Energy Fuels Receives Approval for Toliara Project Development

Madagascar's Approval for Energy Fuels' Toliara Project

Energy Fuels Inc. is thrilled to announce the recent decision made by the Madagascar Council of Ministers. The government has officially lifted the suspension on the Company's Toliara critical minerals project, paving the way for development to continue. This project focuses on titanium, zirconium, and rare earth elements, which are essential for various high-tech applications.

Significance of the Lifted Suspension

Prior to this decision, the Toliara Project faced a suspension imposed in 2019, as negotiations about the project's terms were underway. Now, with the suspension lifted, Energy Fuels can renew its commitment to advancing this crucial project. Mark S. Chalmers, the President and CEO of Energy Fuels, emphasized the importance of this green light, describing it as a crucial step towards restoring the project and enhancing its community initiatives.

Future Prospects for the Toliara Project

The Toliara Project already holds a valid mining permit, authorizing the extraction of valuable minerals, particularly ilmenite, rutile, and zircon. As the Company prepares to resume its developmental activities, it aims to enhance the economic prospects for both itself and the local communities.

Moreover, Energy Fuels plans to re-establish and expand its community and social programs while also refining mine planning and engineering processes. The aim is to broaden the critical mineral resource base, ensuring that the project's potential is fully realized.

Importance of Critical Minerals

In the context of global demand for critical minerals, projects like Toliara are vital. The U.S. and other countries are actively seeking sustainable sources for minerals that are not only used in energy solutions but also play a role in various sectors, including technology and health. Energy Fuels views the Toliara Project as a generational opportunity to meet these demands while promoting sustainable mining practices.

A Strategic Acquisition

In October 2024, Energy Fuels made a strategic acquisition of Base Resources, which includes the Toliara Project. This acquisition provides Energy Fuels with an excellent leadership team that brings years of operational experience in the critical minerals space.

Chalmers highlighted this project as a potential 'crown jewel' for Madagascar, indicating that its successful development can significantly contribute to the nation's economy. It is positioned as a leader in the global clean energy transition, showcasing effective mining practices that have been successfully implemented in locations like Kenya.

Partnership with the Madagascar Government

Energy Fuels is eager to strengthen its partnership with the government of Madagascar as they move forward with the Toliara Project. This collaboration will involve defining key fiscal terms and conditions that will facilitate smooth operations for all stakeholders involved. There is a comprehensive plan to include rare-earth element production within the current mining permit, ensuring that the project remains competitive and relevant in the rapidly evolving minerals market.

About Energy Fuels

Energy Fuels Inc. is a leader in the U.S. critical minerals industry, primarily focusing on uranium, rare earth elements (REEs), and other heavy minerals. It has established itself as a key player in the production of natural uranium concentrate used for carbon-free nuclear energy. With operations in the western United States and a commitment to environmental stewardship, Energy Fuels aims to lead in providing essential minerals for various industries.

Currently, the Company is exploring three additional heavy mineral sands projects alongside the Toliara Project: the Bahia Project in Brazil, and the Donald Project in Australia, which highlights its expansive vision for growth and sustainability.

Frequently Asked Questions

What is the Toliara Project?

The Toliara Project is a critical minerals project in Madagascar that focuses on extracting titanium, zirconium, and rare earth elements.

Why was the Toliara Project suspended?

The project was suspended in 2019 to negotiate fiscal and other related terms with the government of Madagascar.

What are the next steps for Energy Fuels after the suspension lift?

Energy Fuels plans to resume development, re-establish community programs, and advance technical activities for the Toliara Project.

How does the Toliara Project help the local economy?

The project aims to create jobs, develop community programs, and provide a sustainable economic boost for Madagascar.

What other projects is Energy Fuels involved in?

Energy Fuels is involved in multiple projects, including the Bahia and Donald heavy mineral sands projects in Brazil and Australia, respectively.

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