REG-Pensana Plc: Construction on track for 2027 first production

PensanaAnnouncement

03/03/2026 07:02

 

 

 

03 March 2026

THIS                                                              ANNOUNCEMENT
                                                             CONTAINS         
                                                    INSIDE                    
                                         INFORMATION

 

Pensana Plc ("Pensana"                                                        
     or                                                              the      
                                                       "Company")

 

Construction on track for 2027 first production

 

Pensana (PRE.LSE) is pleased to advise that the main construction activities
at the Longonjo Rare Earth Project ("the Project"), one of the world's largest
and highest-grade rare earth mines, continue at pace and that the project is
looking forward to a twelve-month period of intense activity with
commissioning scheduled for 2027.

Initial annual production will be 2,400 tonnes of light magnet metals NdPr
accompanied by 73 tonnes heavy magnet metals DyTb in the form of clean high
value mixed rare earth carbonate with plans to double production to 4,200
tonnes NdPr and 122 tonnes DyTb post 2030.

Current resources are over 300 million tonnes and as previously announced an
11,000 metre drill programme has been planned which is designed to increase
resources towards one billion tonnes, which would make Longonjo one of the
world's largest rare earth deposits ever developed.

The Project will be powered by low cost sustainable hydro-electricity supplied
from the Luaca dam hydro project. The Project is connected to the Port of
Lobito via the U.S. Government backed Lobito corridor rail and services which
are connecting Ivanhoe's recently commissioned Kamoa-Kakula copper smelter in
the DRC to the Atlantic seaboard.

Discussions are well advanced with a number of parties to establish a U.S.
mine-to-magnet supply chain realigning a major long term supply chain of
critical minerals from Angola to OEM backed magnet producers in the U.S.

Highlights:

 
*                        The main pre-construction facilities have been
installed and are operational, including the camp and accommodation,
construction and site power and water treatment facilities;                   
 
*                        The process plant terrace and contractor's laydown
areas have been completed with preparations for piling operations well
advanced;                     
*                        Bulk earthworks and starter walls for the tailings
storage facility are underway following completion of site clearing;          
          
*                        The aggregate and concrete batching plants are being
commissioned for the first large concrete pours scheduled for March;          
          
*                        Major equipment vendor packages are progressing on
schedule.
 

CEO, Tim George, commented:

 

                                            "We are delighted with the       
                                   progress                                   
        by the engineering team to bring this world class project through
design, engineering and pre-construction and up to the commencement of main
construction. Huge thanks to Project Manager Kevin Botha and his team for
their considerable efforts to date as we look forward to a period of intense
construction activity over the next twelve months.

Pre-construction activities completed

 

Final compaction of the 44,000m          2           laydown area was
completed creating capacity for the concreate batch plant, contractor
facilities and equipment storage ahead of installation on the plant terrace.

 

Design of the plant terrace and internal road network by RMCE has been
finalized, with the road infrastructure programme schedule for implementation
by Grupo Nov during Q2 2026. RMCE will continue to oversee plant terrace
design and associated civil and structural works under the supervision of the
owner's team.

 

The power infrastructure and reticulation, connecting the site to the Longonjo
grid connection, has been energised and will meet all construction power
demands for the next 18 months.

 

Underground sleeves have been installed across the main road, with excavation
for cabling connections to contractor laydown area distribution pillar boxes
underway.

 

The wastewater treatment plant is now fully operational alongside completion
of the pipeline for the containment and management of excess treated water.

 

Main construction progress

 

Bulk excavations for the Tailings Storage Facility (TSF) are underway, led by
Grupo Nov, and will remain a critical path priority over the next twelve
months as the Company advances toward first production.

 

Topsoil stripping has been successfully completed, and excavation of the box
cut for the initial 12.8-hectare TSF compartment - a key component supporting
the plant commissioning programme - is progressing well and is scheduled to
continue over the next four months.

