Land access agreements have now been secured for 92% of the mining licence application at the Makuutu rare earths project. Pic via Getty Images
Mining
Special Report: Ionic has reached a significant milestone in its development of the Makuutu rare earths project in Uganda after securing over 90% of land access agreements as part of Stage One development.
Ionic’s (ASX:IXR) flagship Makuutu project in Uganda, 60% owned by Ionic through local Ugandan operating entity, Rwenzori Rare Metals (RRM), is an ionic clay hosted rare earth element (REE) deposit, with mineralisation stretching 37km within the company’s tenure.
The project is one of the most advanced heavy rare earth projects globally with its Stage 1 DFS outlining a 35-year life initial project producing a 71% rich magnet and heavy rare earth carbonate (MREC) product basket.
IXR expects to produce its first MREC from the Makuutu demonstration plant in early ’24 to potential customers and offtakers who have shown interest in partnering with the company to secure magnet and heavy rare earth product.
IXR has now secured land access agreements for 92% of the full 44km2 mining licence application for Stage One development.
These agreements cover the Bugweri District (94% completed), Bugiri District (84% completed) and Mayuge District (90% completed).
Progress across all three districts is continuing rapidly and IXR expects to secure agreements covering close to 100% of the 44 km2 MLA area in the next ten days.
From here, formal issuance of the mining licence will occur.
IXR managing director Tim Harrison says Makuutu, which has the full support of the Ugandan government, is set to become the country’s flagship mine and new laws in Uganda’s mining sector had facilitated a conducive mineral investment climate.
“Uganda’s new mining laws and regulations offer a clear framework for mineral development in Uganda,” he says.
“Our focus on the delivery of the Makuutu heavy rare earths project positions us to provide a secure, sustainable, and traceable supply of magnet rare earth oxides which are critical for the energy transition, advanced manufacturing and defence.”
This article was developed in collaboration with Ionic Rare Earths, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
