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 (TREO) for 146 654 t of contained TREO.

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 of $120.8-million.

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

Latest Developments
IonicRE has said that it hopes to make a final investment decision on the Makuutu project by the second half of next year.

"If we make an investment decision in the second half of 2024, then we would anticipate first production coming online late 2025," IonicRE MD Tim Harrison has said.

Harrison has said that the company will consider getting a strategic partner to raise money for the project.

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.