Highlights
- Multinational diplomats reaffirm commitment to the Lobito Corridor, a transcontinental infrastructure initiative connecting Angola, DRC, and Zambia to global markets.
- Pensana’s Longonjo rare earth mine represents a strategic asset in diversifying critical mineral supply chains away from China while driving economic development.
- The project aims to transform regional trade, reduce transport times, create jobs, and support inclusive economic growth across the Southern African Development Community region.
In a show of international support, U.S. Ambassador James Story, along with 15 ambassadors representing G7 nations, the Partnership for Global Infrastructure Investment (PGII), the European Union, and the United Nations, reaffirmed their commitment to advancing critical infrastructure and economic development in Angola through sustained investment in the Lobito Corridor.
The U.S. Embassy reported (opens in a new tab) that the ambassador would visit Lobito Corridor promoting mutual prosperity via infrastructure development and commercial activity as the U.S. seeks to catch up with China on the continent.
The delegation visited Huambo province and the strategic Longonjo municipality, where they attended the groundbreaking ceremony for the Pensana rare earth mine (opens in a new tab)—a key component in building resilient global supply chains for critical minerals essential to the energy transition and advanced technologies. Ambassador Story emphasized full U.S. commitment to multi-sector projects, including solar energy, railway expansion, agriculture, and regional economic integration, all coordinated in partnership with the Angolan government.
UN Resident Coordinator Zahira Virani underscored the Corridor’s importance beyond trade, calling it a “comprehensive development tool” for inclusive growth, job creation, and sustainable prosperity for the Angolan people. EU Ambassador Rosário Bento Pais echoed this sentiment, noting that European investments and technical assistance are focused on agriculture, energy, digital training, and a robust business environment to attract private capital from countries like Belgium and France.
The visit stems from the October 2023 Memorandum of Understanding between Angola, the Democratic Republic of Congo, Zambia, the United States, and the European Union, establishing a framework to transform the Lobito Corridor into a leading African economic artery with global implications for mineral security and green development.
So what is the Lobito Corridor?
The Lobito Corridor (opens in a new tab) is a major transcontinental infrastructure initiative linking Angola, the Democratic Republic of the Congo (DRC), and Zambia to global markets via Angola’s Port of Lobito. Launched in May 2023 under the G7’s Partnership for Global Infrastructure and Investment (PGII), and jointly supported by the EU and U.S., the Corridor aims to transform regional trade and logistics by reducing transport times, lowering export costs, and boosting connectivity for key sectors like mining, agriculture, energy, and logistics. The corridor includes coordinated infrastructure development, trade facilitation measures, and harmonized regulatory frameworks, as outlined in the Lobito Corridor Transit Transport Facilitation Agency (LCTTFA) Agreement.
Backed by the EU, U.S., AfDB, and Africa Finance Corporation, the project is designed to generate inclusive economic growth, expand value chains, create jobs, and improve SME participation across the Southern African Development Community (SADC) region.
Pensana’s Longonjo Rare Earth Mine– A Strategic Asset in Global Magnet Metal Supply
Pensana is advancing development of the Longonjo rare earth mine in central Angola, positioned to become one of the world’s largest and highest-grade sources of magnet metal rare earths—critical materials used in electric vehicles, wind turbines, and advanced electronics. Located just 60 km west of Huambo and directly linked to the Lobito Corridor railway, the site enables efficient transport of processed material to the Atlantic port of Lobito for global export.
The project features a fully integrated mining and processing operation, including an open-pit mine, concentrator, recovery and calcination plants, and a chemical refinery. It will produce mixed rare earth carbonate (MREC), a high-value intermediate product, ready for international markets. Supporting infrastructure includes tailings storage built to meet Global Industry Standard on Tailings Management, bulk power and water supply systems, as well as on-site facilities for workers.
Strategically located and export-ready, Longonjo is a cornerstone of Western efforts to diversify critical mineral supply chains away from China while driving economic development in Angola through job creation, industrial investment, and responsible resource management.
Pensana PLC
Pensana Plc (opens in a new tab), listed on the LSE, is in a pre-revenue, development-stage phase and remains highly speculative from a financial standpoint. The company, with a market cap of £80.69 million, is not yet generating sales and posts a trailing twelve-month (TTM) net loss of £5.26 million, reflected in a negative EBITDA of -£5.36 million and EPS of -0.02.
With no operating income or profit margin, its Enterprise Value/EBITDA ratio of -20.93 signals a high cash-burn profile typical of early-stage mining ventures. Its balance sheet raises concerns as cash reserves are minimal at just £40.13k, while total debt stands at £15.39 million, leading to a low current ratio of 0.07, implying potential liquidity stress.
The debt-to-equity ratio of 31.88% is manageable but not ideal in the absence of revenue. Despite financial fragility, investor interest remains steady with an 8.02% one-year share price increase and significant insider ownership (35.54%), reflecting management confidence. Compared to benchmark mining developers, Pensana’s valuation is rich (P/B of 2.16) given its current stage and lack of earnings, but its strategic positioning in the rare earth supply chain and tie to the Lobito Corridor offer long-term potential—contingent on successful execution, financing, and commissioning of the Longonjo project.
As of April 4, 2025, Pensana Plc’s top 20 shareholders collectively own 261,687,795 shares, representing 90% of the company’s issued capital of 292,371,096 shares. The largest shareholders include Fundo Soberano de Angola (opens in a new tab) (sovereign wealth fund of Angola) with 26.2% (approximately 75.5 million shares), M&G Investment Management Limited (opens in a new tab) (a London investment house) holding 11.9% (around 34.2 million shares), and U.S.-based BNY Mellon Advisors, Inc (opens in a new tab). with 4.07% (about 11.8 million shares). Additionally, company insiders such as Chairman Paul Atherley (opens in a new tab) and CEO Timothy George (opens in a new tab) hold 5.668% and 0.4446% of shares, respectively
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