Pensana Rare Earths Plc (ASX: PM8) has received “Presidential” approval for the exploitation of the Longonjo Rare Earths Project in Angola.
President Lourenço has approved the company’s subsidiary Ozango Minerals S.A. Mining Title, renewable up to 35-years, for the mining of rare earths at the Longonjo project located near Huambo.
Pensana CEO Tim George said the granting of the Mining Title is a major milestone in the rapid development of the Longonjo project.
“The support of the Ministry in expediting the contract is very much acknowledged and is testament to Angola being ‘open for business’ – even during the Covid-19 lockdown,” Mr George said.
“The recent investment in the company by Angola’s Sovereign Wealth Fund underscores the commitment towards the project which will bring major social and economic benefits to Angola and will help accelerate the diversification of the economy away from the oil and gas and diamonds sectors.
“We are excited about developing a mine which will not only create major social and economic benefits – and is being developed to the highest ESG standards – but one which will become a major global supplier of the magnet metals critical to our clean energy future.”
The key fiscal terms under the Mining Investment Contract are:
- 2% royalty on revenue;
- 20% national tax and 5% municipal tax on revenue following an initial two-year tax holiday;
- Custom duties exemption on imported equipment;
- Full 5 year capital repayment allowance;
- Dividend tax exemption for 3 years.
Angolan Minister of Mineral Resources and Oil and Gas, Diamantino Azevedo, said the Pensana’s investment will be one of the largest investments in regional Angola in recent years and will create jobs, provide training, support local businesses as well as improving the social infrastructure within the Huambo region.
“We look forward to working closely with Pensana in advancing the project over the coming months.”
The exclusive mining rights have been granted over a 21 sq. km area, adjacent to the town of Longonjo in central Angola, which is well served by established transport and energy infrastructure.”
The designated project area encompasses the Longonjo carbonatite deposit, proposed open pit mine, processing plant, tailings storage facility and all associated infrastructure required for the mining operations.