast to become the biggest energy
transition in history. Two of the biggest components of this transition are
the phasing out of internal combustion engines in favour of electric vehicles
and the rapid growth of offshore wind power, both of which are heavily
dependent of powerful rare earth permanent magnets.

 

Currently China supplies over 90% of these magnets and has made it clear that
it is going to need all its production for its own US$11 trillion 2060 carbon
neutral plan and, on top of this, feels that it is under no obligation to
supply them to the rest of the world.

 

An additional concern for European and US OEMs is that the current supply from
China may not meet their ESG standards.

 

Pensana is at the forefront of tackling these two challenges. By establishing
an independent and sustainable supply chain to the highest international
standards we are able to provide our customers with the assurances they need,
firstly in terms of ESG transparency and secondly in terms of supply chain
resilience.

 

Following our announcement on 20 September to partner with Polestar (Nasdaq:
PSNY) on its moon-shot goal of creating the first truly climate-neutral car by
2030, Pensana has released its strategic Blueprint for Sustainable Rare
Earths, which can be downloaded from www.pensana.co.uk/sustainability
(http://www.pensana.co.uk/sustainability) .

 

Pensana aims to produce the lowest embedded carbon products in the rare earth
industry as well as a deep and meaningful carbon reduction with the aim to
achieve net zero across the value chain by no later than 2040.

 

Pensana's actions will allow the business to place itself among the leading
companies addressing climate change issues.

 

The Company is making big strides towards establishing a climate-neutral
supply chain.

·    CICERO, Norway's foremost institute for climate research, awarded
Pensana Green Bond accreditation in July, rating the planned operations as
Light Green with a Governance score of Good.

·    Low carbon power will be provided at Saltend in the UK, following a
signed letter of intent securing a private wire connection to Yorkshire Energy
Park for 4MW rising to 10MW of low carbon electricity for 10 years. The 200MW
offshore wind connected battery will provide low carbon power for the
separation facility and later will power the conversion of NdPr oxides into
magnet metal.

·    We are partnering with Equinor on the H2H Saltend project studying
the use of low carbon hydrogen to recycle the seven tonnes of permanent
magnets in each of the 260-metre-high offshore wind turbines being installed
in the 3.6GW Dogger Bank windfarm.

·    Low cost, low carbon hydroelectric power will be provided at the
Longonjo operations in Angola under a ten-year contract. An innovative
processing route developed by the Pensana process team led by Chief Operations
Officer Rocky Smith, will recycle process chemicals.

·    In July we were delighted to welcome the Secretary of State at the
Department of Business, Energy and Industrial Strategy the Rt Hon Kwasi
Kwarteng MP to the Saltend ground breaking ceremony, and we were particularly
honoured that he chose to launch the UK's Critical Minerals Strategy at the
event.

 

Chairman Paul Atherley commented:

"The Pensana Blueprint for Sustainable Rare Earths is an important document as
it clearly sets out our commitment to all stakeholders and importantly to our
customers that we put the highest ESG standards at the heart of our
operations.

Sustainability is always going to be work in progress however I am most
grateful to the ESG Committee for its leadership on this Blueprint which
provides a clear pathway to embedding ESG into every decision, at every stage
and using independent experts to monitor our progress."

 

 

ESG Committee Chairperson's Introduction to the Pensana Blueprint to
Sustainable Rare Earths

The world is waking up to the climate crisis, which is one of the biggest
challenges facing society today, with the need to address it now more pressing
than ever.

Renewable energy will form a key part of the solution and ramping up its
production and use will require the most significant energy transition in
history. Pensana sits right at the centre of this transition and exists to
meet this challenge.

Sourcing and processing rare earths and other critical minerals are
increasingly recognised as vital for decarbonisation, particularly as key
components for the magnets used in electric vehicles and wind turbines.

The importance of these critical minerals has long been understood by China,
which controls the majority of their sourcing and processing. However, there
has been enormous environmental damage during such production processes and,
going forward, China itself will have huge demands on rare earth resources for
its own energy transition needs.

Consequently, security of supply and environmental concerns are now firmly on
the agenda for Western countries, with recognition that a new model is not
only desirable, but imperative.

Pensana is committed to being part of this new model. From the start the
company has sought to do things differently, operating with the highest
environmental, social and governance standards. Pensana understands that ESG
concerns are now rightly and increasingly important for governments,
regulators, investors and consumers, and the risks of poor ESG standards are
clear.

In line with this, ESG is embedded in every decision the company takes, at
every stage of its operations. Whether protecting and enhancing the
environment, assessing emissions, using renewable energy to produce the lowest
carbon product or fostering a circular economy, Pensana is acutely focused on
doing the right thing.

Pensana also knows that it has not reached the end goal and is always looking
to improve. This is why the company uses independent experts to evaluate the
business, in line with leading international standards, allowing it to review
and enhance its ESG systems and processes.

The purpose of this ESG blueprint is to demonstrate Pensana's transparency so
that stakeholders can see for themselves that the Company puts the highest of
ESG standards at the heart of its operations. I am proud of Pensana's
commitment to ESG and that it is at the forefront in this field.

 

The Right Honourable Baroness Lindsay Northover

Independent Non-Executive Director

 

- 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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