Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF) has passed a major milestone in the development of the Makuutu Heavy Rare Earths Project after the Ugandan Minister of Energy and Mineral Development Dr Ruth Nankabirwa Ssentamu signed and issued Large Scale Mining Licence (LML) 00334 for the project.
It marks the first large-scale mining licence to be awarded in Uganda and enables IXR to engage in supply chain and offtake discussions, while also enabling a final investment decision (FID).
The company is targeting an FID later this year with first production scheduled for 2026.
“Tremendous achievement”
Rwenzori Rare Metals Ltd, owner of the Makuutu Project, has formally received the granted large-scale Mining Licence which covers about 44 square kilometres of the project’s near 300 square kilometres of tenements.
“The official award of the mining licence is a tremendous achievement by all stakeholders involved,” Ionic Rare Earths managing director Tim Harrison said.
“We thank the Ugandan Government, and having navigated the new process together, we look forward to continuing to invest in our project at Makuutu as we advance towards operations.
“The formal awarding of the mining license at Makuutu to Rwenzori enables discussions with potential strategic and supply chain partners to progress to the next stage to bring Makuutu and a new supply of magnet and heavy rare earths to market.
“Progress continues to be made at Makuutu’s Demonstration Plant, which will also be critical in de-risking the commercialisation of the project through the production of value-added, mixed rare earth carbonate (MREC) for our partners to qualify and validate.”
IXR expects to begin producing MREC in the first quarter of this year, providing a revenue stream as development of the rest of the project continues.
Mining for the energy transition
“It is an important step forward for Ionic Rare Earths in mining, refining, and recycling the heavy rare earths critical for the energy transition, advanced manufacturing and defence,” Harrison continued.
“With the formal award of the Mining Licence in Uganda, it now reinforces the Makuutu Heavy Rare Earth Project as one of the world’s largest and most advanced development-ready heavy rare earth element assets, and we look forward to commissioning our Demonstration Plant at Makuutu.”
The Ugandan Directorate of Geological Survey and Mines has also renewed the highly prospective Exploration Licence 00147, which covers the majority of IXR’s existing exploration target at Makuutu and offers potential for long-term growth for the project.
The company is particularly keen to leverage Makuutu’s position as one of the only ionic absorption clay projects in development that has not committed product to China, with the goal of supplying new and emerging supply chains while decoupling from existing sources.