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
Uganda Directorate of Geological Survey and Mines (DGSM) has approved the granting of a large-scale mining licence.

The Stage 1 mining licence covers about 44 km² of the nearly 300 km² of tenements at Makuutu.  

“We are pleased with the announcement . . . that the DGSM has officially approved [the] . . . granting the large-scale mining licence . . . which now completes all regulatory approvals on the award of the mining licence for the Makuutu project,” IoniRE MD Tim Harrison said.

Key Contracts, Suppliers and Consultants
RRM (installation contract); and DRA Global (DFS review).

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