Energy Fuels Partners with Madagascar Government to Advance Toliara Critical Mineral Project

Key Milestone for Toliara Titanium, Zirconium, and Rare Earth Elements Development
Energy Fuels Inc. has signed a Memorandum of Understanding (MOU) with the Government of Madagascar to advance the Toliara Project, which is set to produce critical minerals, including titanium, zirconium, and rare earth elements (REE). Located in southwestern Madagascar, the Toliara Project aims to support the growing global demand for these essential materials. This agreement marks a significant step forward in the development of one of the most promising critical mineral projects worldwide.

Toliara Project Resumes Following Suspension
The MOU follows the lifting of a suspension on the Toliara Project by the Madagascar Council of Ministers in November 2024, which had been in place since 2019. The suspension had delayed the project, but with this new development, Energy Fuels can resume key activities, including re-establishing community programs and advancing the steps necessary to achieve a Final Investment Decision (FID). The company expects to make this decision in approximately 14 months.

Financial Commitments and Community Investment
Under the terms of the MOU, Energy Fuels has committed to paying a 5% royalty on mining revenues. In addition, the company has pledged $80 million in community and social investments, which will be paid in stages: $30 million upon project certification, $10 million following a positive FID, and $40 million by the fourth year of operation. The company also committed to making at least $1 million in community investments before the FID, with $4 million annually thereafter.

Environmental and Social Responsibility: A Core Focus
Energy Fuels has emphasized its commitment to environmentally and socially responsible mining practices. The company plans to operate the Toliara Project in a way that respects human rights, local cultures, and the environment. By prioritizing sustainable development, Energy Fuels aims to create long-term value for the surrounding communities and for Madagascar as a whole.

Support from the Malagasy Government
The MOU outlines significant support from the Government of Madagascar, including assistance with obtaining necessary permits, ensuring fiscal and legal stability for the project, and providing active public support for its development. The government will also consult with stakeholders to ensure the project’s financial and legal terms are favorable, supporting the project’s long-term viability and the company’s ability to secure the necessary funding.

Conditions for Progressing the Project
The advancement of the Toliara Project under the terms of the MOU is contingent upon several key conditions. These include the adoption of a Stability Mechanism, the achievement of Project Certification, and the assurance that no adverse legal changes occur in Madagascar that would affect the project. If these conditions are not met, it could delay or impact the project’s progress.