Highlights
- Ionic Rare Earths is rapidly developing the Makuutu project in Uganda in response to China's rare earth export controls.
- The project holds Uganda's first large-scale mining license and contains 45% medium and heavy rare earth elements.
- Ionic aims to become a key Western-aligned source of magnet and heavy rare earth oxides.
- The goal is to reduce global dependency on Chinese processing.
Ionic Rare Earths has accelerated development plans for its Makuutu project in Uganda amid China’s latest export restrictions on critical rare earth elements, including dysprosium, terbium, and scandium. With China producing nearly all of the world’s heavy rare earths, the new controls—imposed in response to U.S. tariffs—underscore the urgency for alternative, non-Chinese supply chains. Makuutu, a shovel-ready ionic clay project with one of the highest concentrations of heavy rare earths globally, is well-positioned to become a key Western-aligned source of magnet and heavy rare earth oxides.
Ionic is actively engaged in financing talks with Mineral Security Partnership (MSP) members and potential off-takers to fast-track the project, which already holds Uganda’s first large-scale mining license under its new Mining Act. With 45% of Makuutu’s rare earth basket comprising medium and heavy REEs and no product committed to China, the project could significantly reduce global dependency on Chinese-controlled processing, according to Mining Weekly (opens in a new tab). “The clays of Makuutu are among the most accessible global sources of heavy rare earth oxides,” said Ionic MD Tim Harrison, as the company works to expand its stake in the asset from 60% to 94%.
Of course, more upstream activity is good, but industrial policy is necessary, as well as midstream and downstream resilience.
We wonder if Ionic will consider separating its recycling project from its mining operations, as Mkango appears to be going to do. Both wannabees’ recycling moves seem to be moving much faster than their mining in terms of partnerships and strategic funding already garnered. Such a move might unlock greater investor interest and shareholder value. GLTA – REI