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Ionic is preparing a feasibility
study for Makuutu, due for
release this quarter

licence application immediately afterwards. A positive experience will necessarily remaining 40%. Harrison said the question
“The plan is to have the feasibility study include a lasting environmental and social of ownership would be resolved ahead of
completed in October with mining licence legacy, a fact Harrison is well aware of. financing.
application and get that out as soon as pos- “Like everyone in the minerals space, a Financing discussions may also incor-
sible,” he said. “Engineering is progressing solid ESG framework it is an absolute im- porate Ionic’s downstream ambitions. A
well, although we have had delays with the perative for Ionic,” he said. “We are work- scoping study is being undertaken on refin-
metallurgy caused by challenges with pro- ing hard to ensure the development is ing options for Makuutu with a decision to
fessional resources in Western Australia. If undertaken with high levels of community proceed expected later this year.
we meet that timeline, we will likely make a engagement and social responsibility. We “We have received a lot of interest in
final investment decision in Q2 2023 after have focused on the carbon footprint re- the project and where we place it,” Har-
approval of the mining licence in Q1.” duction through the use of hydro power rison said. “We will assess those options
The approvals process looms as the and have engaged Minviro to start a life- although it is too early to say whether we
critical path for Makuutu given it represents cycle analysis of the project. Rehabilita- release the scoping study or take more time
Uganda’s first ever commercial scale min- tion will consider longer term employment to release it with the location study that we
ing development. Despite the immaturity of programmes and we have established an are conducting in parallel.”
the country’s industry, Harrison is confident advisory committee to coordinate commu- The third element of Ionic’s rare earths
in the process. nity development investment priorities with strategy is a magnet recycling arm, devel-
“At the moment we are working through a key focus being health and education.” oped through its acquisition of Seren Tech-
committee meetings and hearings on the The project’s ESG credentials will be nologies Ltd in December last year.
EIS and while there have been delays in critical to securing funding for the project. The Seren technology gives Ionic access
Uganda, it will likely be completed by the “The way we will mine and rehab this to technology with an ability to chemically
end of August,” he said. “We are working project will make it a unique proposition for separate the magnet material and refine
closely with the community on land access the investment community,” Harrison said. it back to pure rare earths oxides. Previ-
and are engaged with local and national “The opportunity to invest in a high-ESG ous pilot plant studies have proven the
government on all issues. We are confident manner is a big attraction.” flowsheet with Ionic now testing material
of having an operating asset by 2024.” With the widespread interest in Makuutu, at an optimised pilot plant facility in Belfast,
If successful, Makuutu would become Ionic is keeping its options open – and its Northern Ireland.
a model for Uganda’s development plans preferences close to its chest – before an- Harrison said the magnet space was ripe
which has led to strong government back- nouncing any details on project financing. for recycling opportunities.
ing. “We are certainly looking at what we “We are looking at sourcing magnets
“There is a positive groundswell to dem- need to do to finance the project but it is and working with current supply chains to
onstrate that Uganda is open for business,” too early to commit to anything publicly,” put recycled rare earths back into the sup-
Harrison said. “We have very good support Harrison said. “We are assessing options, ply chains in the UK, EU and other jurisdic-
from the Ministry for Energy and Minerals engaging with banks and other key inputs. tions,” he said. “China has a monopoly on
for this project and have recently hosted There are a lot of options because it is rela- magnet recycling and our investigations
the Deputy Prime Minister, the Minister for tively low capex versus other rare earths have found a tremendous amount of mate-
Energy and Minerals and the office of the projects which opens the door to so many rial globally finds its way back into Chinese
President. different players.” supply. We see opportunity to work with the
“The country is underexplored, and the Funding discussions will also involve ad- Western supply chain partners to develop
Government wants international investors dressing the current ownership structure. domestic recycling capacity for local supply
to come in and develop the mineral wealth Ionic currently holds 51% of Makuutu and chains.”
of the country. A positive experience with will earn 60% on completion of the feasibil- – Dominic Piper
Makutuu will be very positive for Uganda.” ity study with a pre-emptive option over the

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