In a momentous triumph for resource exploration, Rwenzori Rare Metals Limited has been granted an opulent 21-year mining license, unlocking the potential of the Makuutu rare earth elements mining project.
The grand event unfolded with the ceremonial exchange of signatures between the illustrious Energy and Minerals Development Minister, Ruth Nankabirwa, and the enterprising CEO of Rwenzori Rare Metals Limited, Warren Tregurtha, on December 28th, 2023.
This gigantic mining license, bestowed under the auspices of the recently enacted Mining and Minerals law of 2022, propels Rwenzori Rare Metals Limited into the annals of history as the inaugural Large Scale Mines licensee.
Minister Nankabirwa, with palpable enthusiasm, proclaimed, “This large-scale mining License award represents the first step in developing one of the world’s heavy rare earth element assets.”
Undoubtedly, the Makuutu project stands as a symbol of economic prosperity for the nation and a beacon of hope for the people of Busoga.
Minister Nankabirwa again emphatically stated, “This project should be supported all 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.”
Envisioned as the inaugural African mine to extract rare earth minerals from clay, the Makuutu project spans several districts in Busoga. The rare earth minerals in question, reportedly comprising 17 globally designated minerals pivotal in the global energy transition debate, hold a paramount position in the mining landscape.
The licensed operational territory by Rwenzori Rare Metals Limited encompasses a sprawling 44 square kilometers, promising a monumental impact on the mining terrain.
Minister Nankabirwa set forth stringent conditions, including the imperative to commence operations within a year from the license award. She underscored the government’s automatic claim of a 15% stake in the project, in accordance with the Mining and Minerals Act 2022.
As the company contemplates the technological frontier, intriguing details emerge about the proposed technology for extracting rare earth elements in Uganda.
Acting Commissioner for Mines, Vincent Kedi, hinted at an innovative ionic desorption process, asserting that the technology is likely to be less sophisticated and environmentally friendly.
Complications, however, surface as reports circulate about Australian company IonicRE contemplating a substantial increase in its shareholding in the Makuutu project. This strategic move could potentially reshape Rwenzori Rare Metals Limited into a minority shareholder.
CEO Warren Tregurtha maintained a discreet stance, declining to comment on these speculative developments.
In a dramatic crescendo, Minister Nankabirwa sternly warned against any premature transfer of the large-scale mining license, emphasizing the prohibition of wielding it for profit.
The colossal Makuutu project, with a total mineral resource estimate towering at an astonishing 532 million tonnes, heralds the dawn of a new era in Uganda’s mining landscape.
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