The Africa Finance Corporation has approved its US$80 million participation in an US$160 million syndicated loan facility alongside major South African Absa Bank Limited.
The balance of funding will be provided through equity at the subsidiary level, with the Angolan Sovereign Wealth Fund having approved an investment of US$38 million in the form of equity and convertible loan and the AFC having approved an investment of US$55 million in the form of a convertible loan. These investments are in addition to the US$15 million bridging loan already provided by FSDEA.
The loan, equity and convertible loan investments will all be at subsidiary level and are subject to the conclusion of definitive documentation and the fulfilment of conditions precedent contained therein.
FSDEA Chairman, Armando Manuel, commented: “The Longonjo Mining Project holds strategic significance for the Angolan Sovereign Wealth Fund (“FSDEA”) as part of its commitment to advancing the national mining sector. Beyond its substantial economic impact—such as job creation and tax revenues—the project plays a crucial role in establishing in Angola a key segment of the value chain for an industry essential to the global energy transition.
As a key investor, FSDEA has been instrumental in demonstrating the untapped potential of Angola’s mining sector, which remains a critical driver of economic diversification. With the support of ABSA and AFC, this initiative represents a concerted effort to foster sustainable growth, enhance local capabilities, and reinforce Angola’s position in the international mining landscape”.
President & CEO of Africa Finance Corporation, Samaila Zubairu, commented: “With approximately one-third of the world’s rare earth mineral reserves, Africa is poised to become a cornerstone of the global clean energy revolution. These minerals are essential for high-tech industries, from semiconductors to advanced batteries and renewable energy solutions. At AFC, we recognize the immense strategic value of Africa’s resources—not just for our economic transformation but for securing diversified, sustainable supply chains for the future. Our partnership with Pensana and FSDEA on the Longonjo project reflects our unwavering commitment to unlocking Africa’s mineral potential through local value addition, industrial growth, and responsible mining. By investing in Africa’s rare earth sector, we are not only accelerating regional development but also strengthening global energy security in line with the aspirations of the Mineral Security Partnership.”
Pensana Chairman, Paul Atherley, commented: “We are extremely grateful for the work undertaken by the AFC and FSDEA teams in providing the Longonjo project with the funding requirements for the Longonjo project.
The Longonjo project will produce an average of around 20,000 tonnes per annum of clean high value MREC and will have a major positive impact on the community, creating over 430 high value processing jobs. Over 50% of the jobs created are expected to be allocated to young people as well as supporting local businesses, service providers and farmers.
Once in full second phase production, the project will create an estimated 2,400 direct and indirect jobs and will produce around 5% of the world’s magnet metal rare earths used for diverse applications including wind turbines and electric vehicles.”
Pensana has spent over US$70 million over the past six years on exploration, technical and environmental studies on the Longonjo rare earth project in the Huambo district of Angola approximately 350 kilometres Southeast of the capital Luanda.
The Company has successfully delineated a near surface JORC compliant reserve of 30 million tonnes grading 2.55% TREO containing 166,000 tonnes of NdPrO has been delineated making it one of the world’s largest undeveloped magnet metal rare earth deposits with a mine life of over 20 years.
