Energy Fuels, a leading company in uranium and rare earth element production, has secured approval from the Madagascar government to resume its Toliara critical minerals project. This decision follows the government’s lifting of the suspension imposed on the project in November 2019. The company had acquired the Toliara project in October 2024 through its purchase of Base Resources, a mineral sands producer. The restart of this significant project marks an important step in global critical minerals supply.
Project Overview and Strategic Significance
The Toliara project is situated in southwestern Madagascar, around 45 kilometers north of the town and port of Toliara. It holds a mining permit for key titanium and zirconium minerals, including ilmenite, rutile, and zircon. These minerals are crucial to industries such as aerospace, automotive, electronics, and construction. With the project’s development now set to resume, Energy Fuels aims to significantly contribute to global mineral supply. Additionally, the company plans to expand its focus to include the production of rare earth elements (REEs), further boosting the project’s strategic value.
Steps Toward Development and Expansion
With the suspension lifted, Energy Fuels will reinitiate its development activities at Toliara. The company plans to re-establish community and social programs, continue mine planning, and advance engineering efforts. Furthermore, technical and environmental assessments will be conducted to help secure a positive financial investment decision (FID) by early 2026. This FID will solidify the Toliara project as a critical player in the global supply chain of vital minerals.
Collaboration with Malagasy Government for Future Expansion
Energy Fuels continues its close collaboration with the Malagasy government to finalize essential agreements for the Toliara project. These agreements include fiscal terms, operational stability, and adjustments to existing laws. The company is also working on a memorandum of understanding (MoU) to expand its mining permit to include rare earth elements production. This expansion will elevate the project’s value and market potential. Additionally, Energy Fuels is negotiating an investment agreement to ensure the project’s long-term financial sustainability.
CEO’s Optimistic Outlook for the Toliara Project
Mark Chalmers, president and CEO of Energy Fuels, expressed confidence in the Toliara project’s future following the government’s decision to lift the suspension. He emphasized that the company is now well-positioned to advance development activities, including community engagement, mine planning, and technical work. These efforts will be vital for securing the FID and ensuring the long-term success of the project.
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