Energy Fuels Gains Approval to Restart Toliara Critical Minerals Project in Madagascar

Suspension Lifted, Paving the Way for Resumption of Development Activities and Expansion
Energy Fuels, a prominent player in the production of uranium, rare earth elements (REEs), and critical minerals, has received approval from the Madagascar government to restart its Toliara critical minerals project. The Council of Ministers, chaired by President Andry Rajoelina, lifted the suspension that had been imposed on the project in November 2019. This decision follows Energy Fuels’ acquisition of the Toliara project in October 2024 as part of its purchase of mineral sands producer Base Resources.

Project Overview and Significance
Key Mineral Production for Global Industries
Located in southwestern Madagascar, 45 kilometers north of the town and port of Toliara, the Toliara project holds a mining permit to produce key titanium and zirconium minerals, including ilmenite, rutile, and zircon. These minerals are integral to industries such as aerospace, automotive, electronics, and construction. The resumption of development activities is expected to provide a significant boost to the global supply of these critical materials. Additionally, Energy Fuels plans to expand the project to include the production of rare earth elements (REEs), further enhancing its strategic value.

Steps Toward Development and Final Investment Decision
Energy Fuels to Resume Social, Technical, and Environmental Programs
With the lifting of the suspension, Energy Fuels is now set to re-initiate development work on the Toliara site. This includes re-establishing the company’s community and social programs, conducting further mine planning, advancing engineering work, and expanding the project’s critical mineral resource base. The company will also move forward with technical and environmental assessments necessary to finalize a positive financial investment decision (FID). The FID is expected to be achieved by early 2026, positioning the Toliara project as a key player in the global supply chain of critical minerals.

Collaborating with the Malagasy Government for Future Expansion
Fiscal and Legal Agreements to Support Long-Term Operations
Energy Fuels will continue working closely with the Malagasy government to finalize crucial agreements surrounding the Toliara project, including fiscal terms, operational stability, and amendments to existing laws. This includes a memorandum of understanding to expand the project’s mining permit to include the production of rare earth elements, a move that will significantly enhance the project’s value and market potential. Energy Fuels will also negotiate an investment agreement to ensure the project remains financially viable and attractive to stakeholders.

Company CEO’s Statement
Energy Fuels Confident in Toliara Project’s Future
Mark Chalmers, president and CEO of Energy Fuels, expressed optimism following the government’s decision to lift the suspension. He highlighted that the company is now in a strong position to advance development activities on the ground, including community engagement, mine planning, and technical work, all of which will pave the way for a positive FID and the long-term success of the Toliara project.