ASX-listed Ionic Rare Earths will increase its stake in the Mauuku rare earth project’s operating company Rwenzori Rare Metals (RRM) from 51% to 60% upon the completion of a feasibility study, which is expected to be submitted to the Ugandan government at the end of October.

Meanwhile, the environmental- and social-impact assessment (ESIA) has continued to progress. Two public hearings were completed in early August in the Bugweri and Mayuge districts, with significant turnout reported from the National Environmental Management Authority (Nema), the Ministry of Energy and Mineral Development (MEMD), government representatives, district leadership, local communities and stakeholders, who Ionic said provided strong support for the project.

The total registered attendees at the hearings over the two days amounted to 3 800 people, which indicated a keen interest in the project by the Ugandan community.

Nema and the MEMD are working to complete final statutory requirements to evaluate the ESIA and provide a formal decision.

The detailed ESIA report was submitted to Nema in December last year. After a review by government stakeholders and respective authorities, the public disclosure process was initiated in May with stakeholders providing feedback on the ESIA to Nema.

The process of developing the resettlement action plan (RAP) started in January and has also made progress, with final studies due to be completed by the end of October. 

The RAP will present the strategy to acquire land for the entire licence area over the life of the project, while ensuring that project-affected persons (PAPs), including vulnerable people, are not financially or socially disadvantaged.

Ionic said a process of stakeholder identification and engagement was at an advanced stage. This involves engaging PAPs, as well as directly-affected key village, sub-county and district stakeholders throughout the three districts of Bugweri, Mayuge and Bugiri, as well as national stakeholders.
 
All PAPs have been identified and the majority of their parcels of land have been mapped. Once the ESIA has been approved by Nema and the MEMD, the project will undertake a due diligence process of confirming the areas mapped, as well as entering into memorandums of understanding with PAPs to support land access.

Over the past two months, RRM has also hosted key delegations from the Ugandan Parliament and Ministry in an ongoing show of support for Makuutu, Ionic said.

Energy and Mineral Development Minister Ruth Nankabirwa Ssentamu has emphasised the importance of the Makuutu project, with a focus on the social benefits to the Busoga region and the government.

She said the project would serve to develop the Busoga region through employment opportunities, enhancement of services such as roads, power, health and education facilities, and thereby promote socioeconomic development.