Pensana Plc - Announcement of Business Plan
Establishing a World-Class Sustainable Supply
of critical Rare Earths for the Green economy
-- Plans to establish the world’s first sustainable rare earth separation facility at the “plug and play”
Saltend Chemicals Park(“SCP”) in Humber, UK, and with a target production of circa 12,500 annualised tonnes of rare earth oxides, including 4,500 tonnes of magnet metal rare earth oxides (“NdPr”), which would represent approximately 5% of 2025 projected world demand.
-- Plans to establish the Saltend rare earth separation facility (“Saltend”) as the world’s first major separation facility established in over a decade and which would be one of only three major producers located outside
China. The planned US$125 millionfacility would create over 100 direct jobs processing purified rare earth sulphates, which would be imported from the Company’s state-of-the-art Longonjo mine in Angola.
-- Benefitting from the recently awarded Humber Freeport status, Saltend has the potential to bring high value manufacturing jobs back to the
UKand, through Pensana’s plans, could become one of the world’s largest rare earth processing hubs, importing sustainably, globally sourced feedstock and processing it into valuable oxide and metal products for consumption by European OEMs and beyond.
“Saltend has the potential to become the first major separation facility to be established in over a decade – one of only three major producers outside
Saltend will initially seek to source high purity feedstock from the Company’s Longonjo mine and will look to take advantage of the recently granted Humber Freeport status to create a high value processing hub in the
The global rare earth market, driven by demand from industries including electric vehicles and offshore wind, is expected to increase five-fold by 2030 and the NdPr oxide price is forecast to increase at a CAGR of 4.8 - 9.9%, underpinning strong economics for the investment.
With approvals in place for both Saltend and Longonjo, we are looking to commence the development of both projects later this year.”
Annual Production of Rare Earth Oxides C. 12,500 tpa (REO) Annual Production NdPr Oxides C. 4,500 (included in REO) Opex
US$ 22/kg rare earth oxide Capex Saltend Refinery US$ 125MLongonjo Mine and Infrastructure US$ 38MLongonjo Concentrator US$ 105MLongonjo MRES Refinery US$ 124MGrowth Allowance and Contingency US$ 31MRevenue (Average steady state) US$ 550 million(average per annum based on first five years) EBITDA (Average steady state) US$ 359 million(average per annum based on first five years) NPV8 ** (un-leveraged , post-tax) US$ 2.3 billionIRR 57% Payback from first production 2.0 years
*Management estimates, inclusive of Angolan and
-- SRK: Mineral resource estimates -- Snowden: Mine plan schedule and pit optimisation -- Wood Group: Longonjo and Saltend technical engineering and design; capex and opex cost estimates; supervision of metallurgical testwork and pilot plant programs -- Paradigm Project Management: Longonjo site infrastructure and bulk services technical engineering, design and cost estimates -- HCV Africa: ESIA, EMP, RAP and hydrology -- Grupo Simples – Angolan ESIA -- Adamas Intelligence: Market forecasts
**NPV is calculated at an operational level (pre-financing) which is anticipated to be a blend of equity and long term debt financing. Revenue based on the Shanghai Metals Market spot price as at
Potential financial backing from major shareholder and a range of financial institutions
Saltend has received first phase progression from the
Pensana has received indications of potential financial backing which include its major shareholder, the
The Company has 204 million ordinary shares on issue with a standard listing on the Official List in the
The top 20 shareholders own over 70% of the register and include the
Building a world class management team
Recent appointments have strengthened the management team including Non-Executive Director
Pensana has recently received planning permission to establish a world-class processing facility at the
The “plug and play” facility, located within the Humber Industrial Cluster, will cost around
With a nameplate capacity of circa 12,500 tonnes per year of rare earth oxides – including 4,500 tonnes of magnet metal rare earth oxides – representing approximately 5% of 2025 projected world demand, under the Company’s plans, Pensana’s plant at Saltend would become the world’s first major separation facility established in over a decade and one of only three major producers outside
Europe’s industries central to the green economy are almost totally dependent on magnets supplied from
Under the recently announced
ERMA: Establishing sustainable rare earth production in
Pensana is a founding member of the
“Green and digital technologies currently depend on a number of scarce raw materials. We import lithium for electric cars, platinum to produce clean hydrogen, silicon metal for solar panels, 98 percent of the rare earth elements we need come from a single supplier -
“It is not sufficient to have the raw materials if we do not have the processing facilities in
Ethically Sourced Rare Earths from the state-of-the-art Longonjo mine in
The near surface, high-grade project is linked to the
Angolan President Lourenço recently commented to international media that he has high hopes for Longonjo as a flagship achievement of his mining reforms.
