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CEO Corner

What We Need Means We Need Mining

As Americans, we are fortunate to live in a society where we generally have access to important technology for medical care, transportation, communication devices, and more. Many Americans would have difficulty conceptualizing a world in which that access does not exist. Would you be willing to wait for years for technological devices like the latest version of your favorite cellphone or an MRI machine due to lack of supply? What about not being able to buy the latest, lightweight tablet or computer but instead going back to one that is bigger and bulkier? These things seem inconvenient, but what if as a nation we could not develop or maintain our defense systems or achieve our carbon reduction goals because we don’t have the materials essential for the necessary high-tech applications, such as fighter jets, electric vehicles and wind turbines? These are all real risks represented by China’s dominance of the rare earth (RE) supply chain. With over 85% of the refined REs and 90% of the downstream products being produced in China in 2022, there are currently no alternative sources available today that are secure and mined with sound environmental practices.

In order to remain a strong nation, the United States has to embrace mining of not only REs but other critical minerals. Where else are the elements essential to our modern lifestyle going to come from on a consistent and reliable basis? Also why shift our environmental burdens elsewhere when we have arguably the most protective regulatory oversight of any nation? Wait – before you say, “anywhere else,” let us talk about the risks that poses to our economic and national security and the world as a whole.

There is an old saying that “if you can’t grow it, you have to mine it.” Let us start by agreeing that modern life depends on mining. Your mobile phone, computer, appliances, and car are smaller and more efficient because of REs’ special properties. Then let us talk about our forefathers. They understood that a strong nation was dependent on mining, and they developed land management policies that included the right to develop mineral assets found on public lands. These policies have not been taken lightly. Knowing proper oversight was necessary to develop mineral assets sustainably, public land management agencies like the United States Forest Service and Bureau of Land Management were established.

Fast forward to today. The view of “anywhere else” has driven most mining out of the US, which has resulted in our reliance on mineral imports from other countries. This has compromised not only our economic health but our national security. High-tech industries accounted for 12% of our total employment and 23% of our output in 2021. What happens if the US is denied access to rare earth exports for one reason or another? Chip makers are right now trying to assess the economic impact of China’s recent export ban on gallium and germanium. The economic implications of rare earth restrictions or stoppage would be substantial and could take years to recover from. What about the many defense applications for REs? Are you comfortable being mostly, or in some cases completely dependent, on the import of key materials for our communication systems, fighter jets, and other defense technologies?

But let us go to one of my biggest concerns. “Anywhere else” means mining is done in countries with insufficient environmental regulations and protections. As an environmental engineer, I find this troubling. China’s dominance in the RE market has been in part supported by their minimalistic environmental regulations. If we believe in the concept of environmental protection, why can we not open our minds and hearts to look at mining with a broader perspective? Doesn’t it make sense that mining be done in countries with practical regulations and oversight to limit the global environmental impacts?

Innovation in the form of our proprietary rare earth processing and separation technology has the ability to move the RE industry forward in a significant way. The system we have designed will minimize waste streams, making it much more attractive environmentally than existing technology, while improving the economics of recovery.  This will help make US products more competitive. But innovation is driven by economics. For companies to spend the type of R&D dollars we are investing, economic recovery must be possible and that means advancing the Bear Lodge Rare Earth Project into development. This will provide mining sector employment and bring economic diversity to Wyoming. It will also help to address both the economic and national security issues related to REs. Most importantly, it will be developed responsibly, paying the utmost attention to the environment.

Jobs, industrial diversification, economic and national security, and responsible development – all these factors suggest that we need mining and that includes development of the Bear Lodge Project.

CEO Corner Prior Commentary

What can you say about Wyoming?

May 11, 2023

Beautiful and wild with amazing vistas and friendly people. What can you say about doing business in Wyoming – no place better.

Rare Element Resources (RER) started exploring the Bear Lodge Project, located in northeast Wyoming, in 2004. Wyoming is a state that understands resource development is a critical element of an industrial society with mineral extraction being the largest contributor to the State’s GDP. Given that, they recognized quickly that the identification of a large, mineralized district of rare earth elements at Bear Lodge represented an excellent opportunity to diversify further their mineral resource portfolio and bring new, high-paying jobs to the State.

Wyoming has the right ingredients for a resource development company – a rich history of mineral development, a pro-business focus, plus a skilled-workforce and positive tax climate. Former Governor Mead began in 2012 by introducing his Value-Added Business and Industry Plan to do more processing and end-use activities within Wyoming of minerals produced from Wyoming. Governor Gordon has taken additional meaningful action by passing legislation aimed at streamlining the permitting process for projects like Bear Lodge. The Wyoming Energy Authority also approved a $4.4M grant to support development of the Company’s demonstration plant with a goal of scaling up our proprietary recovery/separation technology in support of commercial development.

Federal and State legislators have met with the company, had site visits, and continue to have open dialogues on how they can support our efforts. Local leaders, like Mayor Trandahl (Upton) and city staff, follow the company’s progress closely and meet with our team regularly.

Recently, RER started working with the talented faculty and students at the University of Wyoming’s Center for Business and Economic Analysis (CBEA) on a review of the domestic and international outlook for rare earths as it relates to the company’s project. CBEA’s mission is to support the economic growth and diversification of Wyoming’s economy through applied economics to promote a thriving and prosperous State.

Rare earths, like gold or uranium, can be found in small quantities, almost everywhere on earth, even in seawater. What is rare is finding them in high grades with good volumes in a place where the value of mineral development is understood and encouraged and where State leaders actively support a project’s advancement. We have all those things with Bear Lodge and thank the great state of Wyoming for their continued support.