The government of Madagascar has officially lifted the suspension on the Toliara critical minerals project, ending a nearly five-year hold on development activities. This significant move follows the recent acquisition of Base Resources by the US-based mining company Energy Fuels, which now controls the project.
The Toliara project, located in the southwest of Madagascar, is home to substantial deposits of rare earth elements (REE), titanium, and zirconium, all of which are crucial to global industries, particularly in the fields of electronics, energy, and manufacturing. With the suspension now lifted, Energy Fuels is poised to resume critical development activities, including mine planning, engineering, and the expansion of its resource base. The company also intends to reinstate community outreach and social programs that had been paused during the suspension period.
Mark Chalmers, President and CEO of Energy Fuels, expressed optimism about the project’s future, describing it as a “generational” opportunity. “Having closely evaluated mining projects worldwide over my 45-year career, I believe the Toliara project has the potential to provide the US and the global market with large quantities of critical minerals, including REEs, for many decades,” Chalmers said. The company plans to process these rare earths at its existing facilities in the United States.
Energy Fuels has outlined its target for a financial investment decision (FID) by early 2026, marking the next key step in advancing the Toliara project toward full-scale production. The project holds a mining permit that currently allows the extraction of titanium and zirconium minerals such as ilmenite, rutile, and zircon. The suspension of operations in 2019 had been a result of negotiations over fiscal terms and other regulatory conditions, which are now being finalized.
The company will continue its discussions with the Madagascan government to formalize the fiscal and stability agreements needed to move forward with the project, including the integration of REE production into the existing mining permit. These agreements will be formalized through a memorandum of understanding, investment agreements, and potential amendments to existing laws.
The Toliara project, with an expected mine life of 38 years, is forecast to produce an annual average of 960,000 tons of ilmenite, 66,000 tons of zircon, and 8,000 tons of rutile. The first phase of the project will require an initial capital investment of $520 million to establish a 13-million-tonne-per-year processing plant. The second phase, which aims to expand capacity to 25 million tonnes annually, will require an additional $137 million in investment.
Energy Fuels’ decision to advance the Toliara project is expected to play a pivotal role in meeting the growing global demand for critical minerals, positioning Madagascar as a key player in the supply chain for these vital resources.
