Ionic Rare Earths Limited (ASX:IXR) has rolled out the first production of mixed rare earth carbonate (MREC) from its Makuutu demonstration plant in Uganda, an achievement which moves the company closer to reaching a Final Investment Decision (FID) later in the year and planned full production in 2026.
As well as hosting magnet and heavy rare earth minerals (REEs), the MREC from Makuutu also contains dysprosium and terbium, both of which are in short supply, and almost entirely produced by China.
IonicRE’s milestone production therefore indicates an alternative future source of these elements, and this – together with the high level of heavy REEs produced by the plant – is expected to boost the company’s status ahead of engagement with key stakeholders and global partners.
Makuutu is owned by Rwenzori Rare Metals Ltd, a Ugandan company in which IconicRE has a 60 percent stake, which it hopes to increase to 94 percent within the first half of 2024.
Managing director Tim Harrison said developments at the plant put Makuutu on the path to being an important alternative source of rare earths.
“The progress achieved over the past nine months from what was previously a sugarcane field, to now be a functioning technical facility producing magnet and heavy rare earths is a testament to the focus, dedication and expertise of our RPM and IonicRE team who made this happen,” he said.
“Achieving this major milestone, safely within such a short timeframe underscores our commitment to developing Makuutu as a disruptor to existing supply chains, providing an alternative, secure, sustainable and traceable source of heavy rare earths for new supply chains to emerge.
“This in combination with our Ionic Technologies Belfast recycling facility, Makuutu is key to us harnessing our technology to accelerate mining, refining and recycling of magnets and heavy rare earths that are critical for the energy transition, advanced manufacturing and defence.”
The speed and strength of the Makuutu project is indicated by the fact that it only received a large-scale mining licence two months ago.
IonicRE is trading at 2c.