Rare earth developer Pensana signs offtake MOU for 25% of its annual production
(Kitco News) - Rare earth metals developer Pensana (LSE: PRE) announced today it has entered into a strategic relationship with a major non-Chinese industry player to supply rare earth oxides from the Saltend processing hub.
According to the company’s statement, it has signed a memorandum of understanding for offtake of 25% of annual production to supply critical raw materials for production of magnet materials needed to support the burgeoning demand for electric vehicles and offshore wind.
Pensana added it recently broke ground at the Saltend Chemical Park in the Humber Freeport UK with high-value raw materials supplied from the hydroelectric-powered state-of-the-art mine at Longonjo in Angola.
Chairman Paul Atherley commented, "This agreement represents a significant step forward in our goal of providing an independent and sustainable supply of rare earth magnets for the electric vehicle and offshore wind industries. It is also an important step in finalising the financing for the project.
"We look forward to closely working with our partners and hope to expand our relationship as our project progresses with the introduction of metal conversion and heavy rare earth separation at our Saltend facility powered by offshore wind, offering ultra-low embedded carbon products essential for the energy transition."
Pensana also noted it plans to establish Saltend as an independent, sustainable supplier of the key 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 oxides, of which 4,500 tonnes will be neodymium and praseodymium (NdPr), representing over 5% of the world market in 2025.
The company added that feedstock will be shipped as a clean, high purity mixed rare earth sulphate from the company's Longonjo rare earth mine in Angola. 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.
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