Anywhere but China....5 Jul 2021 15:58
Given China's >80% monopoly of RE magnet manufacture and supply, their huge investment in environmentally-damaging coal-fired energy, their track record on environmentally disastrous RE mining and metals production within their own country, and their now-declared ambition to become the world's largest economy and show communism is superior in every way to democratic rule, - the EU and US have pretty much concluded the present RE refining and finished product supply arrangements are strategically and environmentally unworkable in future.
The EU has already introduced trading regulations which require that all their imports must be both ethically and environmentally, sustainably produced as well as their disposal and recycling . They have also listed RE metals as a critical resource for military and industrial purposes and will protect and secure their future independent access. The US is following a similar path.
Whether or not the West enforces its new stance through future tariff barriers against China hardly seems to matter, since the Chinese have a huge projected internal demand for their own production of REs over the next 10 years. The West is has no option now but to bite the bullet and secure its own independent RE chains of supply and marketing in very short time indeed.
Pensana has a lot of the environmental and sustainability issues catered for - clean hydrogen energy at Saltend, hydro at Longonjo, ethical sourcing, sustainable production of low-volume high-level-concentrate, back end magnet recycling - as well as the advantages of Atlantic shipping routes, short-hop rail-to- port links in Angola, demonstrable Angolan government support, UK freeport status, etc. Baroness Northover I'm guessing was not a casual appointee, and we must be assume she is working hard promoting Pensana's ticket inside government and industry circles.
All of which brings me to the point that Pensana has by now pretty much done what it needs, to line itself up as an attractive early jumping off point for the UK Govt to demonstrate it is on the ball in terms of taking REs back within its own control.
Clearly these are bigger issues than speculation who may be future potential customers for Pensana's output, or whether they will be able to process feeds other than Longonjo, etc - that's pretty much line of business-as-usual stuff for Pensana's future management.
It's the macro not the micro at the moment - and Pensana just needs to keep up the positive news flow - especially re: financing and ground work.
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