ANDRIEVSKII.CH | Pensana (PRE.L): Discovery of Heavy Rare Earth Elements Strengthens Longonjo Project Potential
Angola's Minister of Mineral Resources, Petroleum and Gas, Diamantino Azevedo, visited the Ozango Mineiras project in Longonjo on September 3, where the company announced the identification of dysprosium (Dy) and terbium (Tb), in addition to the previously confirmed neodymium (Nd) and praseodymium (Pr).
New Discovery Enhances Project Value
Ozango, a project owned by UK-listed Pensana Plc (LSE: PRE), has reported the identification of the heavy rare earth elements dysprosium (Dy) and terbium (Tb) at its Longonjo deposit in Angola. The discovery expands the project's resource base, which had previously been recognized primarily for neodymium (Nd) and praseodymium (Pr)—the key magnetic rare earth elements used in permanent magnets for electric vehicles, wind turbines, and defense applications.
The addition of dysprosium and terbium has the potential to significantly enhance the project's economics, as these heavy rare earth elements are among the scarcest components used in high-performance permanent magnets and command a substantial premium over light rare earths. Pensana is also optimizing its processing flowsheet to recover heavy rare earths, positioning Longonjo to become one of the leading Western sources of dysprosium and terbium.
Construction Progress Remains on Track
During the site visit, the minister was informed that construction of the Longonjo project is approximately 25% complete. Work is continuing on the tailings storage facility, while detailed engineering of the processing plant is nearing completion.
Ozango Mineiras CEO Alcídio José said the operation is being developed using a modular approach, allowing production capacity to be expanded in line with future demand. Despite delays related to project financing, the company expects commissioning to begin in October 2027, with full commercial production targeted for 2028.
The first development phase is designed to process approximately 850,000 tonnes of run-of-mine (ROM) ore per year, producing around 20,000 tonnes of Mixed Rare Earth Carbonate (MREC) annually. The Angolan government is also evaluating the construction of a dedicated railway connection to improve logistics and support future exports.
A Strategic Asset for the Western Magnet Supply Chain
Longonjo is one of the world's largest and highest-grade magnet metal rare earth deposits. Proven reserves total 21.54 million tonnes of ore at an average grade of 3.04% TREO, supporting an open-pit mine life of more than 20 years.
The project forms the cornerstone of Pensana's mine-to-magnet strategy, which aims to establish an integrated Western supply chain independent of China—from rare earth mining through to magnet material production. Pensana is already developing partnerships with magnet manufacturers and automotive companies in the United States, Europe, and Japan to support this strategy.
Alongside construction, the company continues to implement community development initiatives. Compensation has already been paid to approximately 150 local farmers, the workforce has grown to 98 employees, and a further 38 positions are expected to be filled by year-end.
Andrievskii Verdict
The key takeaway is not simply the discovery of two additional rare earth elements, but the transformation of Longonjo's investment profile. Until now, the market has largely viewed Pensana as a developer of a major NdPr project. Confirmation of dysprosium and terbium strengthens the project's diversification and potential profitability, as heavy rare earth elements remain among the most strategically valuable and supply-constrained components of the permanent magnet market.
Equally important is the political backing demonstrated during the minister's visit. Confirmation that construction is 25% complete, discussions surrounding new railway infrastructure, and the continued involvement of the Angolan government all point to strong institutional support for the project. For a capital-intensive mining development, this materially reduces infrastructure and execution risk.
If Pensana successfully demonstrates commercial recovery of dysprosium and terbium while maintaining its current construction schedule, Longonjo could evolve beyond a conventional NdPr project into one of the West's most strategically important sources of magnet rare earth metals. As the United States and Europe accelerate efforts to reduce dependence on Chinese supply chains, this development—rather than simply an increase in mineral resources—could become the primary catalyst for a long-term re-rating of Pensana (PRE.L).
Aleksei Andrievskii | Advisory Board Member, Bendura Bank AG | Liechtenstein