Rwenzori Rare Metals Limited has been awarded a lavish 21-year mining license, which will enable it to fully realize the potential of the Makuutu rare earth elements mining project. This is a significant victory for resource exploration.
On December 28, 2023, the momentous occasion began with the formal signing ceremony between the distinguished Energy and Minerals Development Minister, Ruth Nankabirwa, and the ambitious CEO of Rwenzori Rare Metals Limited, Warren Tregurtha.
With this massive mining license, which was granted by the recently passed Mining and Minerals law of 2022, Rwenzori Rare Metals Limited becomes the first-ever licensee of Large Scale Mines, making history.
“This large-scale mining License award represents the first step in developing one of the world’s heavy rare earth element assets,” declared Minister Nankabirwa with obvious delight.
Without a doubt, the Makuutu project represents both national economic growth and optimism for the people of Busoga.
“This project should be supported all the way through because the outcome is going to support the country, it is going to benefit the people of Busoga because they will receive royalties, and they will be able to change their lives,” Minister Nankabirwa declared once more with great emphasis.
The Makuutu project, which covers multiple districts in Busoga, is envisioned as the first mine in Africa to extract rare earth minerals from clay. The rare earth minerals in issue occupy a prominent place in the mining industry. They are purportedly composed of 17 globally defined minerals that are crucial to the global energy transition debate.
Rwenzori Rare Metals Limited’s 44 square kilometer licensed operating area promises to have a significant impact on the mining landscape.
Minister Nankabirwa imposed strict requirements, one of which was that operations must start one year after the license was granted. She emphasized that, under the Mining and Minerals Act of 2022, the government is automatically entitled to a 15% interest in the project.
As the corporation mulls over the cutting edge of technology, fascinating information regarding the planned technology for rare earth element extraction in Uganda comes to light.
Acting Commissioner for Mines Vincent Kedi made a suggestion for a novel ionic desorption method, saying that the technology would probably be less advanced and more ecologically friendly.
But things get complicated when rumors start to spread that Australian corporation IonicRE is thinking of raising its ownership stake in the Makuutu project significantly. This could turn Rwenzori Rare Metals Limited into a minority stakeholder as a result of this strategic action.
CEO Warren Tregurtha refrained from commenting on these speculative events, adopting a quiet attitude.
With a dramatic flourish, Minister Nankabirwa issued a strong warning against the large-scale mining license being transferred too soon and emphasized that it cannot be used for financial advantage.
With a staggering estimated total mineral resource of 532 million tonnes, the massive Makuutu project marks the beginning of a new era in Uganda’s mining industry.
