Ionic Rare Earths Limited (ASX: IXR) has confirmed that Uganda’s National Environmental Management Authority (NEMA) has approved the Environmental and Social Impact Assessment (ESIA) for the Makuutu Rare Earth Project.
Makuutu is being developed by Rwenzori Rare Metals Limited (RRM), a Ugandan private company which owns 100% of the Makuutu Project. IonicRE is a 51% owner of RRM, moving to 60% ownership on the completion of a Feasibility Study supporting the Mining Lease Application expected to be submitted to the Ugandan government at the end of October 2022.
In recognition of the flagship nature of the Project and its significance to the country’s development outlook as enshrined in Uganda’s National Development Plan NDP-III, the certificate was awarded at a ceremony held yesterday in Kampala at NEMA’s headquarters.
“I wish to start by thanking all Ugandan Government Ministers and officials for their support of the Makuutu Project and NEMA for their engagement, review, and approval of the ESIA,” IonicRE Managing Director, Tim Harrison, said.
“This is a significant milestone and vote of confidence by the Government and community groups – signifying the pivotal role Makuutu will play in the social, economic development and growth of Uganda.
“I would also like to convey my gratitude to the local stakeholder communities for embracing the Makuutu Project. The Project aspires to be a significant contributor over a long period of time in Uganda.
“To employ and train directly from within the local communities, source from local businesses and create further improved services, leading to an overall improved quality of life across the districts that host the Project.
“My congratulations and thanks extend to the expanding Rwenzori team on the ground at Makuutu, who have worked tirelessly to engage and listen to the needs of local community groups, Kingdom representatives, members of the Bugweri, Mayuge and Bugiri districts and Ugandan Government officials.”
“This Project will set its sights on becoming Uganda’s flagship sustainable mine. Our vision is that Makuutu will provide global customers with an alternative supply of magnet and heavy rare earth elements needed for a Net-Zero Carbon world for 50 years and beyond.”
ESIA Submission
The detailed ESIA report was submitted to NEMA (National Environmental Management Authority) in December 2021. After a review by government stakeholders and respective authorities, a public disclosure process was initiated in May 2022 with stakeholders providing feedback on the ESIA to NEMA.
Following this, two public hearings were held 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.
Over the past few 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, non-Government Organisations, the Busoga Kingdom and Chiefdoms and communities to meet with and engage with the local communities.
Strong partnerships build sustainable social development programmes
Social benefits continue to accelerate across the local communities in the Bugweri, Mayuge and Bugiri districts. These programs have delivered employment, support programs and improved social services in one of the poorest parts of Africa.
Some of the improvement’s local stakeholders have benefitted from to date include:
• Renovation of the Natural Resource Office Block at Bugweri District;
• Renovation of the Buwaaya police station;
• Due to poor drinking water quality, serviced 17 community boreholes across the Project area;
• Donated 86 tree seedlings to Mayuge District in commemoration of the water and
environment week; and
• Donated footballs to Makuutu primary schools in support of youth sports.
Resettlement Action Plan (RAP) Progress
The process of developing the Resettlement Action Plan (RAP) commenced in January 2022 and has progressed with additional studies to continue in parallel to the Mining Lease application. The RAP will present the strategy to acquire land for the entire Retention Licence (RL) 1693 (focus of the initial Mining Lease application) over the life of the Project while ensuring that Project Affected Persons (PAPs), including vulnerable people, are not financially or socially disadvantaged.
Presently, 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. Now 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 Memorandums of Understanding (MOU’s) with PAPs to support land access.
Mining Lease Application (MLA)
The MLA will focus on the Makuutu Central Zone (MCZ), located within RL 1693, and will provide the basis for initial mining at Makuutu. This area contains an Indicated Resource of 259 million tonnes at 740 ppm TREO-CeO2 (Table 2 and ASX: 3 May 2002). Advice received indicates that with an initial focus on this 44km2 licence the Company will be able to accelerate development as opposed to an MLA over the total Makuutu Project area of approximately 300km2 where mining in some areas would not take place for well over 20 years in the future.
Pending the award of the MLA, expected Q1 2023, the Company, via RRM, will be working with Ugandan authorities on a Mineral Development Agreement (MDA) which will establish the fiscal terms for the mine development in Uganda.
For further information please visit: https://ionicre.com.au/
