Australia’s Ionic Rare Earths (ASX: IXR) on Friday secured a large-scale mining licence for its the Makuutu heavy rare earths project in Uganda.
The permit was granted by the Ugandan Directorate of Geological Survey and Mines to Rwenzori Rare Metals, a company in which Ionic Rare Earths has a 51% interest but has the right to earn up to 60%, Ionic said.
The rest of Makuutu is held by Rare Earth Elements Africa (REEA) with a 42% stake and local partners, who own the remaining 7% stake.
Located about 40 km east of the regional centre of Jinja and 120 km east of the capital city Kampala, in eastern Uganda, the Makuutu project comprises six licences.
The asset hosts heavy rare earth oxides, which are easily extracted by applying rudimentary mining and processing methods.
Stage one of the mining licence covers an area set for Ionic’s licence that constitutes 44 sq. km of Makuutu’s tenements covering 298 sq. km of land.
Ionic also released a positive feasibility study earlier this year and has received approval to build a demonstration plant at the project.
“This announcement reinforces the Makuutu Project as one of the world’s largest and most advanced development-ready heavy rare earth element assets, and we look forward to progressing the next steps and commissioning our Demonstration Plant at Makuutu,” managing director Tim Harrison said in the statement.
Ionic Technologies International, a 100% owned U.K. subsidiary acquired in 2022, has developed processes for the separation and recovery of rare earths from mining ore concentrates and recycled permanent magnets. The unit is focusing on the commercialization of the technology, the miner said.
Ionic Rare Earths expects the mine to run for 35 years, producing a 71% rich magnet and heavy rare earth carbonate product basket, but said the asset presents scale up potential through additional tenements.
Shares in the company jumped more than 18% on Friday, closing at A¢2 and leaving it with a market capitalization of A$ 113.1 million ($97.8 million).
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