Ionic Rare Earths Limited (ASX: IXR) has reported the successful completion of ESIA public hearings in Uganda with over 3,800 registered attendees demonstrating strong Governmental and local stakeholder support for the Makuutu Rare Earths Project.
Makuutu is operated by Rwenzori Rare Metals Limited (RRM), a Ugandan company which is 51% owned by Ionic presently, with the company moving to 60% ownership on the completion of the Feasibility Study expected to be submitted to the Ugandan government at the end of October 2022.
Environmental and Social Impact Assessment (ESIA) Progress
The detailed ESIA report was submitted to NEMA (National Environmental Management Authority) in December 2021. After a review by government stakeholders and respective authority, a public disclosure process was initiated in May 2022 with stakeholders providing feedback on the ESIA to NEMA.
Two public hearings were completed in early August 2022 in Bugweri and Mayuge Districts with significant turnout from NEMA, Ministry of Energy and Mineral Development (MEMD), government representatives, district leadership, local communities and stakeholders providing strong support for the Project.
The total registered attendees at the hearings over the two days amounted to 3,800 persons which indicates a keen interest in the Project by the Ugandan community. NEMA and MEMD are now working to complete final statutory requirements to evaluate the ESIA and provide a formal decision.
Resettlement Action Plan (RAP) Progress
The process of developing the RAP commenced in January 2022 and has progressed with final studies due to be completed by the end of October 2022. The Resettlement Action Plan (RAP) will present the strategy to acquire land for the entire RL1693 over the life of the Project while ensuring that Project Affected Persons (PAPs), including vulnerable people, are not financially or socially disadvantaged.
As of now, a process of stakeholder identification and engagement is in advanced stages of concluding the RAP development process. This process involves engaging directly affected PAPs, key village, sub county and district stakeholders throughout the three districts of Bugweri, Mayuge and Bugiri, plus national stakeholders. All PAPs have been identified and the majority of their parcels of land mapped.
Once the ESIA has been approved by NEMA and the MEMD, the Project will undertake a due diligence process of confirming the areas mapped as well as entering into MOU’s with PAPs to support land access. The RAP studies are being finalised to support the MLA process.
Key Stakeholder Engagement
Over the past two months, RRM has hosted key delegations from the Ugandan Parliament and Ministry in an ongoing show of support for Makuutu.
The Minister for Energy and Mineral Development, Rt. Hon. Ruth Nankabirwa Ssentamu with her delegation invited stakeholders including Project Area Members of Parliament, the District and sub- county leadership of Bugweri, Mayuge, Bugiri and Iganga Districts, media fraternity, NonGovernment Organisations, the Busoga Kingdom and Chiefdoms and communities.
The engagements were initiated with the objective of demonstrating the position of the MEMD in support of the Project. The support provided by MEMD through the visit affirmed the legal and procedural compliance of RRM in all its Project activities and emphasised the importance of the Makuutu Rare Earth Project, with a focus on the social benefits to the Busoga region and the government.
In conclusion, Hon. Nankabirwa confirmed that the Project will be implemented following national laws, regulations and best practices to progressively develop the Busoga region through employment opportunities, enhancement of services (roads, power, health and education facilities), thus increasing household incomes of the communities, and promoting socio-economic development.
Geological Mapping of EL 00147 and EL00257
RRM has completed geological mapping of its two exploration licenses, EL00147 in Kapyanga subcounty of the Bugiri district, and EL00257 in both Bulamagi and Nakigo sub-counties of the Iganga district. The overall objective of the activity was to establish areas which have potential to contain clays with ionic adsorbed REE.
Once identified, such areas could be the focus of future exploration programs. During the field exploration activity, community engagement and sensitisation was conducted to ensure correct information is disseminated across the affected communities with regards to the overall activity planned and potential timeframes for the development of Makuutu.
Environmental Impact Statements (EIS) for both EL00147 and EL00257 are being finalised for approval to commence the Phase 5 drilling programs. The EIS documents are expected to be shortly submitted to NEMA and the DGSM with expectation to commence the drill programme in Q4 2022.
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