Ionic Rare Earths and Rwenzori Rare Metals Readies Makuutu Mine
The Makuutu Mine is one of the few ionic adsorption clay mines and a cost-efficient source of rare earth elements (#REE) outside China. It is located 120 kilometers east of Kampa, the capital city of Uganda.
The Makuutu mine is located just 10 kilometers from Highway 109 which links it to the Kampala and further on to the Port of Mombasa in Kenya. Thus, there is no need for massive investment for the transportation. A 132-kV transmission line passes directly over the mine, which makes electric power readily available. Water is the only resource that might require some infrastructural works to access it from nearby Lake Victoria, although rain harvesting might contribute to fulfill the needs.
On 4 April, China announced tighter controls on the export of medium and heavy Rare Earth Elements (REE) , including Disprosium, Gadolinium, Lutetium, Samarium, Scandium, Terbium and Yttrium and related products. Previously, China already restricted the export of Antimony (#Sb), Gallium (#Ga), and Germanium (#Ge). The new policy is in response to Trump’s punitive tariff on its main rival, China. Among other #CriticalMinerals, neodymium and praseodymium are not on the restricted list of REE of China.
At the moment, China produces up to 98% of the world’s medium and heavy rare earths. Outside China, there is only one heavy rare earth min in Brazil which exports mixed rare earth carbonate to China for processing.
Ionic Rare Earths (IonicRE) has identified Makuutu mine in Uganda as an alternative source for medium and heavy REE. Under the Mineral Security Partnership (MSP), IonicRE is intensifying discussions for financing in order to kickstart the mining process at Makuutu.
It is to be recalled that IonicRE )ASX: IXR) secured a 21-year mining licence for the Makuutu Rare Earth Mine in January 2024. Actually, IonicRE owns 60% in Rwenzori Rare Metals which, in turn, owns 100% of the Makuutu Mine. The mining licence covers nearly 300 square kilometers and is divided into several blocks labelled RL 1693, RL 7, RL 234, EL 147, EL 148, and EL 257. As a pilot, IonicRE produced a first batch of mixed rare earth carbonate to give confidence to financiers and offtakers.
“The clays of Makuutu present a low capital mining, extraction, and processing opportunity and are the most readily available global sources of heavy rare earth oxides.”
Ioninc Rare Earths MD Tim Harrison
Looking back at the project, the scoping study was completed in May 2021, while the Definitive Feasibility Study was done by March 2023. Based on the studies, it is estimated that Makuutu has about 173 million tonnes of total rare earth oxides (TREO) with 848 ppm content. Shortly afterwards, IonicRE increased its ownership in Rwenazori Rare Earths from 51% to 60%.
Basically, Ionic RE believes that Makuutu Mine can be up and running within a small timeframe. IonicRE has also a rare earth recycling facility in Belfast, Ireland. Working on both new and recycled REE, IonicRE is thus poised to capitalize on emerging opportunities. In view of full-scale production, Rwenzori Rare Metals and Ionic Rare Earths have started to develop community relations.