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) announced an agreement with RRM partners in December 2023 to increase the company’s stake in RMM and the Makuutu project from 60% to 94%. IonicRE is also in discussions with partners on acquiring the remaining 6% ownership.

Project Description
The Stage 1 definitive feasibility study (DFS) proposes an openpit mining operation at an annualised mining rate of five-million tonnes a year of mineralisation for total rare-earth oxide (TREO) 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 (ppm) 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
The project is aiming for a final investment decision later this year, with first product to customers in early 2026.

Latest Developments
IonicRE has confirmed that it is advancing discussions on the development of the Makuutu project, as China’s latest rare earth export restrictions heighten the urgency of establishing a Western supply chain.

On April 4, China announced new export controls on several medium and heavy rare-earth elements, including dysprosium, gadolinium, lutetium, samarium, scandium, terbium, and yttrium-related materials. These restrictions add to earlier controls on antimony, gallium, germanium, and the technology used to manufacture rare earth magnets.

The move forms part of China’s response to the US’s latest round of trade tariffs introduced in early April and signals greater scrutiny over rare earth shipments to international markets.

According to IonicRE, China accounts for about 90% of global rare earth production and 98% of all medium and heavy rare earths, underscoring Beijing’s dominance in markets essential to clean energy, defence, and advanced manufacturing.

Currently, Brazil hosts the only heavy rare earth operation outside of China. That project exports mixed rare-earth carbonate to Southeast Asia for processing within China’s supply chain.

Although neodymium and praseodymium were excluded from the latest restrictions, IonicRE says the announcement has nonetheless sharpened global attention on the need for alternative sources of rare earths.

The company notes that Makuutu’s product basket includes one of the highest proportions of heavy rare earths discovered to date – about 45% medium and heavy rare-earth elements –making it a strong contender for the long-term supply of magnet and heavy rare-earth oxides.

To accelerate development of the shovel-ready project, IonicRE is advancing financing talks with members of the Mineral Security Partnership (MSP) and prospective offtake partners.

The MSP is a global initiative led by the US to support the development of diverse and sustainable critical mineral supply chains. It collaborates with host governments and industry to provide targeted financial and diplomatic backing for strategic projects along the value chain.

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.