Madagascar ends suspension on Energy Fuels’ Toliara minerals project

In a move poised to reshape Madagascar’s mining landscape, the country’s government has officially lifted the five-year suspension on Energy Fuels Inc.’s Toliara critical minerals project. The decision, announced by the Council of Ministers and led by the President of Madagascar, allows the U.S.-based company to resume developing its flagship project, which is rich in titanium, zirconium, and rare earth elements.

Energy Fuels, recognised as a global leader in critical minerals production, acquired the Toliara Project in October 2024 after purchasing Base Resources, an African mining operator. This development opens new doors for the company to contribute significantly to the global demand for minerals critical to clean energy technologies and advanced manufacturing.

A generational opportunity for critical minerals

Mark S. Chalmers, Chief Executive Officer of Energy Fuels, expressed optimism about the project’s potential. He described the Toliara venture as a once-in-a-lifetime opportunity to deliver rare earth elements and heavy minerals for decades. Chalmers suggested that the project could become a cornerstone for Madagascar’s economy and a benchmark for sustainable mining practices across Africa.

The Toliara site will initially focus on titanium and zirconium production but is expected to include rare earth elements over time. These minerals are vital to a range of industries, from renewable energy to defence, making the project a significant step in reducing global supply chain vulnerabilities.

Energy Fuels intends to leverage the expertise of Base Resources, which has successfully operated the Kwale mineral sands project in Kenya for over a decade. This operational experience will help ensure that Toliara adheres to global best practices in mining and sustainability.

Path to production

The lifting of the suspension marks the start of a critical phase for Energy Fuels. The company will re-establish community programs and resume technical and environmental studies, which are crucial for securing a final investment decision by early 2026. Negotiations with the government will also focus on formalising fiscal terms, stability agreements, and the addition of rare earth elements to the mining permit.

Chalmers highlighted the importance of a collaborative approach, noting that the company is committed to working closely with local communities and government officials to ensure mutual benefits. The project is expected to generate significant economic value for Madagascar, including job creation, infrastructure development, and contributions to the national economy.

Global implications for rare earth supply

The resumption of the Toliara Project aligns with Energy Fuels’ broader strategy to dominate the critical minerals market. The company operates the White Mesa Mill in Utah, the only licensed conventional uranium mill in the United States, which has also been repurposed for advanced rare earth element processing.

With critical minerals becoming increasingly important for the global energy transition, Toliara’s development is expected to bolster Energy Fuels’ position as a leader in this domain. The project complements the company’s other ventures in Kenya, Brazil, and Australia, reinforcing its diversified portfolio of mineral assets.

Future outlook

As Madagascar moves toward becoming a key player in the critical minerals supply chain, the Toliara Project serves as a symbol of progress and collaboration. By prioritising sustainable practices and fostering partnerships with local stakeholders, Energy Fuels aims to create long-term value for both the global market and the people of Madagascar.