Dual-listed Energy Fuels has signed a memorandum of understanding (MoU) with the government of Madagascar to advance the Toliara titanium, zirconium, and rare earth elements (REE) project in southwestern Madagascar.

This follows the Madagascar Council of Ministers’ decision on November 28 to lift the suspension on the project, originally imposed in 2019.

The lifting of the suspension enables Energy Fuels to resume development activities, re-establish community programmes, and pursue the work necessary for a final investment decision (FID), which is expected in about 14 months.

The MoU outlines key terms agreed upon after years of negotiations and establishes a framework for the stability mechanism required to formalise the project’s financial and legal terms. Options under discussion include legislative approval of an investment agreement, amendments to Madagascar’s large-scale investment regime, or other measures to ensure stability and bankability.

Energy Fuelds CEO Mark Chalmers said the Toliara project is a “generational” critical minerals venture with potential to operate well beyond current lifetimes.

“It is vital to Energy Fuels, and to our Base Resources subsidiaries, that the Republic of Madagascar and the communities in the vicinity of the project enjoy significant benefits that go beyond jobs, economic development, and sustainable operations that respect human rights, local culture, and the environment,” Chalmers said.

He added that the MoU establishes a framework for a mutually beneficial, long-term partnership between Energy Fuels and Madagascar, calling the project "the largest US investment in the country’s history".

Under the MoU, Energy Fuels has agreed to pay a 5% royalty on mining products and deliver $80-million in development, community, and social project funding after project certification. This includes $30 million within 30 days of certification, $10-million within 30 days of achieving a positive FID, and $40-million by the fourth year of operations. Further, Energy Fuels will invest at least $1-million in community programmes in the Atsimo Andrefana region prior to the FID and $4-million a year from the start of construction, indexed at 2% a year.

The Malagasy government has committed to assisting Energy Fuels in obtaining necessary permits, ensuring fiscal and legal stability for the project, and providing public support for its development. The government also agreed not to take any direct or indirect economic interest in the project or its assets.

Energy Fuels is updating feasibility studies to reflect current economic conditions, with the Toliara project set to become a cornerstone in its portfolio of uranium, REE, and critical mineral assets. The company remains focused on advancing this multi-billion-dollar venture in an environmentally and socially responsible manner, ensuring substantial benefits for Madagascar and its stakeholders.