In an exciting development, the United States might be on its way to exceeding global leader China as the top extractor of rare minerals. A recent discovery of a huge cache of minerals has the potential to upset the world economy in a big way.
Rare earth minerals are essential to daily life in the modern world, making devices like computers, smartphones, and hybrid cars possible.
What Was Discovered?
A company called American Rare Earths Inc. recently announced the discovery of a huge cache of rare minerals that is estimated to be more than 2.57 billion tons. (via Daily Mail)
The discovery is reported to be in an area in Wyoming where the company has holdings of over 6,320 acres of land and 367 mining claims.
What Are Rare Earth Minerals?
“Rare earth mineral” is the name for 17 metallic elements on the periodic table. Their name doesn’t come from the fact that they are scarce, but from the history of how difficult they were to find.
Although they are abundant on the earth, they are spread so thin that people need to process tons of ore just to find traces of them.
Why Are These Minerals So Sought After?
Rare earth minerals have unique properties that give them specific applications for developing technology and medical use. The minerals tend to have conductive and magnetic properties that can enhance other elements when combined in a mixture or alloy.
Some are also essential for many forms of energy generation like nuclear, solar, wind, and oil refining. The International Energy Agency speculates that the demand for these minerals is expected to increase between three and seven times by 2040.
China’s Industry Dominance
The nation of China accounts for nearly 95 percent of the earth’s rare mineral processing, and the United States currently imports more than 74 percent of its own supply of essential minerals from it. China also produces nearly 60 percent of the world’s supply of these minerals.
In the past, China has used this position to threaten to withhold exports as a political tool against the United States and other countries. (via Daily Mail)
China’s Ban on Rare Earth Processing Technology
In December of 2023, China surprised the world by announcing a ban on rare earth extraction technology. (via Reuters) It is thought that the motivation for this move is to cripple the United States since they would have to start building up their own technology to process the minerals they previously relied on China for.
The move came on the heels of news that China’s economy is struggling under the weight of recent world events like the pandemic.
The Race Is On
While China intended its latest efforts to control prices and secure its position in the world, a backfire may be possible. China’s ban will definitely hurt countries in the short term. However, as these countries build their own technologies in the coming years, they will invariably break China’s dominance over the industry.
Now, just two months later, the United States has discovered its own supply of rare earth minerals that will boost its ability to compete.
Previous Drilling by American Rare Earths
This is not the first time that American Rare Earths has found caches of rare earth minerals, but it is certainly the largest by far. Their first drilling attempt in 2023 found 1.32 million tons. (via Daily Mail)
The second drilling attempt found 64 percent more minerals, which surprised the CEO of the company. The increased discovery of metals in the subsequent drilling is a good sign that there is huge potential for the mining site.
Just Scratching the Surface
Don Schwartz, CEO of American Rare Earths, issued a statement on the findings, excited about the future prospects of the company’s project.
‘Typically, you’ll see the resource decrease as infill drilling takes place – instead, we’re seeing the opposite, with only 25 percent of the project being drilled to this point,” he said.
Which Rare Earth Minerals Were Discovered?
Several rare earth minerals were discovered at the mining site in Wheatland, Wyoming. These included minerals like samarium, dysprosium, terbium, praseodymium, and neodymium.
The discovery of neodymium is of particular interest for its application in magnets used in smartphones and computer drives. However, all of the minerals discovered have important applications for industrial and commercial products.
Open Mining Will Likely Be Used
The extraction method that American Rare Earths will use is reportedly open pit mining.
This type of extraction is criticized for its negative environmental impact but is common throughout the world for this type of work. It is also the fastest method for getting these minerals, which allows a company to work at a rate of 20,000 tons of rare earth minerals per day.
Another Remarkable Discovery in Wyoming
Previous to the enormous find by American Rare Earths Inc., investor Randall Atkins, also made a significant discovery in Wyoming.
He discovered that the Wyoming Brook coal mine he purchased for $2 million sight-unseen might contain $37 billion worth of ‘rare earth’ minerals, an estimate provided by the Wall Street Journal.
The Journey of Randall Atkins and the Brook Mine
Atkins, the CEO of Ramaco Resources, acquired the Brook Mine in Sheridan in 2011.
The significance of his purchase only became apparent years later when researchers revealed that the ground beneath the mine harbored rare earth elements.
Unveiling a Geological Treasure
The Brook Mine’s land spans 6,000 acres in the Powder River Basin and has tested positive for containing significant amounts of gallium and germanium.
Initial estimates suggest that there could be 1.1 million metric tons of oxides in just a quarter of the plot, according to reports by the Wall Street Journal, vastly exceeding the US average annual consumption.
The Critical Elements Found
This discovery is not just about quantity but also about the variety of rare earth elements present.
The site is also rich in neodymium, praseodymium, dysprosium, and terbium.
The Value of Rare Earth Elements
The rare earth elements extracted from Atkins’ mine are now being sold for more than $1 million per metric ton, the Wall Street Journal reports.
This valuation underscores the extreme rarity and high demand for these materials, which are integral to a wide range of high-tech applications and green energy solutions.
Mining with a Vision for Green Energy
The Daily Mail notes that under the leadership of Kentucky-born Atkins, Ramaco Resources aims to mine these elements and process them for use in green energy technologies.
The focus is on producing materials necessary for electric vehicle motors and offshore wind turbines, aligning the project with broader environmental sustainability goals.
A Legacy of Energy and Innovation
Atkins is motivated by a desire to build on his family’s legacy in the energy sector. The Daily Mail reveals his father, Orin Atkins, once transformed Ashland Oil into a multinational conglomerate.
Atkins hopes to achieve similar success by leveraging the rare earth elements for cutting-edge science and technology advancements.
Attracting the Next Generation
Atkins believes the project resonates particularly with younger people due to its novel approach to combining mining with cutting-edge science and technology.
This venture into rare-earth mining opens new horizons for the community, offering a fresh perspective on the potential of mining operations.
The Broader Impact on the Community
The development of the Brook Mine is seen as more than just a mining operation; it represents an opportunity to bring innovative science and technology to the forefront of the local economy.
Atkins told Wall Street Journal that he envisions the rare-earth deposits as a catalyst for transforming the community by introducing new industries and technologies.
Acquiring the Mine
The acquisition of the Brook Mine from Brink’s, a company exiting the coal business, marked the beginning of what would become a significant venture for Atkins and Ramaco Resources.
This purchase has positioned them at the forefront of a potential revolution in green energy and technology sectors. (via Business Insider)
Environmental Concerns Over Rare Earth Extraction
Critics point out that extracting Rare Earth Elements (REEs) often involves dealing with radioactive materials, leading to intensive purification processes that produce harmful environmental waste.
While the Brook Mine’s deposits promise a less expensive and cleaner extraction method without caustic acids, environmental groups remain skeptical of the impact on air and water quality.
Community Skepticism and Continuous Battles
The Casper Star Tribune reports that the Powder River Basin Resource Council (PRBRC) has long opposed Ramaco’s operations, initially due to coal mining plans. With the shift towards REE mining, concerns persist among residents and environmental advocates.
Critics like Shannon Anderson, PRBRC’s attorney, said “This is a company that’s been looking for a way to make value out of something they bought many years ago, and they just haven’t found the right way to make profit yet. And so here we go — here’s another attempt.”
Is There a Reason for China to be Worried?
If American Rare Earths continues to discover more rare earth minerals, China may have to reconsider its export strategy. While China has the edge in processing technology at the moment, more companies around the world are making strides to overcome their independence and chip away at their global dominance.
The United States, as well as Australia and Canada, are already several years into a plan to scale up their processing and refining efforts.
