Amid global interest in Rare Earths following President Trump’s desire to decentralise supply from China which dominates the market, Pensana Rare Earths (ASX: PM8) is preparing to establish a processing facility that would be the world’s first sustainable magnet metal supply chain.
Specifically, a new UK facility would integrate Pensana’s Longonjo project in Angola which was recently upgraded to one of the world’s largest known rare earth resources, which is estimated to contain 4.47 million tonnes of rare earth oxides including 990k tonnes of NdPr (neodymium+praseodymium oxide) – the crucial elements needed for battery magnets used in electric vehicles.
“We all want a green economy and to ‘build back better’, however this burgeoning demand for magnet metals brings into focus the provenance and sustainability of these critical supply chains,” said Pensana Chairman, Paul Atherley.
“The UK and the EU lead the world in the Offshore Wind and EV industries, both of which are dependent on permanent magnets. Both have recognized that the green recovery requires critical raw materials and that a sustainable magnet metal supply chain is needed to support the green economy.”
To advance the possibility of a rare earths production facility further, Pensana has appointed Wood Group to undertake the study. The facility would be located in the UK where the Company is confident that their supply from Longonjo could produce enough rare earth oxide to supply the wind turbines at Dogger Bank, off the Yorkshire Coast for the next 20 years. The location is projected to be the world’s biggest wind farm, generating 5% of the UK’s total electricity.
The rare earths sector has attracted global attention across the resources industry since the beginning of October when President Donald Trump signed an executive order declaring a national emergency in the mining industry, aimed at boosting domestic production of rare earth minerals to reduce the US’s dependence on China.
Pensana’s study is currently expected to take approximately three months to complete.
Alfred Chan is an Analyst at Emerald Financial, specialising in ASX-listed small cap companies.
Latest posts by Alfred Chan (see all)
- Aussies taking charge of credit debt as Wisr tipping 300,000 customers - October 20, 2020
- AI now monitoring prison breaks as icetana lands more motion sensor sales - October 19, 2020
- Strategic Elements enters agriculture tech with 3D weed mapping device - October 19, 2020
Leave a Comment
You must be logged in to post a comment.