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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

Great Partners are a Rare Find

Sep 13, 2023

Great Partners are a Rare Find

Any relationship works better when both parties bring something to the table. For Rare Element Resources (RER) and General Atomics, it has been a productive blend of skills and assets that has not only advanced our proprietary extraction and separation technology but has heightened national awareness of the sector, the company, and the Bear Lodge Project.

When General Atomics’ affiliate Synchron took an equity position in Rare Element Resources (RER) in 2017, it was a difficult time for the rare earth (RE) sector.  In 2015, China had flooded the market, dramatically driving down prices at a critical time when new RE projects like ours were trying to get financed. Despite a great project in an exceptional location and an innovative recovery process, RER found all the progress we had made stall and the Bear Lodge Project was put on care and maintenance.

At the same time, General Atomics, a defense and diversified technology leader, was acutely aware of the importance of REs in existing and emerging technology. They understood the inherent risk in having one country control 95% of the supply of refined products and the necessity of developing a domestic rare earth supply chain in the interest of national security. After looking at the geological, environmental, and economic work RER had completed on the Bear Lodge Project, they invested in RER and positioned the Bear Lodge project to be a cornerstone for that effort.

The first thing General Atomics did was put some of their best and brightest minds on advancing our proprietary extraction and separation technology. A consortium of companies, including RER, General Atomics’ affiliate, UIT, and General Atomics' Electromagnetic Systems Group, enhanced RER’s initial design, completed extensive pilot plant testing, and developed a first-of-its-kind, real-time control software that monitors the processing throughout the system to allow for maximum efficiency. The successful completion of this work led the team to move to the next phase – demonstration plant testing – to scale-up the technology while generating the operational and economic data necessary for evaluation of a commercial operation.

The team immediately began work on detailed engineering and permitting as well as procurement of long-lead time equipment for the plant. Design is now completed, and permitting is progressing on schedule. This should allow us to begin construction later this year. Operations, which will process materials from the Bear Lodge Project, are expected to start in the second half of 2024.

I continue to be impressed by the magnitude of resources and the amazing group of professionals General Atomics has assembled to work on the demonstration plant project. Members of their team have given congressional testimony on the importance of developing a domestic source of REs and were instrumental in securing the Department of Energy’s financial participation in the demonstrated plant. Their understanding of the industry and commitment to advancing our proprietary technology and the Project means the company has accomplished more and come farther than it could have on its own. Together, we have a powerful team of scientists, mining professionals and businesspeople who can get the job done. This partnership is a rare find indeed.