Hull-based Rare earth processing plant Pensana predicts production start date for late 2023

Bosses behind plans to create Europe's only rare earth processing plant on the banks of the Humber have said they expect operations to begin at the end of 2023.

Stock market-listed Pensana announced that its development of the Saltend rare earth separation facility in the Humber Freeport had received from major European and US electric vehicle and wind turbine OEMS to secure magnet metal supply chain.

Rare earth is a crucial component in the production of both electric vehicles and off shore wind farms. Currently rare earth is chiefly processed in China but Pensana began work last summer to develop a facility here in the UK.

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It was granted permission to build a £100m factory at Saltend in the city to process the rare earth which it will import from its own mines in Angola.

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Saltend

Pensana also announced an estimated capital expenditure from US$525 million to US$494 million with further reductions anticipated.

Furthermore it confirmed the arrival of a memorandum of understanding with a key Asian trading house for 50% of Saltend’s production

Pensana Chairman, Paul Atherley said: “Reducing our capital and operating costs is a significant achievement by the technical team led by CEO Tim George, especially given the inflationary pressures and supply chain constraints affecting projects globally. The lower capital and strong operating margins will make the project attractive to our Financiers and are expected to lower the overall cost of finance.

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"We continue to have very positive discussions with some of the world’s major automotive and wind turbine manufacturers, who recognise the strength of Pensana’s model and the security of supply we can provide for these essential industries. With only one major magnet metal rare earth producer outside China, transparent and independent capacity is urgently required, particularly in Europe.

"Pensana is excellently positioned to bring high value manufacturing back to the UK and be a first mover in meeting this burgeoning demand for critical magnet metals.”

Pensana expects to create 100 jobs at its Saltend facility with many more roles to be created in the wider regional supply chain.