The Madagascar Government has lifted the suspension on Energy Fuels’ Toliara critical minerals project.
The lifting of the suspension, which has been in effect since November 2019, enables the company to proceed with the project's development.
Energy Fuels, following its acquisition of Base Resources in October 2024, holds a mining permit for the Toliara Project.
This permit authorises the production of minerals such as ilmenite, rutile and zircon, which are essential for manufacturing titanium and zirconium products.
The Government of Madagascar halted the project's development activities in 2019 to renegotiate fiscal and other relevant terms.
With the suspension lifted, Energy Fuels will resume development, invest in community and social initiatives, and advance the technical, environmental and social processes needed for a financial investment decision (FID), expected in early 2026.
As the Toliara Project advances towards the FID, Energy Fuels remains in collaboration with the Government of Madagascar.
The objective is to formalise fiscal terms and other conditions pertinent to the project. This includes the integration of rare earth element production into the existing mining permit, utilising various agreements, legislative amendments and other suitable mechanisms.
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 recommence development and other technical activities on the ground, which are expected to include the re-establishment of the company's social programmes, 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.
"We look forward to growing our partnership with the Government of Madagascar as we formalise the fiscal and other terms applicable to the project, move forward with development activities and rapidly progress Toliara towards operation for the benefit of our host communities, the nation of Madagascar and our shareholders."
