Modern Mining December 2019

Angola as Chairman and CEO of Xceldiam, an AIM- listed diamond exploration company based in Angola which was bought out by Petra Diamonds in 2007. In its latest update on Longonjo, Pensana says that the four containers despatched to Perth in Australia contain 60 tonnes of high-grade weathered miner- alisation mined from 23 locations across the initial mining area. The pilot plant testwork programme will produce approximately 2 tonnes of concentrate for delivery to customers ahead of offtake negotiations and will provide detailed parameters for the flotation circuit final design. Pensana also reports it has engaged with a num- ber of well-established mining financial institutions for the provision of a mezzanine finance facility to take the project from PFS through DFS to the main financ- ing by the middle of next year (2020). In addition, the company has engaged in similar discussions with a number of financiers who have expressed interest in the main financing. These discussions are based on the completion of the DFS, the project being fully per- mitted and with offtake agreements in place. Pensana has also commenced discussions with UK Export Finance which last year provided €450 million in export finance guarantees to UK companies investing in Angola and also with lend- ers who are actively lending to the oil and gas sector in Angola. Whilst all the main commodity analysts are fore- casting strongly rising demand for NdPr, Pensana emphasises it is not reliant on these outcomes as the project has a relatively low up-front capital cost, low operating costs and is strongly cashflow positive at the current (early December 2019) spot prices of neodymium oxide of US$41 000 per tonne and pra- seodymium oxide of US$48 000 per tonne. Photos courtesy of Pensana Metals

flotation to produce a rare earth concentrate; and  product dewatering – thickening and filtration of rare earth concentrate to a moisture content of 12 to 15 % by weight. Pensana says it is designing into the project the highest standards of Environmental, Social and Governance (ESG) compliance from the outset. The main frameworks which have been used are the Equator Principles, the very highest environmental standards and Scope 1, 2 and 3 emissions under the Green House Gas Protocol (GHGP). Access to low carbon power from the Luaca hydro-electric dam via the national grid and local PV and storage facilities at the mine site and the use of rail rather than road transport for the concentrates will give the mine a low carbon footprint. The operation will use a closed circuit zero dis- charge process water circuit and a tailings storage facility designed to store benign tailings during operations which will be rehabilitated at the end of the mine life. Pensana is currently listed on the ASX but is plan- ning to list also on the LSE. Its biggest shareholder is Fidelity UK with a 9,9 % stake. The management team has extensive African experience and a strong project delivery track record. The Chairman is Paul Atherley while the CEO is Tim George and the COO David Hammond. George was appointed in April 2019 to drive the project into implementation. He holds an hon- ours degree in Minerals Engineering from Leeds University and his past career includes over a decade in production management at several Anglo American operations in Africa and involvement in plant design and feasibility studies in various base and precious metal projects. He is based in Cape Town and has previous experience working in

Drone shot showing the town of Longonjo with the Benguela railway line in the foreground (taken when the bulk samples were recently being loaded into the containers on the wagons visible at Longonjo station). Mount Chimbilundu, the carbonatite diatreme which hosts the Longonjo deposit, can be seen in the background.

December 2019  MODERN MINING  23