Makuutu

The Makuutu rare earth project is an ionic adsorption clay deposit about 120 kilometers east of Kampala, Uganda, held through a company in which Ionic Rare Earths (ASX: IXR, or IonicRE) owns 60% (IonicRE 2026 Annual Report; September 2026 quarterly). The product basket in IonicRE's 2023 feasibility study was about 45% medium and heavy rare earth oxides, which the company says could help offset elements targeted by China's export controls (September 2026 quarterly). As of October 2026, the project was under a strategic review, and IonicRE said no decisions had been made (September 2026 quarterly).

How big Makuutu is

IonicRE says the deposit comprises nine licenses covering around 300 square kilometers, with defined mineralization stretching 37 kilometers (IonicRE 2026 Annual Report).

Who owns the Makuutu rare earth project (as of October 2026)

Rwenzori Rare Metals Limited (RRM), a Ugandan private company, owns 100% of Makuutu, and IonicRE owns 60% of RRM (September 2026 quarterly). IonicRE's FY2026 accounts treat RRM as a joint venture because key decisions over RRM's activities require approval from more than 75% of voting rights, and IonicRE holds 60% (IonicRE 2026 Annual Report).

On December 11, 2023, IonicRE announced it had signed a conditional share purchase agreement with Rare Earth Elements Africa to buy another 34% of RRM, which would take its interest to 94% on completion (ASX, December 11, 2023). In September 2024 completion was still subject to conditions precedent, including Ugandan ministerial approval (IonicRE 2024 Annual Report). IonicRE's 2026 annual report still records its interest in RRM at 60% (IonicRE 2026 Annual Report).

An ionic adsorption clay deposit

In ionic clay deposits, the rare earths are mainly held as ions on the surfaces of clay minerals in the weathered regolith (IonicRE DFS release, March 2023). IonicRE compares Makuutu to ionic clay deposits in south China, Myanmar, Madagascar, Chile and Brazil. At Makuutu, the mineralization sits in a tropical lateritic weathering profile formed over sedimentary rocks (ASX, May 15, 2024).

The company says the deposit holds a high share of magnet and heavy rare earths, including neodymium, praseodymium, dysprosium and terbium (IonicRE 2026 Annual Report). IonicRE reports a mineral resource of 617 million metric tons, first published in May 2024 and reaffirmed by the company in October 2026 (ASX, May 15, 2024; September 2026 quarterly). IonicRE also claims Makuutu ranks among the world's largest and most advanced ionic clay deposits (September 2026 quarterly).

What the 2023 feasibility study planned

IonicRE's March 2023 Stage 1 Definitive Feasibility Study (DFS) covered only the central tenement. It proposed an open pit feeding a modular heap desorption plant that would produce a mixed rare earth carbonate (MREC) at 5 million metric tons a year of ore (DFS release). The study estimated pre-production capital of about US$120.8 million and a 35-year mine life (DFS release). In October 2026, IonicRE said the study's production-target assumptions continue to apply and have not materially changed (September 2026 quarterly).

Mining license and demonstration plant (as of October 2026)

Uganda's Minister of Energy and Mineral Development signed large-scale mining license LML00334 over the central tenement on January 17, 2024. IonicRE says it was the first large-scale mining license issued in Uganda under the 2022 Mining Act (ASX, January 18, 2024). The company's tenement table lists the license as granted on December 28, 2023, and expiring on December 27, 2044 (September 2026 quarterly).

In the September 2026 quarter, RRM's tenements did not change. RRM was still progressing a second mining license application, TN04741, over part of a retention license, along with renewal applications for two other tenements (September 2026 quarterly).

IonicRE announced on March 13, 2024, that the Makuutu demonstration plant had produced its first quantities of MREC (ASX, March 13, 2024). In January 2024 IonicRE had targeted a final investment decision later that year and first production in 2026 (ASX, January 18, 2024). REEx described Makuutu in August 2026 as "still a development-stage project" (REEx news).

The strategic review, funding and offtake (as of October 2026)

On July 31, 2026, IonicRE began a strategic review of Makuutu through RRM. The review will consider strategic or government-backed partners, new investment structures and potential listings in other jurisdictions (ASX, July 31, 2026). IonicRE's managing director said the company's recycling and refining operations are becoming the core focus of the business as they advance (ASX, July 31, 2026).

As of October 13, 2026, the company said no decisions had been made and there was no assurance that any transaction or ownership change would result (September 2026 quarterly). In the same report, IonicRE said it will continue discussions with potential project financiers and offtakers (September 2026 quarterly). IonicRE's FY2026 accounts report a material uncertainty that may cast significant doubt on the group's ability to continue as a going concern. IonicRE's directors say additional funding will be required (IonicRE 2026 Annual Report).

Why Makuutu matters for heavy rare earth supply

IonicRE describes Makuutu as a member of the Forum on Resource Geostrategic Engagement (FORGE), formerly the Minerals Security Partnership (ASX, July 31, 2026). REEx wrote in August 2025 that investors should see Makuutu "as a strategic supplement, not an overnight replacement," and that the real risk lies in governance. The article listed permitting and land compensation among the signals to watch (REEx analysis). REEx has also argued that more upstream supply needs industrial policy and midstream and downstream resilience behind it (REEx news).

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