Australia's Ionic Rare Earths has secured a large-scale mining license for its Makuutu heavy rare earths project in Uganda. The permit, granted by the Ugandan Directorate of Geological Survey and Mines (DGSM), was awarded to Rwenzori Rare Metals, a company majority-owned by Ionic Rare Earths. The Makuutu project, located 40 kilometers (km) east of Jinja and 120 km east of Kampala, consists of six licenses and hosts easily extractable heavy rare earth oxides. Stage one of the license covers 44 km² of Makuutu’s tenements. Ionic Rare Earths also announced a positive feasibility study and approval for building a demonstration plant at the site, marking a significant step towards commercialization. Ionic Technologies International, a UK subsidiary acquired in 2022, is tasked with developing processes for rare earth separation and recovery from ore concentrates and recycled magnets, focusing on technology commercialization.
The rest of the Makuutu project is held by Rare Earth Elements Africa and local partners. Ionic Rare Earths anticipates a minimum thirty-five-year mine life, projecting a 71 percent rich magnet and heavy rare earth carbonate product basket. The company's shares surged over 18 percent on the news, closing at $0.017 and giving it a market capitalization of $72 million.