Recently awarded Humber Freeport status creates a financial and regulatory environment to enable Saltend to become one of the world’s largest rare earth processing hubs.
By importing sustainably sourced feedstock from around the world and processing it into high value oxides and metal products, Saltend will have the potential to export to supply chains in
The Company is in active discussions with third parties for the additional supply of sustainably sourced rare earth carbonates in addition to plans to process Longonjo feedstock material. Once in production, Pensana will look to expand production capacity when additional feedstock becomes available.
Establish a certified magnet metal supply chain for wind turbine, electric vehicle and other strategic original equipment manufacturers
Through teaming up with alloy makers and magnet manufacturers, the Company is looking to establish a 3,000 tonne per year metal facility at Saltend to supply European automotive and wind turbine original equipment manufacturers.
The ability to provide manufacturers with proof of provenance and independently verified lifecycle certification of raw materials will become increasingly important under the EU 2023 Carbon
Using Hydrogen to recycle wind turbine nacelles at Saltend and help create a Circular Economy for rare earth metals
To tackle this problem, Pensana is exploring the use of blue hydrogen generated by Equinor at
The Equinor-led Hydrogen 2 Humber (H2H Saltend) project plans to capture carbon and supply blue hydrogen as part of Zero Carbon Humber, a partnership to build the world’s first net zero industrial cluster.
Community and social engagements
As part of Pensana’s commitment to communities in which the Company operates, alongside its inclusion of outsourced services and agri-business within the development plan, the Company has commissioned a detailed study which involves helping to revive parts of Angola’s coffee industry with enhanced certification and a fairer distribution of profits to farmers, thereby promoting inclusive growth and reducing poverty.
Previously a major coffee exporter,
The Company has engaged international consultants and with officials in-country and the
Providing positive opportunities for talented young women to help build a sustainable economy
Metals and minerals are the building blocks of the green economy. Pensana believes that it is unacceptable to extract them unsustainably and that smart chemistry and energy transition are the keys to establishing a net zero circular economy.
Pensana is actively seeking bright and aspirational women with STEM backgrounds, particularly those who come from diverse and/or disadvantaged backgrounds and want to be part of creating solutions for a sustainable future.
In this regard, the Company is engaging with engineering centres of excellence, the
For further information:
Pensana PlcWebsite: www.pensana.co.uk Paul Atherley, Chairman / Tim George, CEO firstname.lastname@example.org
Forward Looking Statements
This Announcement may contain "forward-looking statements" with respect to certain of the Company's plans and its current goals and expectations relating to its future financial condition, performance, strategic initiatives, objectives and results. Forward-looking statements sometimes use words such as "aim", "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "believe", "seek", "may", "could", "outlook” or other words of similar meaning. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond the control of the Company. As a result, the actual future financial condition, performance and results of the Company may differ materially from the plans, goals and expectations set forth in any forward-looking statements. Any forward-looking statements made in this Announcement speak only as of the date they are made. These forward-looking statements reflect the Company's judgment at the date of this Announcement and are not intended to give any assurance as to future results and cautions that its actual results of operations and financial condition, and the development of the industry in which it operates, may differ materially from those made in or suggested by the forward-looking statements contained in this Announcement and/or information incorporated by reference into this Announcement. The information contained in this Announcement is subject to change without notice and except as required by applicable law or regulation the Company expressly disclaims any obligation or undertaking to publish any updates, supplements or revisions to any forward-looking statements contained in this Announcement to reflect any changes in the Company's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statements are based.