Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF) is a step closer to developing the flagship Makuutu Rare Earth Project in Uganda after securing National Environmental Management Authority (NEMA) approval for its Environmental and Social Impact Assessment (ESIA).
This approval follows a nine-month assessment by NEMA, culminating in two large public hearings with more than 3,800 registered attendees.
The ESIA is a fundamental requirement to submit an application for Makuutu’s mining lease, expected at the end of this month when the feasibility study (FS) is completed.
Makuutu is being developed by Rwenzori Rare Metals Ltd (RRM), a private Ugandan company which owns 100% of the Makuutu Project, and in which IonicRE will become a 60% owner with the completion of the FS.
Vote of confidence
“I wish to start by thanking all Ugandan Government ministers and officials for their support of the Makuutu Project and NEMA for their engagement, review and approval of the ESIA,” IonicRE managing director Tim Harrison said during a ceremony to present the award at NEMA’s headquarters in Kampala.
“This is a significant milestone and vote of confidence by the Government and community groups - signifying the pivotal role Makuutu will play in the social, economic development and growth of Uganda.
“I would also like to convey my gratitude to the local stakeholder communities for embracing the Makuutu Project. The project aspires to be a significant contributor over a long period of time in Uganda.
“To employ and train directly from within the local communities, source from local businesses and create further improved services, leading to an overall improved quality of life across the districts that host the project.”
“My congratulations and thanks extend to the expanding Rwenzori team on the ground at Makuutu, who have worked tirelessly to engage and listen to the needs of local community groups, Kingdom representatives, members of the Bugweri, Mayuge and Bugiri districts and Ugandan Government officials.
“This project will set its sights on becoming Uganda’s flagship sustainable mine. Our vision is that Makuutu will provide global customers with an alternative supply of magnet and heavy rare earth elements needed for a net-zero carbon world for 50 years and beyond.”
Starting small
IonicRE will initially focus on mining the 44 square-kilometre Makuutu Central Zone (MCZ), an area with an indicated resource of 259 million tonnes at 740 parts per million TREO-CeO2.
The MLA the company will submit to the Ugandan Government will cover this area as opposed to the total Makuutu Project area of about 300 square kilometres, where mining in some areas would not take place for well in excess of 20 years in the future.
Pending the award of the MLA, expected in the first quarter of 2023, RRM will work with Ugandan authorities on a Mineral Development Agreement (MDA) to establish the fiscal terms for the mine development.
Maintaining good relations
Over the past few months, RRM has hosted key delegations from the Ugandan Parliament and Ministry of Energy and Mineral Development at Makuutu to meet and engage with the local communities.
RRM has also continued to roll out sustainable social development programs for the local communities in the Bugweri, Mayuge and Bugiri districts, one of the poorest parts of Africa, by providing employment, support, and improved social services.
Some of the projects include renovating the Buwaaya police station, servicing 17 community boreholes to improve the poor quality of drinking water, donating 86 tree seedlings to the Mayuge District, donating footballs to Makuutu primary schools in support of youth sports, and renovating Bugweri District’s Natural Resource Office.
As well, the process of identifying and engaging with stakeholders for the Resettlement Action Plan (RAP) is in the advanced stages of completion.
With the EISA now approved, RRM will undertake a due diligence process to confirm the areas mapped as well as enter into Memorandums of Understanding (MOUs) with the affected people to support land access.
RRM serviced 17 community boreholes to improve the quality of drinking water.
The newly-renovated Natural Resource Office Block at Bugweri District.
Flagship project
IonicRE is focused on developing Makuutu into a significant, long-life, high-margin, supplier of high-value magnet and REOs.
Makuutu is an advanced-stage, ionic adsorption clay (IAC) hosted REE project highlighted by near-surface mineralisation and significant exploration upside.
The clay-hosted geology at Makuutu is similar to major IAC rare earths projects in southern China, the majority supplier of the world’s low-cost rare earths, specifically the high-value heavy REOs.
Makuutu has excellent infrastructure, which includes access to major highways, roads, power, water and a professional workforce.