London-listed rare earths miner Pensana has signed a nonbinding memorandum of understanding (MoU) with Japanese trading group Hanwa for the offtake up to 20 000 t/y of mixed rare earth carbonate (MREC).
Pensana holds 84% of the Longonjo neodymium/praseodymium project in Angola. The project is expected to produce 20 000 t/y of MREC initially in 2026 and ramp up to 40 000 t/y by 2029 following planned expansions.
Hanwa and Pensana will cooperate on marketing and distribution for the MREC globally, as well as to develop a strategic and sustainable supply chain for magnet metal materials.
Hanwa is considering a deeper cooperation with Pensana including an investment in both upstream and downstream projects with the aim of delivering low embedded carbon magnet metal materials to Hanwa’s customers and future partners.
Hanwa will also consider providing financial support and to jointly study support opportunities from governmental and financial institutions for the various projects that Pensana is pursuing.
These include Coola and the Sulima West expansion, which relates to a separation and metallisation project.
“We see this MoU as the path to finalising a long-term agreement with Pensana, ensuring high-quality magnet metal products with leading environment, social and governance benefits to Hanwa’s global customers,” Hanwa comments.