Makuutu rare earths project, Uganda – update
Name of the Project
Makuutu rare earths project.
Location
Uganda, 120 km east of Kampala.
Project Owner/s
Ugandan company Rwenzori Rare Metals (RRM), which owns 100% of the project. Ionic Rare Earths (IonicRE) owns 60% of RRM. IonicRE also maintains a first right over the remaining 40% of the project.
Project Description
The Stage 1 DFS proposes an openpit mining operation at an annualised mining rate of five-million tonnes a year of mineralisation from the project for total rare-earth oxide equivalent production of 40 090 t.
The maiden ore reserve for Stage 1 over retention licence 1693 is 172.9-million tonnes grading 848 parts per million total rare-earth oxide (TREO) for 146 654 t of contained TREO.
Stage 1 envisages production of 1 300 t/y of rare earths in the first ten years, averaging 1 156 t/y over the estimated 35-year mine life.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $406-million and internal rate of return of 32.7%, with a payback of about three years.
Capital Expenditure
The project has an initial capital expenditure of $120.8-million.
Planned Start/End Date
Construction started on a demonstration plant at the project in August 2023.
Latest Developments
IonicRE’s Ugandan subsidiary has land access agreements in place for 95% of the mining licence area for the project.
IonicRE is now engaging with the Ugandan authorities on the formal award of a Stage 1 mining licence over the area.
Key Contracts, Suppliers and Consultants
RRM (installation contract); and DRA Global (DFS review).
Contact Details for Project Information
IonicRE, tel +61 3 9776 3434 or email admin@ionicre.com.
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