Name of the Project
Makuutu rare earths project.

Location
Uganda, 120 km east of Kampala.

Project Owner/s
Ugandan company Rwenzori Rare Metals (RRM), which owns 100% of the Makuutu rare earths project. Ionic Rare Earths (IonicRE) is a 51% owner of RRM and progressing to 60% with the completion of the definitive feasibility study (DFS). IonicRE also maintains a first right over the remaining 40% of the project.

Project Description
The Stage 1 DFS proposes an openpit mining operation at an annualised mining rate of five-million tonnes a year of mineralisation from the project for total rare earth oxide equivalent production of 40 090 t.

The maiden ore reserve for Stage 1 over retention licence 1693 is 172.9-million tonnes grading 848 parts per million total rare earth oxide for 146 654 t of contained total rare earth oxide.

Stage 1 envisages production of 1 300 t/y of rare earths in the first ten years, averaging 1 156 t/y over the estimated 35-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $406-million and internal rate of return of 32.7%, with a payback of about three years.

Capital Expenditure
The project has an initial capital expenditure $120.8-million.

Planned Start/End Date
Construction started on a demonstration plant at the project in August 2023.

Latest Developments
IonicRE has welcomed advice that the Ugandan government has approved and gazetted its updated Mining and Minerals (Licensing) Regulations 2023.

The company has said that this is an important precursor to the granting of a mining licence for the Makuutu project.

“With this milestone, the company can now finalise the mining licence application fee payment, which is the final item required in Uganda and clears the path to expedite the award of the mining licence at Makuutu,” MD Tim Harrison has said.

Key Contracts, Suppliers and Consultants
RRM (installation contract).

Contact Details for Project Information
IonicRE, tel +61 3 9776 3434 or email admin@ionicre.com.