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ASX listed Ionic Rare Earths has launched a strategic review of its Makuutu heavy rare earths project in Uganda, held through its 60% owned subsidiary Rwenzori Rare Metals, amid strong inbound interest and a broader Western search for independent sources of medium and heavy rare earths supply. The review will evaluate opportunities to enhance value creation and accelerate development at Makuutu, considering strategic, structural and funding alternatives including strategic or government backed partners, new investment structures or listings in alternative jurisdictions.
Ionic Managing Director Tim Harrison described Makuutu as an increasingly strategic asset. “The Makuutu project is an increasingly strategic shovel ready magnet and heavy rare earth rich resource that can provide molecules to deliver a long term, sustainable supply of magnet and heavy rare earths to Western markets. There has been growing interest in Makuutu as currently one of the most advanced ionic adsorption clay projects globally with products not committed to China,” said Harrison. The project’s importance has grown further with China’s restrictions on magnet and heavy rare earth exports, given Makuutu’s product basket is 45% heavy rare earths, with additional Chinese export restrictions due from November.
Harrison added, “As our recycling and refining operations advance and become the core focus of the business and following discussions with various potential project partners, including in the US, it is appropriate that we assess the optimal structure to maximise Makuutu’s value for Ionic shareholders and position the asset within a broader global rare earths ecosystem.” Ionic has held discussions with potential partners including in the United States, centred on building secure and sustainable rare earth supply chains for the world’s largest economy. He also said the company has spent significant time over the past year engaging US stakeholders, building industry partnerships and fostering relationships “from Washington to Detroit”.
Given the impetus from the Trump administration, he added, there has never been a better time to explore Makuutu’s position within US rare earth supply chains, with a January 2027 deadline approaching alongside further export restrictions. Ionic Chairperson Brett Lynch said the review reflects the company’s determination to extract value from an asset it has invested heavily in. He concluded, “While Ionic’s focus is on building a global industrial business based on magnet recycling, the Company has invested significantly in Makuutu and we are determined to unlock value for shareholders from this project, which is a hugely strategic asset in the race to build secure and sustainable Western rare earths supply chains.”
