The Angolan Sovereign Wealth Fund and UK asset manager M&G Investment Management are jointly backing the mineral exploration company Pensana in the construction of a US$305 million rare earth mine at Longonjo, some 275 km inland from the port of Benguela.
Pensana will also build a US$195 million refining plant in the English city of Hull to receive ore from the mine, according to a report in mining.com.
The neodymium-praseodymium extracted from the rare earth mine will be sold to Volvo-controlled automaker Polestar for use in magnets for electric vehicle motors, the report says, estimating the life of the mine at around 20 years.
[See more: Massive railway project helps to put Angola’s economic recovery on track]
Although Angola’s oil exports to Europe are surging, the nation is keen to reduce its economic reliance on fossil fuel.
In a boon for the mining sector, the government recently announced the construction of a 260-kilometre section of railway to boost the volume of goods and passengers transported between Moxico, in the interior of Angola, and coastal Benguela.
According to some forecasts, Angola’s real GDP growth will exceed five percent in 2027, with inflation reined in by currency stability and tighter monetary policy.
