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Pensana provides update on rare earth processing hub funding

Pensana provides update on rare earth processing hub funding Saltend Chemicals Park (Image credit px Group)

Pensana has provided an update on the funding for its proposed rare earth processing hub at the Humber Freeport.

Planning permission for the rare earth processing facility at Saltend Chemicals Park was granted last year[1]. The project is expected to support 450 jobs during construction and 150 high-value jobs once operational, with the opportunity for further expansion.

The listed company has announced that capital cost for the facility has been revised up to $250m from the previous estimate of $195m in May 2022. The increase was put down to the impact of inflation and a number of design changes.

ABG Sundal Collier recently confirmed that it will place a bond for circa $150m with its institutional investor clients for which the Company has received green bond accreditation by Shades of Green (formerly part of CICERO, now a part of S&P Global).

The company is in early discussions with UKIB and with other potential equity partners for the balance of the funding – comprising a circa $100m equity requirement.

Last month (October 2023), secretary of state for business and trade Kemi Badenoch offered Pensana a grant of up to £4m[2] towards the funding for the Saltend facility.

Pensana said the project was ready to begin construction once funding is secured, with the engineering design completed, the site cleared, the preparatory infrastructure works completed and the early-works contractors identified.

The company is also working to secure funding for its Longonjo mine and processing facility in Angola.

Rather than financing both projects contemporaneously, as previously proposed, the Saltend financing is now set to follow the Longonjo financing. The financings are independent of each other with no financier in common between the two projects.

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References

  1. ^ granted last year (www.insidermedia.com)
  2. ^ offered Pensana a grant of up to £4m (www.insidermedia.com)
  3. ^ Advertisement (www.insidermedia.com)