Ionic wins licence in Uganda for rare earth elements mining

The Makuutu project has a mineral resource estimate of 532 million tonnes at 640 parts per million (ppm) total rare earth oxides.

October 20, 2023

The licence was granted after an update to Uganda’s Mining and Minerals (Licencing) Regulations 2023 law. 

Credit: Joaquin Corbalan P/Shutterstock.com.

Australian mineral exploration company Ionic Rare Earths has secured a large-scale mining licence from the Ugandan Directorate of Geological Survey and Mines (DGSM) for the Makuutu heavy rare earth project.

The licence was secured by Rwenzori Rare Metals, a company in which Ionic Rare Earths owns a 51% interest, while Rare Earth Elements Africa (REEA) holds a 42% stake. Ugandan Partners holds the remaining 7% stake.

Rwenzori holds a 100% stake in the Makuutu project, which covers around 298km² and includes six licences.

Located 40km from Jinja and 120km from the Ugandan capital city of Kampala, the project has a geology that hosts heavy rare earth oxides (HREO). These metal oxides can be extracted using rudimentary mining and processing methods.

The project is said to have a current mineral resource estimate of 532 million tonnes at 640ppm total rare earth oxides (TREO), with a cut-off grade of 200ppm total rare earth oxides minus cerium (TREO-CeO₂).

Stage one of the mining licence covers an area set for Ionic’s mining licence that constitutes 44km² of Makuutu’s tenements covering 298km² of land.

Ionic also released a positive feasibility study earlier this year and has received approval to build a demonstration plant at the project.

Ionic Rare Earths managing director Tim Harrison said: “We are pleased with the announcement today that the DGSM has officially approved for granting the large-scale mining licence TN03834 over RL 1693, which now completes all regulatory approvals on the award of the mining licence for the Makuutu heavy rare earth project.

“This is a vital step for Ionic Rare Earths and Rwenzori, and in mining, refining, and recycling heavy rare earths critical for the energy transition, advanced manufacturing, and defence.”

Harrison added: “This announcement reinforces the Makuutu project as one of the world’s largest and most advanced development-ready heavy rare earth element assets, and we look forward to progressing the next steps and commissioning our Demonstration Plant at Makuutu.”