 

Material excavated from the box cut has undergone compaction testing by SRK
and has been confirmed as suitable for construction of the 14-hectare TSF
starter wall, supporting both the first and second TSF compartments. This
outcome provides a positive cost and schedule advantage through the
utilisation of on-site materials.

 

SRK has also completed the full scope of geotechnical investigations,
including localised test pits and core drilling, with the detailed engineering
design for sub-liner drainage systems, return water dams, pollution control
infrastructure and long-term TSF closure considerations now approaching
completion.

 

Bulk earthworks have been the principle focus during Q1 2026. Successful
compaction of the 68,000m          2           plant terrace area has been
independently verified by SRK undertaking DPSH/DCP testing across the entire
area, mapping load bearing characteristics in detail to inform final civil
design and piling requirements for individual major equipment installation.

 

In preparation for piling and broader civils, the on-site 60m3/hr batch plant
currently being commissioned alongside the 60 t/hr jaw and cone crusher
aggregate plant located at the granite quarry 3km from site. The product has
been graded suitable for the various aggregate specifications. Sizing of the
batch and aggregate plant is based on adequate delivery for the various
continuous concrete pours and some 3,000 sleepers required as support for the
modular pipe and cable rack units during the construction period.

 

           Steel piling material supplied by TRM in Sweden for the hammered
piling is                      en route                     to site with
installation of the initial batch of 500 x 170mm diameter piles scheduled to
commence in late March 2026. Priority is given to the 197 piles required for
the ball mill which is fully fabricated and currently awaiting road transport
to site from Johannesburg under the overall Project logistics contract
services provided by DHL. The piling program, totaling 2250 piles to
resistance at approximately 15m depth, is scheduled to be completed by
September 2026.

 

On schedule for 2027 commissioning

 

Off-site engineering works in progress include:

 
*            Lycopodium & ProProcess (Engineering Service Providers) plus
various vendor package suppliers continue with detailed design and engineering
under supervision of the Owner's team with all packages on schedule;          
*            The front end and blending stockpile area detailed design and
engineering has been completed by Crush & Screen in Perth;          
*            The comminution circuit, which includes pumping to the Barite
pre-flotation section, is currently under detailed design in Manilla and is
progressing;          
*            The Ball Mill refurbishment by NCP has been completed and the
equipment is currently in storage at DHL in Johannesburg awaiting dispatch to
site;          
*            The Scrubber package has been awarded to Cobar (South Africa) and
detailed design is progressing;          
*            The Flash Dryer and Acid Mixer package awarded to Ingetecsa
(Spain) is in detailed design with manufacture scheduled to commence in March
2026;          
*            Completion of nano-filtration testwork by BMS/Memcon (South
Africa) to validate detail design parameters has been completed and the
detailed design commenced;          
*            The Caustic Dissolution Plant package has been awarded to
ProProcess Engineering and detailed design has commenced;          
*            The Off Gas Scrubbing package has been awarded to TAPC
(Australia) and detailed design is progressing          
*            International Quality Services (IQS) continue quality checks
under Owner's Team supervision on local and global vendors including the
250tpd Acid Plant by Clark Solutions (Brazil);          
*            The Kiln & Cooler detailed design and manufacture by Drytec are
progressing satisfactorily;          
*            Detailed design and 3D modelling of the Eriez flotation columns
is progressing; and          
*            The Filter Presses & Thickeners detailed designed and
manufactured by Roytec (South Africa) are progressing.
 

            Ongoing community and camp related activities include:

 
*            The Resettlement Action Plan (RAP);          
*            The Livelihood Restoration Program (LRP) supported by the
demonstration plots under cultivation;          
*            The Transitional Support Programme for Project Affected
Households (PAH);          
*            Training of local residents in accommodation and messing related
activities in the camp; and          
*            Training of local residents in minor maintenance works associated
with the camp and other project related activities.
 

Strong demand for product and rare earth prices boasting economics

Since Q4 2025, the quoted Neodymium/Praseodymium Oxide price (CIF North
America) has increased materially, rising from approximately US$83/kg in
November 2025 to over US$135/kg in February 2026.

