Ionic Rare Earths have confirmed the technical and economic viability of a sustainable and long-life supply of magnet and heavy rare earth from a stage one definitive feasibility study of its Makuutu Rare Earths Project in the east African nation of Uganda.
Ionic is touting a 35-year mine life with a post-tax total cash flow of $1.46 billion, with first-stage production targeting 5 million tonnes of 71 per cent heavy rare earth.
The Company, already owning Rwenzori Rare Metals, will acquire 60 per cent of the project post-DFS while holding first rights over the remaining interest in Makuutu.
Ionic Managing Director Tim Harrison said the DFS confirms the unique and geopolitically strategic asset’s capability to supply magnet and heavy rare earth into western supply chains.
Evidence currently shows that countries are motivated to secure sustainable, traceable supplies of these critical raw materials to support their domestic manufacturing ambitions and to support both the energy transition, and increasingly, military and defence requirements to provide sovereign capability and global security,” he said.
“This Stage 1 study provides a path to production at Makuutu, which has the potential for significant growth into the future through the conversion of the other tenements at Makuutu towards additional MLAs over the coming decade.”
“Makuutu is now advancing towards a Final Investment Decision with the capability to provide more
heavy rare earths per annum from our initial Stage 1 Project than existing western light rare earth
hard rock mines in production today.”
Next steps
Ionic intends to significantly increase production from the initial Stage 1 focus and expand into a forecast increase in demand for the most sought-after rare earth, with the next phase of work to build a demonstration plant to optimise production capacity and economics further.
