ASX-listed Ionic Rare Earths has, through its 60%-owned Rwenzori Rare Metals subsidiary, initiated a strategic review of the Makuutu heavy rare earths project, in Uganda, amid strong inbound interest and a global, Western search for new and independent sources of medium and heavy rare earths supply.

The company states that the review is aimed at evaluating opportunities to enhance value creation and accelerate development at Makuutu. It will consider a range of potential strategic, structural and funding alternatives for Makuutu, including the introduction of strategic or government-backed partners, new investment structures or potential listings in alternative jurisdictions.

“The Makuutu project is an increasingly strategic shovel-ready magnet and heavy rare earth rich resource that can provide molecules to deliver a long-term, sustainable supply of magnet and heavy rare earths to Western markets. There has been growing interest in Makuutu as currently one of the most advanced ionic adsorption clay projects globally with product not committed to China.

“The project’s strategic importance has only further increased following China’s restrictions on magnet and heavy rare earth exports, given that Makuutu’s product basket consists of 45% heavy rare earths. With the timeline now rapidly advancing towards enforcement of additional export restrictions on heavy rare earths from November, we expect interest to continue to increase.

“As our recycling and refining operations advance and become the core focus of the business, and following discussions with various potential project partners, including in the US, it is appropriate that we assess the optimal structure to maximise Makuutu’s value for Ionic shareholders and position the asset within a broader global rare earths ecosystem,” Ionic MD Tim Harrison says.

Ionic says it has participated in a range of discussions with potential project partners including in the US, with these talks centred on the need to develop secure and sustainable rare earth supply chains for the world’s biggest economy.

“Ionic has spent significant time over the past year engaging with US stakeholders, building partnerships with leading companies in the industry as well as fostering relationships across the entire value chain, from Washington to Detroit.

“Given the impetus from the Trump administration, there has never been a better time to explore how Makuutu is positioned within US rare earth supply chains, as the January 2027 deadline fast approaches and additional export restrictions loom.

“While Ionic’s focus is on building a global industrial business based on magnet recycling, the Company has invested significantly in Makuutu and we are determined to unlock value for shareholders from this project, which is a hugely strategic asset in the race to build secure and sustainable Western rare earths supply chains,” comments Ionic chairperson Brett Lynch.