Energy Fuels has gained approval from the Madagascar government to restart its Toliara critical minerals project, located in the southwestern region of the African island nation.
The country’s Council of Ministers, chaired by President Andry Rajoelina, has lifted the suspension imposed in November 2019, which had halted development activities at the site.
The US-based uranium, rare earth elements (REEs), and critical minerals producer acquired the Toliara project last month as part of its purchase of mineral sands producer and developer Base Resources.
Located in southwestern Madagascar, 45km north of the regional town and port of Toliara, the critical minerals project holds a mining permit for the production of titanium and zirconium minerals, including ilmenite, rutile, and zircon.
The lifting of the suspension allows Energy Fuels to resume development and re-establish community and social programmes.
It will also help the company to advance the necessary technical, environmental, and social activities required to secure a positive financial investment decision (FID).
The FID for the Toliara critical minerals project is expected to be achieved in early 2026.
Energy Fuels president and CEO Mark Chalmers said: “The lifting of the suspension by the Malagasy Government is a very significant step in the development of the Toliara rare earths, titanium, and zirconium project.
“The Company can now re-commence development and other technical activities on the ground, which are expected to include the re-establishment of the Company’s social programs, additional mine planning and engineering, expanding the critical mineral resource base, as well as progressing any other legal activities necessary to progress the Toliara Project and achieve a positive financial investment decision.”
In parallel with these activities, Energy Fuels will collaborate with the Madagascar government to finalise fiscal, stability, and operational terms for the critical minerals project.
This includes the addition of rare-earth element production to the existing mining permit, through a memorandum of understanding. It will also encompass an investment agreement and amendments to existing laws.
