Ugandan rare earth mining company Rwenzori Rare Metals has received approval from the Ministry of Energy & Mineral Development to proceed with the development of the Makuutu Heavy Rare Earths Project in eastern Uganda. A mining license has been issued – the first under the 2022 Mining Act.
The milestone brings the Makuutu project closer to a final investment decision, which is expected this year. Rwenzori Rare Metals plans to start production in 2026, with the company also securing a renewal of its exploration license for the area from the Ugandan Directorate of Geological Survey and Mines.
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Ruth Nankabirwa, Uganda’s Minister of Energy & Mineral Development, said “With a mineral resource estimate of 532 million tons of ionic adsorption clay containing 340,000 tons of rare earth oxides, the large-scale license award is the first step in developing one of the world’s largest and most advanced development-ready heavy rare earth element assets,” adding that the project will contribute taxes and royalties, while fostering skills development and job creation in the country.
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Tim Harrison, Managing Director at Ionic Rare Earths Limited – which holds a 60% stake in the project – added that “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 for our partners to qualify and validate.”
