REG-Pensana Plc: Offtake and Co-operation Agreement with Hanwa

PensanaAnnouncement

09/09/2024 07:15

THIS ANNOUNCEMENT CONTAINS INSIDER INFORMATION

 

Pensana Plc

("Pensana" or the "Company")

Offtake and Co-operation Agreement with Hanwa

 

Pensana Plc (PRE.LSE) is pleased to advise that it has signed a non-binding
Memorandum of Understanding (“MOU”) for an offtake with a major Japanese
partner, Hanwa Co. Ltd (“Hanwa”).

 

Key MOU terms include: 

 
* Offtake proposal for up to 20,000tpa of ultra clean Mixed Rare Earth
Carbonate from Longonjo mine over 5 years at prices to be discussed. 
* Hanwa intends to co-operate with Pensana in the marketing and distribution
in the Global market but also work towards developing a strategic and
sustainable supply chain for magnet metal material.
* Hanwa is considering a deeper co-operation including possibility of an
investment to continue to develop the Pensana upstream and downstream projects
with the aim of delivering a low embedded carbon magnet metal supply chain
supporting Hanwa’s customers and future partners.
 

The MOU also allows for Hanwa to consider providing financial support and to
jointly study support opportunities from Governmental and financial
institutions for the various Pensana projects. These include Coola and Sulima
west expansion, the separation facilities and metallization project. 

 

Hanwa commented - “We see this MOU as the path to finalisation of a
long-term agreement between Pensana and Hanwa, ensuring high quality magnet
metal products with leading ESG benefits are available to Hanwa’s Global
customers.”

 

Paul Atherley, Pensana Chairman commented - “We are delighted to be working
with Hanwa with a view to establishing a long term and sustainable supply of
high-quality magnet metal products from our Longonjo operations in Angola.”

 

About Hanwa

 

Hanwa Co., Ltd is a Japan-based trading company, handling a diverse range of
commodities including steel products, non-ferrous metals, foods, petroleum and
chemical products, lumbers, machinery and now intensively focusing on key
feedstock (metals and chemicals) for the electric vehicle and FCV with a
market capitalisation of ¥215.9 billion (circa US$1.5 billion) and reported
net sales of more than ¥2,400 billion (circa US$16.9 billion) in FY2023-2024.
Hanwa has an “A-“ credit rating.

 

Hanwa is aggressively acting amongst the largest commodity traders of metals
and chemicals specifically in the Asian region, and has a long history of
trading with global metal and chemical producers and operating a
specifically-dedicated primary metal and battery team. This team has been
intensively expanding its critically important minerals including not only
above key metals for battery cathodes but also graphite (natural & synthetic),
silicon and black mass for battery anodes, rare earth materials and recycling
products.

 

Hanwa will keep contributing to both social development and environmental
conservation by responding to increasing demand while expanding its supply
ability through partnerships with the resource suppliers and smelting/refining
companies, off-takes and investments.

 

About Longonjo

 

The electrification of motive power through EVs and Wind Turbines is the
biggest energy transition in history. Adamas Intelligence forecasts that the
global demand for rare-earth magnets will increase at a CAGR of 8.7% from 2024
to 2040.

 

Pensana owns one of the world's largest undeveloped rare earth mines, one of
only three with a JORC Reserve >100,000 tonnes of NdPr. Once in full
production the Longonjo project located in Angola near Huambo on the Lobito
Corridor 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 making Pensana
highly competitive.

 

Pensana has recently been awarded a Gold Medal by EcoVadis, a
leading sustainability ratings provider, placing it in the top 5% of the
companies assessed.

The ratings by EcoVadis are widely used by the automotive and offshore wind
OEMs to monitor the ESG credentials of potential suppliers and are based on a
detailed assessment of operations in the areas of environment, sustainability,
procurement, labour and human rights and ethics.

The award follows the award by S&P Bond Rating Agency CICERO in 2022 which
rated the Company’s operations as Light Green with Good Governance.

Pensana will continue to operate under the EcoVadis tracking and reporting
system, as leadership in global sustainability is critical to its long-term
growth strategy.

Pensana’s Blueprint for Sustainable Rare Earths, demonstrating our strategic
commitment to ESG, can be found here
(https://pensana.us11.list-manage.com/track/click?u=74510681a1bb7db89c47fee65&id=a641020a77&e=badae3e7b5).
 

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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