Ionic Rare Earths Limited
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What is the Significance of Ionic Rare Earths Mining Licence Granted for the Makuutu Project?
Makuutu Heavy Rare Earths Project: A Milestone in Uganda's Mining Industry
Ionic Rare Earths Limited (ASX: IXR) or IonicRE, a key player in the rare earths market, announced a significant advancement for its Makuutu Heavy Rare Earths Project in Uganda. On December 28, 2023, the Ugandan Directorate of Geological Survey and Mines (DGSM) provisionally granted the Stage 1 Large Scale Mining Licence (LML00334), marking a pivotal moment in Uganda's mining history.
First of Its Kind in Uganda
The granting of LML00334 is particularly noteworthy as it represents the first large-scale mining licence awarded in Uganda under the new Mining Act 2022. The Ugandan Minister of Energy and Mineral Development, Dr. Ruth Nankabirwa Ssentamu, is expected to formalize this development by signing the necessary documents, followed by gazetting.
Strategic Importance of the Makuutu Project
The Makuutu Project, led by IonicRE, stands as one of the world’s largest and most advanced development-ready heavy rare earth element assets. The project is crucial for supplying sustainable, secure, and traceable magnet and heavy rare earth elements, essential for the energy transition, advanced manufacturing, and defense sectors.
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Advancing the Demonstration Plant
The Makuutu Demonstration Plant is making significant strides, with the first Mixed Rare Earth Carbonate (MREC) production anticipated in Q1 2024. This development aligns with IonicRE's strategy to become a miner, refiner, and recycler of sustainable and traceable magnet and heavy rare earths.
Ownership and Expansion
IonicRE has agreed with its partners in Rwenzori Rare Metals Ltd to increase its interest in Makuutu to 94 percent. This move strengthens IonicRE’s position in the project and enhances its capacity to meet the growing demand for rare earths outside of existing supply chains, particularly those not committed to China.
Project Specifications and Exploration Targets
The mining licence covers approximately 44 square kilometers of the near 300 square kilometers of tenements at Makuutu. The current Mineral Resource Estimate (MRE) for the greater Makuutu area stands at 532 million tonnes at 640 ppm Total Rare Earth Oxide (TREO) with a cutoff grade of 200 ppm TREO minus Cerium Oxide (CeO2). Furthermore, IonicRE expects to update the Mineral Resource Estimate and Exploration Targets in Q1 2024, incorporating results from the Phase 5 drill program completed in Q4 2023.
Regulatory Compliance and Local Support
IonicRE's progress in securing the mining licence follows the recent gazetting of the updated Mining and Minerals (Licensing) Regulations 2023 in Uganda. The company has also successfully secured land access agreements over 95% of the LML00334 area and has received strong support from local stakeholders and landowners.
Ionic Technologies International Limited
Ionic Technologies International Limited, a wholly-owned UK subsidiary of IonicRE, focuses on the separation and recovery of rare earth elements from mining ore concentrates and recycled permanent magnets. This subsidiary is on track to produce high-value, separated, and traceable magnet rare earth products with grades exceeding 99. 9% REO.
Future Outlook: A Circular Economy Vision
IonicRE's three-pillar strategy aims to create a sustainable and traceable supply chain for magnet and heavy rare earth products. This includes the development of its own magnet and heavy rare earth refinery to separate the unique Makuutu basket into a full spectrum of REOs plus scandium. IonicRE’s approach aligns with the principles of the UN Global Compact, emphasizing responsible business practices in the rare earths sector.
The provisional granting of the mining licence for the Makuutu Heavy Rare Earths Project marks a new era in Uganda's mining industry and a significant step forward for IonicRE. With its focus on sustainable and traceable rare earth production, IonicRE is well-positioned to play a crucial role in the global shift towards net-zero carbon technologies and advanced manufacturing.
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