Mining company Pensana has entered into an agreement with China Great Wall Industry Corporation (CGWIC) for the financing, engineering, procurement and construction works for the Longonjo project in Angola.
“CGWIC brings to Longonjo a successful track record in major project development in Angola with funding from China”, Pensana says in a statement released today.
The agreement with the Chinese major State Owned Enterprise contemplates 85% debt finance with a term of 8-10 years from commercial banks in China with credit insurance from SINOSURE.
“Angola is an important market for CGWIC where it cooperates with government enterprises in the areas of aerospace, telecommunications and major engineering and construction projects”, Pensana adds.
Pensana Chairman Paul Atherley said that with “Angolan Presidential approval and backing from the Angolan Sovereign Wealth Fund, Pensana is rapidly developing Longonjo as the first major rare earths mine to be brought online in over a decade to help meet the rapidly growing demand for magnet metals critical for electric vehicles and offshore wind turbines and a range of other applications important for the transition towards a green economy”.
“CGWIC brings to the project a successful track record in major project development in Angola with funding from China. We are very much looking forward to working harmoniously with CGWIC and achieving important outcomes for Angola, CGWIC and Pensana’s shareholders”, Atherley stated.
The Angolan Sovereign Wealth Fund, FSDEA, has invested a further A$7.25 million (USD 5 million) in Pensana Rare Earths, which is engaged in the country´s major rare earths mining project, in Longojo. The funds will advance the company’s flagship Longonjo Project to “Bankable Feasibility Status” later this year.
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