 

This strengthening price environment reflects sustained growth in demand for
secure, independent western-facing supply of rare earth materials and
reinforces the strategic importance of delivering first production in 2027 as
scheduled. The improving pricing backdrop has a direct and favourable impact
on projected project economics.

 

Against a backdrop of tightening supply chains, the company is experiencing
increasing market interest in expanding beyond the planned 2,400 tonnes per
annum of NdPr production and further leveraging the scale of the Longonjo
resource base.

 

In particular, engagement with US-based magnet producers has intensified
around heavy rare earth supply. This has led to the identification of an
enhanced heavy rare earth recovery stream with the potential to increase
dysprosium and terbium output up to fivefold as announced in November 2025.

 

At full scale, this would position Pensana as one of the significant producers
of heavy rare earths in the western market. The technical team continues to
assess additional recovery pathways to further optimise output. This increased
recovery results in an additional US$155 million revenue over and above prior
base case at phase 2 production. This is based on the current market for these
materials at US$1,125/kg for Dysprosium and US$4,500/kg for Terbium*.

 

The combination of increased heavy rare earth production potential and the
substantial scale of the Longonjo orebody, positions Pensana at the centre of
the emerging US-focused rare earth supply chain.

 

Following the partnerships signed in June 2025 with ReElement Technologies,
Hanwa and Toyota Tsusho, and the cooperation agreement executed in October
2025 with VACUUMSCHMELZE, the Company continues to receive interest from
additional magnet producers, including Vulcan Elements, which has partnered
directly with the U.S. Department of Defense.

 

Importantly, demand signals are increasingly originating downstream from OEM
sectors spanning defence, automotive, aerospace and hyperscale data
infrastructure, including companies such as Amazon and Microsoft. This
structural pull from end users underscores the strategic relevance of
establishing large-scale, secure and transparent rare earth supply chains
aligned to western industrial policy priorities.

 

*                      According to                                          
                    Benchmark                                                
              Mineral Intelligence's pricing assessment published on
19/02/2026, dysprosium oxide (CIF Europe) and terbium oxide (CIF Europe)      
                                                         Benchmark           
                                                   notes these levels are
higher than prevailing Chinese domestic prices over the same period,
reflecting the strategic importance and limited availability of these
materials in non-Chinese supply chains. These prices are indicative and
reflect                                                              
Benchmark's assessment as at 19/01/2026

 

About Pensana

Pensana is developing one of the world's largest and highest-grade magnet
metal rare earth deposits which will produce initially 20,000 tpa of a clean
high value MREC including both LREE and HREE. The plan is to expand production
to 40,000 tpa of MREC once initial operations have been established.

The Longonjo operation will extract, concentrate, calcine and chemically
refine the free dig material to produce a high-value MREC which will be railed
273km in containers to the Atlantic port of Lobito for export.

The Longonjo rare earths deposit is located adjacent to the Lobito rail
corridor approximately 60 km west of the provincial capital of Huambo in
central Angola.

The project currently under development comprises an open pit, concentrator
and recovery plants, tailings storage facility (designed to meet the
requirements of the Global Industry Standard on Tailings Management), process
water supply, bulk power supply, mine infrastructure, workshops, offices,
accommodation village, recreational facilities, and other associated
infrastructure.

About the Lobito Corridor

The 1,300 kilometre Lobito Corridor rail and services corridor connects
mineral and energy developments in Angola, the DRC and Zambia to the Atlantic
Port of Lobito. Ivanhoe Mines recently commissioned Kamoa-Kakula copper
smelter in the DRC                      and is a user of the line.

The rail concession, operated by Trafigura, Moto-Engil and Vecturis, is
supported by the U.S. Governments through a US$553 million DFC backed
financing and the European Union though financial and other commitments.

The Lobito corridor is seen as an important Atlantic access to the Copper belt
and other critical mineral developments at a time when China is investing
US$1.4 billion into the 1,860 TAZARA railway connecting Zambia to the East
coast Ports of Africa.
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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