UK-based rare earth developer Pensana expects its Angolan mining operation to benefit from the recently announced $555 million investment in the Lobito Rail Corridor, Kallanish reports.

A Trafigura-led consortium – Lobito Atlantic Railway – has been awarded a 30-year concession to operate the rail infrastructure corridor that runs around 1,300 kilometres. The line connects the Lobito port to Luau, in eastern Angola, close to the border of the Democratic Republic of the Congo (DRC). The Lobito railway extends across Angola and then continues for 400 km into the DRC to Kolwezi, the heart of the Copperbelt.

The consortium JV partners, which include Mota-Engil and Vecturis, plan to invest $455m in Angola and up to $100m in the DRC. There is also scope for future investment into an extension to Zambia. According to Trafigura, the railway will provide an alternative to east African ports where long delays and bottlenecks are “commonplace” and provide the “fastest export and import route from the region to Europe and the Americas.”

The rail infrastructure also offers the shortest and most direct route to port from the key mining district of Kolwezi, DRC, where exports of copper, cobalt and critical raw materials.

Commenting on the announcement, Pensana ceo Tim George said it was “perfect timing” for the investment in rail infrastructure. “It’s expected to have a very positive impact on the transport logistics during the Longonjo construction period and on the reagent and product transport during operations,” he says in a note.

The Longonjo mine in Angola is planned to produce 38,000 tonnes/year of mixed rare earth sulphate, containing 14,000 t of total rare earth oxides and 4,400 t of neodymium-praseodymium oxide. This production will be processed in the UK, targeting western permanent magnet demand from electric vehicle and wind turbine manufacturers.

Pensana expects to start main construction at Longonjo this year, with first production planned for 2025. The direct access to the Lobito Corridor rail and port infrastructure will enable the company to ship feedstock to Europe, unlocking the potential of one of the world’s largest undeveloped rare earth projects.