Pensana Plc Pensana breaks ground at Saltend and secures ATF funding

 
TIDMPRE 
 
22 July 2022 
 
                 THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION 
 
                                  Pensana Plc 
 
                         ("Pensana" or the "Company") 
 
           Pensana breaks ground at Saltend and secures ATF funding 
 
Highlights 
 
  * Ground breaking at Saltend rare earth processing hub, with attendance from 
    Secretary of State for Business, Energy and Industrial Strategy Rt Hon 
    Kwasi Kwarteng MP 
  * An important next step in the world's first independent and sustainable 
    rare earth supply chain 
      + Production to commence in 2023, with plans to produce 5% of global 
        magnet metals 
      + US$195m plant to play key role in 'levelling up', creating long term, 
        high value jobs 
  * Funding from the UK Government's Automotive Transformation Fund, 
    demonstrating strong support for Pensana's important role in the UK's 
    magnet metals supply chain 
  * Significant interest from electric vehicle and wind turbine OEMs, looking 
    to secure magnet metal rare earths with low embedded carbon 
  * Kwarteng also launched the UK Government's Critical Minerals Strategy at 
    the ceremony 
 
Ground breaking 
 
Pensana announces that it has broken ground at its Saltend rare earth 
processing hub, a key development in the Company's plans to create the world's 
first independent and sustainable rare earth supply chain. Located in the 
Humber Freeport in Hull, Saltend is set to become the world's first rare earth 
processing facility powered by offshore wind, producing the key components for 
electric vehicle and offshore wind original equipment manufacturers with 
low-embedded carbon. 
 
Pensana's project was endorsed by the Rt Hon Kwasi Kwarteng MP, Secretary of 
State at the Department of Business, Energy and Industrial Strategy, who was 
present at the ground-breaking ceremony, demonstrating strong government 
support for Saltend and the Company. 
 
Following a 12 month construction period, the US$195m state-of-the-art plant is 
targeting production in late 2023, before ramping up to full capacity in 2024. 
The Company aims to produce 12,500 tonnes of separated rare earths, including 
4,500 tonnes of the critically important magnet metal rare earths, which 
represent over 5% of world supply. Saltend will employ over 450 people during 
the 12 month construction phase and will create 125 long-term, high value jobs, 
demonstrating 'levelling up' in action. 
 
Automotive Transformation Fund support 
 
Pensana is also pleased to announce that it has secured funding under the UK 
Government's £1bn Automotive Transformation Fund ("ATF") to support development 
of the Saltend rare earths processing hub. The ATF is a funding programme that 
has been developed to promote the creation of a high-value end-to-end 
electrified automotive supply chain in the UK. It is an important mechanism to 
reach targets set out in the UK Government's 10-point plan for a green 
industrial revolution and its recent Transport Decarbonisation Plan. 
 
Critical Minerals Strategy 
 
During the ground breaking ceremony, the Rt Hon Kwasi Kwarteng MP also 
announced the UK Government's Critical Minerals Strategy, which details the 
Government's approach to securing technology-critical minerals and metals and 
is an important step towards securing a resilient, long-term supply chain to 
deliver a green industrial revolution for the UK. 
 
Pensana Chairman Paul Atherley commented: 
 
"It is a great privilege to have broken ground on the world's first independent 
and sustainable rare earths separation plant. This is a huge milestone for both 
Pensana, the Humber region and the UK, as part of our ambition to establish a 
critical magnet metals supply chain to secure the green energy transition. 
 
"Securing ATF funding is a key development, demonstrating the UK Government's 
support for this important project in line with the newly launched Critical 
Minerals Strategy. Pensana is set to play a vital role in transforming the UK's 
electric vehicle and offshore wind industries, by producing low-embedded carbon 
magnet metals and creating high value local jobs." 
 
Kwasi Kwarteng MP, Secretary of State at the Department of Business, Energy and 
Industrial Strategy, commented: 
 
"Pensana breaking ground today has been made possible in part through 
government support and shows how our plans to secure an internationally 
competitive electric vehicle supply chain in the UK continues to gain momentum. 
This incredible facility will be the only of its kind in Europe and will help 
secure the resilience of Britain's supplies into the future. 
 
"That's why we've also launched the UK's first Critical Mineral Strategy, 
setting out plans to develop robust supplies of minerals that are key to our 
economic success and national security. The strategy will bolster our 
resilience to market shocks and geopolitical events, while supplying key 
industries such as automotive and defence." 
 
                                    -ENDS- 
 
For further information, please contact: 
 
Shareholder/analyst enquiries: 
 
Pensana Plc 
 
Paul Atherley, 
Chairman 
IR@pensana.co.uk 
 
Tim George, Chief Executive Officer 
 
Rob Kaplan, Chief Financial Officer 
 
Virginia Skroski, Head of Investor Relations & Communications 
 
Media enquiries: 
 
FGS Global: 
 
Gordon Simpson / Richard Crowley 
Pensana-LON@fgsglobal.com 
 
The information contained within this announcement is considered by the Company 
to constitute inside information as stipulated under the Market Abuse 
Regulations (EU) No.596/2014. Upon the publication of this announcement via a 
Regulatory Information Service, this inside information will be considered to 
be in the public domain. The person responsible for arranging for the release 
of this announcement on behalf of the Company is Paul Atherley (Chairman). 
 
About Pensana Plc 
 
The electrification of motive power is by far the most important part of the 
energy transition and one of the biggest energy transitions in history. Magnet 
metal rare earths are central to the transition away from internal combustion 
engines and critical to electric vehicles and offshore wind turbines. 
 
Pensana plans to establish Saltend as an independent and sustainable processing 
hub supplying the key magnet metal oxides to a market which is currently 
dominated by China. The US$195 million Saltend facility is being designed to 
produce 12,500 tonnes per annum of rare earth oxides, of which 4,500 - 5,000 
tonnes will be neodymium and praseodymium (NdPr), representing over 5% of the 
world market in 2025. 
 
Pensana's plug and play facility is located within the world class Saltend 
Chemicals Park, a cluster of leading chemicals and renewable energy businesses 
in the Humber Freeport and will create over 500 jobs during construction and 
over 125 direct jobs once in production. 
 
It will be the first major separation facility to be established in over a 
decade and will become one of only three major producers located outside China. 
 
Pensana is aiming to establish Saltend as an attractive alternative for mining 
companies who may otherwise be limited to selling their products to China, 
having designed the facility to be easily adapted to cater for a range of rare 
earth feedstocks. 
 
www.pensana.co.uk 
 
 
 
END
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