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Ionic Rare Earths (ASX:IXR) gets ESIA approval for Makuutu, Uganda

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ASX:IXR      MCAP $48.69M
27 October 2022 13:28 (AEDT)

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Ionic Rare Earths (IXR) has been granted its environmental and social impact assessment (ESIA) approval for the Makuutu rare earths project in Uganda.

The approval comes from the Ugandan National Environmental Management Authority (NEMA) following a nine-month assessment period.

There was an award ceremony held yesterday in Kampala at NEMA’s headquarters in recognition of the “flagship nature” of the project and its significance to Uganda’s development outlook.

The approval follows the company receiving strong government and local stakeholder support during two public hearings in August.

Managing Director Tim Harrison said this “vote of confidence” approval signified the pivotal role Makuutu will play in the social, economic development and growth of Uganda.

“The project aspires to be a significant contributor over a long period of time in Uganda.

“To employ and train directly from within the local communities, source from local businesses and create further improved services, leading to an overall improved quality of life across the districts that host the project.

“Our vision is that Makuutu will provide global customers with an alternative supply of magnet and heavy rare earth elements needed for a Net-Zero Carbon world for 50 years and beyond.”

The Makuutu Project is being developed by Rwenzori Rare Metals who Ionic owns a 51 per cent interest in. This stake will increase to 60 per cent once a feasibility study is completed to support the mining lease application.

The company expects this will be submitted to the Ugandan government by the end of the moth for the mining lease to be approved in Q1 2023.

Shares in Ionic were up 9.3 per cent, trading at 4.7 cents as of 1:24 pm AEDT.

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