- Potential alternatives for Makuutu heavy rare earths
- US supply-chain focus, with assessment driven by strong interest
- Evaluation to assess optimal structure to deliver long-term, sustainable supply of heavy rare earths
Ionic Rare Earths (ASX:IXR) has initiated a strategic review of the Makatuu rare earths project in Uganda driven by the western search for new and independent sources of medium and heavy rare earths supply.
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The move follows significant engagement with US and other Western-aligned interests.
The review also aims to evaluate opportunities to enhance value creation and accelerate development of Makuutu, a member of the Forum on Resource Geostrategic Engagement (FORGE), as part of Ionic’s broader strategy to establish an integrated, sustainable rare earth supply chain encompassing mining, refining and recycling operations.
Attention on Makuutu has intensified following China’s October 2025 decision to further restrict access to rare earths, requiring both foreign and domestic companies to obtain special licences for the export of “dual-use items” with both civilian and military applications.
The review will consider a range of potential strategic, structural and funding alternatives for Makuutu, including the introduction of strategic or government-backed partners, new investment structures, or potential listings in alternative jurisdictions.
MD, Tim Harrison, said the company’s strategic focus remains on developing a secure, traceable, and geopolitically independent supply chain for both light and heavy rare earths to supply Western markets, leveraging the synergies between Makuutu and its magnet recycling operations in Belfast, UK, and its Viridion refining and recycling joint venture in Brazil, together with its partnerships in the US including with Advanced Magnet Lab, Nth Cycle and US Strategic Metals (USSM).
“The Makuutu heavy rare earths project is an increasingly strategic shovel-ready magnet and heavy rare earth rich resource that can provide molecules to deliver a long-term, sustainable supply of magnet and heavy rare earths to Western markets,” he said.
“Since being added to the MSP, now renamed FORGE, there has been growing interest in Makuutu as currently one of the most advanced ionic adsorption clay (IAC) projects globally with product not committed to China.
“The project’s strategic importance has only further increased following China’s restrictions on magnet and heavy rare earth exports, given Makuutu’s product basket consists of 45% heavy rare earths. With the timeline now rapidly advancing towards enforcement of additional export restrictions on heavy rare earths from November 2026, we expect interest to continue to increase.
“As our recycling and refining operations advance and become the core focus of the business, and following discussions with various potential project partners, including in the United States, it is appropriate that we assess the optimal structure to maximise Makuutu’s value for IonicRE shareholders and position the asset within a broader global rare earths ecosystem.”
IXR was down 1.61% to 30.5¢. Mkt cap $70.06M.
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