PERTH (miningweekly.com) – ASX-listed Ionic Rare Earths has inked a memorandum of understanding (MoU) with rare earths miner Chinalco over the development of its Makuutu rare earths project, in Uganda.
Under the terms of the MoU, the two companies will look to accelerate the development and first production of Makuutu to the mutual benefit of both companies, while also flagging potential future investment in Ionic or the Makuutu project directly, or offtake agreements for the rare earth produced by the Australian company.
“We are very pleased to have signed this MoU which further endorses the quality of the project and its strategic importance, and will now enable the Makuutu rare earth project to rapidly advance activities in the near term,” said Ionic MD Tim Harrison.
“We welcome the involvement of Chinalco and their ionic clay and rare earth separation arm China Rare Earths Jiangsu. Their knowledge on ionic absorption clay is second to none, and their involvement will also greatly enhance and accelerate planned development of Makuutu.”
Chinalco has completed an extensive due diligence review over the Makuutu project over the last 12 months.
The resource at the Makuutu project has been identified over a 20-km length and has demonstrated the potential for a long-life, low cost capital source of critical and heavy rare earths. The project has the potential to generate a high-margin product with an operating life of more than 30 years.