Ionic Rare Earths aims for Uganda project decision late next year

Ionic Rare Earths

31/10/2023 15:47

KAMPALA, Oct 31 (Reuters) - Australia's Ionic Rare
Earths  IXR.AX  hopes to make a final investment decision by the
second half of next year on its Uganda project and could spend
$120 million to develop it after that decision has been taken,
an executive said on Tuesday.
    The Makuutu Rare Earths Project is Uganda's first commercial
rare earths project, located about 120 kilometres from the
capital Kampala in the east of the country.
    Rare earths are critical to industries like electric
mobility and other new technologies powering the global energy
transition. Western governments are keen to ease their
dependence on China, who dominates production of the minerals.
    "We're looking at probably an investment decision (in)
second half of next year," Tim Harrison, Ionic Rare Earths
managing director, told Reuters in an interview. 
    "If we make an investment decision in the second half of
2024, then we would anticipate first production coming online
late 2025."
    Harrison said the company would consider getting a strategic
partner to raise money for the project.
    Ionic Rare Earths bought 60% equity in the Makuutu project
from Ugandan company Rwenzori Rare Metals in 2019, and Harrison
said it had the potential to produce 5 million tonnes of rare
earths ore per annum.

 (Reporting by Elias Biryabarema; Editing by George Obulutsa,
Alexander Winning and Aurora Ellis)
 ((Email:elias.biryabarema@thomsonreuters.com; Tel. +254 20 499
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