Ionic Rare Earths Limited (ASX: IXR) has announced that Rwenzori, owner of the Makuutu Heavy Rare Earth Project, has formally received the large-scale mining licence (LML00334) over the central Makuutu tenement.
The licence (LML00334) was signed on 17January 2024, at a ceremony in Kampala, by Dr Ruth Nankabirwa Ssentamu, the Ugandan Minister of Energy and Mineral Development (MEMD).
The award represents the first large scale mining licence to be issued in Uganda under the Mining Act of 2022. This further supports the flagship project status awarded to Makuutu in 2022 and reflects the strong support received from Uganda in the development of the project towards operations.
Tim Harrison, managing director, commented, “The official award of the mining licence is a tremendous achievement by all stakeholders involved, we thank the Ugandan government, and having navigated the new process together, we look forward to continue to invest in our project at Makuutu as we advance towards operations.”
The award of the licence is expected to boost supply chain and off-taker engagement, and positions Makuutu for targeted final investment decision later this year, with first production expected in 2026.
In addition, the demonstration plant continues to progress, with first mixed rare earths carbonate production on track for Q1 2024.
“Progress continues to be made at Makuutu’s demonstration plant, which will also be critical in de-risking the commercialization of the project through the production of value added, mixed rare earth carbonate (MREC) for our partners to qualify and validate,” added Harrison.
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