Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF) welcomes advice that the Ugandan Government has approved and gazetted its updated Mining and Minerals (Licensing) Regulations 2023, which clear the path for the company to obtain a mining licence for its 60%-owned Makuutu Heavy Rare Earths Project.
With the final piece of the puzzle in place, the company will now be able to lodge the US$5,400 fee payment for the project’s Mining Licence Application (MLA) to accelerate the review and award of the licence.
Achievement unlocked
“This is an important milestone for the Ugandan mining industry and has been a regulatory requirement for the grant of the company’s MLA at Makuutu,” Ionic managing director Tim Harrison said.
“With this milestone, the company can now finalise the MLA fee payment, which is the final item required in Uganda and clears the path to expedite the award of the mining licence at Makuutu.”
Critical project
Ionic revealed yesterday the discovery of rare earth elements (REE) of up to 1,337 parts per million (ppm) total rare earth oxide (TREO) during a phase 5 rotary air blast (RAB) campaign, some of the highest-grade REEs Makuutu has ever seen.
Significantly, most of the clay-hosted rare earth intersections were outside the 2022 mineral resource estimate and above the cut-off grade of 200 parts per million TREO-cerium oxide (CeO2).
“Our focus on the delivery of the Makuutu Heavy Rare Earths Project in Uganda positions us to provide a secure, sustainable and traceable supply of magnet rare earth oxides,” Harrison said.
“Along with our Belfast recycling facility, the Makuutu project is key to us harnessing our technology to accelerate our mining, refining and recycling of magnets and heavy rare earths, which are critical for the energy transition, advanced manufacturing, and defence.”
DFS review
Through Rwenzori Rare Metals Ltd, Ionic’s Ugandan subsidiary developing Makuutu, the company has held positive dialogues with representatives of the Ministry of Energy and Mineral Development and other branches of the Ugandan Government.
“The time and diligence to legislate Uganda’s new mining regulations shows the Government is intent on securing the right balance between growing the economy and ensuring sustainable mining practices.
“The company is preparing for a review of the Stage 1 DFS at the Makuutu Heavy Rare Earths project through local operating entity Rwenzori prior to initiating an update to support the next phase of development,” Harrison added.