Underwriting agreement signed for Angola's Lungunjo rare earth mine

London-listed rare earths miner Pensana has signed a non-binding memorandum of understanding with Japanese trading group Hanwa to 

underwrite up to 20,000 tonnes of Mixed Rare Earth Carbonate (MREC) per year, according to MiningWeekly.

Pensana has an 84 percent stake in the Longonjo praseodymium project in Angola, which will initially produce 20,000 tonnes of MREC

 products per year in 2026, rising to 40,000 tonnes per year in 2029 after expansion.

Hanwa and Pensana will collaborate on global MREC marketing and distribution, as well as building a strategic and sustainable supply

 chain for magnet metal materials.

 HANWA is also considering deeper cooperation with Pensana, including simultaneous investment in upstream and downstream projects, 

with the aim of supplying low-carbon magnetic metal materials to its customers and future partners.

In addition, Sakazu is also considering providing financial assistance to co-operate in researching support from government and financial

 institutions to develop various projects in Pensana.

These include the Coola and Sulima West extensions, which involve a separation and metals refining project.

‘We see this MOU as a way to enter into a long-term agreement with Pensana to ensure the supply of high-quality magnet metal products 

to our global customers to stringent ESG standards,’ Sakazu said.