Pensana Plc - Offtake and Co-operation Agreement with Hanwa - Vox Markets
THIS ANNOUNCEMENT CONTAINS INSIDER INFORMATIONPensana Plc("Pensana" or the "Company")Offtake and Co-operation Agreement with HanwaPensana Plc (PRE.LSE) is pleased to advise that it has signed a non-bindingMemorandum of Understanding ("MOU") for an offtake with a major Japanesepartner, Hanwa Co. Ltd ("Hanwa").Key MOU terms include: · Offtake proposal for up to 20,000tpa of ultra clean Mixed Rare EarthCarbonate from Longonjo mine over 5 years at prices to be discussed. · Hanwa intends to co-operate with Pensana in the marketing and distributionin the Global market but also work towards developing a strategic andsustainable supply chain for magnet metal material. · Hanwa is considering a deeper co-operation including possibility of aninvestment to continue to develop the Pensana upstream and downstream projectswith the aim of delivering a low embedded carbon magnet metal supply chainsupporting Hanwa's customers and future partners.The MOU also allows for Hanwa to consider providing financial support and tojointly study support opportunities from Governmental and financial institutionsfor the various Pensana projects. These include Coola and Sulima west expansion,the separation facilities and metallization project.Hanwa commented-"We see this MOU as the path to finalisation of a long-termagreementbetween Pensana and Hanwa,ensuringhigh quality magnet metal productswith leading ESG benefits are available to Hanwa's Global customers."Paul Atherley,Pensana Chairman commented - "We are delighted to be working withHanwa with a view to establishing a long term and sustainable supply of high-quality magnet metal products from our Longonjo operations in Angola."About HanwaHanwa Co., Ltd is a Japan-based trading company, handling a diverse range ofcommodities including steel products, non-ferrous metals, foods, petroleum andchemical products, lumbers, machinery and now intensively focusing on keyfeedstock (metals and chemicals) for the electric vehicle and FCV with a marketcapitalisation of ¥215.9 billion (circa US$1.5 billion) and reported net salesof more than ¥2,400 billion (circa US$16.9 billion) in FY2023-2024. Hanwa has an"A-" credit rating.Hanwa is aggressively acting amongst the largest commodity traders of metals andchemicals specifically in the Asian region, and has a long history of tradingwith global metal and chemical producers and operating a specifically-dedicatedprimary metal and battery team. This team has been intensively expanding itscritically important minerals including not only above key metals for batterycathodes but also graphite (natural & synthetic), silicon and black mass forbattery anodes, rare earth materials and recycling products.Hanwa will keep contributing to both social development and environmentalconservation by responding to increasing demand while expanding its supplyability through partnerships with the resource suppliers and smelting/refiningcompanies, off-takes and investments.About LongonjoThe electrification of motive power through EVs and Wind Turbines is the biggestenergy transition in history. Adamas Intelligence forecasts that the globaldemand for rare-earth magnets will increase at a CAGR of 8.7% from 2024 to 2040.Pensana owns one of the world's largest undeveloped rare earth mines, one ofonly three with a JORC Reserve >100,000 tonnes of NdPr. Once in full productionthe Longonjo project located in Angola near Huambo on the Lobito Corridor willproduce ~5% of world production of NdPr in the form of an exported mixed rareearth carbonate.The upfront capital cost of US$217 million for the fully permitted mine andprocessing facilities is amongst the lowest amongst its peers making Pensanahighly competitive.Pensana has recently been awarded a Gold Medal by EcoVadis, aleadingsustainability ratings provider, placing it in the top 5% of thecompanies assessed.The ratings by EcoVadis are widely used by the automotive and offshore wind OEMsto monitor the ESG credentials of potential suppliers and are based on adetailed assessment of operations in the areas of environment, sustainability,procurement, labour and human rights and ethics.The award follows the award by S&P Bond Rating Agency CICERO in 2022 which ratedthe Company's operations asLight GreenwithGood Governance.Pensana will continue to operate under the EcoVadis tracking and reportingsystem, as leadership in global sustainability is critical to its long-termgrowth strategy.Pensana's Blueprint for Sustainable Rare Earths, demonstrating our strategiccommitment to ESG, can be foundhere (https://pensana.us11.list-manage.com/track/click?u=74510681a1bb7db89c47fee65&id=a641020a77&e=badae3e7b5).The information contained within this announcement is considered by the Companyto constitute inside information as stipulated under the Market AbuseRegulations (EU) No.596/2014. Upon the publication of this announcement via aRegulatory Information Service, this inside information will be considered to bein the public domain. The person responsible for arranging for the release ofthis announcement on behalf of the Company isPaul Atherley, Chairman.
