Uganda Grants Mining License for Prominent Makutu Rare Earth Project
Ionic Rare Earths has secured a mining license from the Ugandan government for the Makutu rare earth project, poised for a final investment decision later this year. Assuming successful construction, the venture is anticipated to commence production by 2026.
Situated 40 kilometers east of Jinja and 120 kilometers from Kampala, the Makutu project spans six licenses and is touted as one of the largest ionic rare earth endeavors globally. It aims to supply critical materials to the rare earth markets across Europe, the United States, and Asia.
The project’s significant concentration of heavy rare earth elements will be extracted through established mining techniques. Ionic Technologies International, a subsidiary acquired in 2022, claims that their new separation and recovery process for these elements will aid in additional recovery. The company’s pilot plant in Makutu is set to produce its first mixed carbonate rare earth product soon, intended for evaluation by potential clients and financiers.
A recent agreement increased Ionic Rare Earths’ ownership in Makutu to 94%, emphasizing the project’s exploration potential and vast resources estimated at 532 million tons of ionic rare earth ore.
A comprehensive study has outlined a 35-year lifespan for the mine, forecasting the production of high-demand rare earth and heavy rare earth carbonate products. With a required investment of $120.8 million, the project promises an after-tax net present value of around $406 million and an impressive internal rate of return of 32.7%.
Adani Group Set to Kickstart Copper Production in Gujarat by March 2024
Adani Group is gearing up to initiate the first phase of its copper manufacturing operations by the end of March at its Mundra facility in Gujarat, as reported by PTI. This $1.2 billion investment marks the establishment of India’s largest single-location copper plant, aiming to significantly reduce the country’s reliance on copper imports and support the transition to sustainable energy. The facility is expected to reach its full production capacity of 1 million tonnes annually by the financial year ending in March 2029.
Kutch Copper Ltd (KCL), a subsidiary of Adani Enterprises Ltd (AEL), is behind this greenfield copper refinery project. It plans to roll out refined copper in two phases, with an initial capacity of 0.5 million tonnes per annum. The project achieved financial closure through a syndicated club loan in June 2022.
Sources close to the development shared with PTI, “Adani aspires to dominate the global copper industry, capitalizing on its robust foothold in resources trading, logistics, renewable power, and infrastructure sectors.” The conglomerate’s ambitious vision is to develop the world’s leading copper smelting complex by the year 2030.
Despite a global average copper consumption of 3.2 kg per capita, India’s consumption lags at approximately 0.6 kg. However, with the country’s push towards clean energy, the increasing adoption of electric vehicles, and the growth of related applications, domestic copper demand is projected to double by 2030.
Copper’s critical role in various industries, especially in renewable energy, telecom, and electric vehicles, has highlighted the urgency to bridge the gap between demand and domestic production. India’s dependency on imported copper has surged due to insufficient production capacity and disruptions in domestic supply, leading to a consistent increase in imports over the last five years.
The fiscal year 2023 (April 2022 to March 2023) witnessed India importing a record 181,000 tonnes of copper, with exports dwindling to a mere 30,000 tonnes, the lowest even when compared to the pandemic period. The nation’s copper consumption for FY23 is estimated at 750,000 tonnes, a rise from 612 KT in FY22. This figure is expected to soar to 1.7 million tonnes by 2027, fueled by the burgeoning demand from the green energy sector. 
