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
Not stated.
Latest Developments
Construction has started on a demonstration plant at the project. The installation contract is being conducted by RRM.
Earthworks have been completed, the facility shed has been fabricated and delivered to site, and the erection of the technical facility has started. Foundation formwork is being set out, which will be followed by superstructure construction.
The Makuutu demonstration plant technical facility will validate metallurgical testwork and provide further technical validation basis for grade control, mine design, materials handling, metallurgical reconciliation and construction activity. This will be done while supporting project financing and strategic partner activity.
RRM’s in-country manager has received feedback from a Ministry of Energy and Mineral Development (MEMD) representative, advising that the Ugandan authorities will expedite a review of outstanding relevant paperwork to allow for the gazetting of updated mining regulations.
IonicRE, through Rwenzori Rare Metals, has been in regular dialogue with representatives of the Ugandan MEMD for an update on the mining licence application and the Ugandan government’s progress with updating mining regulations.
The longer-than-expected time taken to update the mining regulations has extended timelines for their gazetting and, therefore, the approval of Makuutu’s MLA for retention licence 1693 (TN03834).
IonicRE adds that the MEMD has pledged its commitment to have the regulations gazetted as soon as appropriate reviews are completed.
“To demonstrate MEMD’s commitment to fast-track licensing decision-making, and to ensure [that] delays in considering the Makuutu mining licence over RL1693 are minimised, the Department of Geology, Survey and Mines has committed to reviewing the Stage 1 DFS to ensure [that] any areas of clarification can be identified and actioned immediately to support the swift evaluation of the MLA,” IonicRE MD Tim Harrison has said.
Key Contracts, Suppliers and Consultants
RRM (installation contract).
Contact Details for Project Information
IonicRE, tel +61 3 9776 3434 or email admin@ionicre.com.