Makuutu rare earth project drill core material
ASX-listed Ionic Rare Earths has delivered a compelling feasibility study on a commercial rare earth oxide (REO) manufacturing facility in Belfast, in the UK.
Ionic is already producing a continuous supply of REO at a demonstration plant in Belfast.
The study demonstrates strong potential for a profitable and unique UK magnet recycling facility, to fulfil the growing need for rare earth element production outside of China, the company reports.
Some of the key study outcomes include an after-tax net present value of $502-million , an internal rate of return of 43.6% and earnings generation capability of $1.78-billion a year.
Based on throughput of 1 200 t/y, for production of 400 t/y of separated magnet REO over a 20-year asset life, the project has a capital payback period of 2.4 years.
Ionic is now progressing site permitting and front-end engineering design, with a final investment decision expected in the first half of next year. Should the project proceed, construction is planned to be completed late in 2026, with first commercial deliveries taking place early in 2027.
The company expects the facility to create 70 jobs, including at a technical centre where more research on rare earth separation and magnet recycling will occur.
The feasibility study supports Ionic’s application for additional UK government funding through the Automotive Transformation Fund, which is administered by the Advanced Propulsion Centre for automotive manufacturing and supply chains.
Ionic previously received grant funding from the UK government totalling £5-million.
The company also intends to use the feasibility study to progress more feedstock and offtake agreements,
“With more than 50% of global production of neodymium magnets having been consumed for decades in the West, a sizeable inventory of material is available for recycle back into new supply chains,” the company states.
Ionic also owns the Makuutu rare earth project, in Uganda. 