Uganda Grants License for Mukuutu Heavy Rare Earths Project
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.
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.
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.”
The Makuutu project is estimated to have a 50-year production lifespan.
