Highlights
- Ramaco Resources launches Brook Mine, Wyoming’s first new coal mine in over 50 years.
- The focus is on extracting rare earth elements from coal seams.
- The project aims to produce up to 1,200 short tons of rare earth oxides annually.
- It potentially supplies 30% of the U.S. Department of Defense’s magnet needs.
- Brook Mine represents a pioneering approach to repurposing coal resources.
- Critical minerals to be extracted include neodymium, dysprosium, and scandium.
In a striking fusion of tradition and transition, Ramaco Resources (opens in a new tab) officially launched the Brook Mine near Ranchester, Wyoming — the state’s first new coal mine in over 50 years. The ribbon-cutting ceremony, attended by Energy Secretary Chris Wright (opens in a new tab), Governor Mark Gordon (opens in a new tab), and Wyoming Congresswoman Harriet Hageman (opens in a new tab) (who spoke with Rare Earth Exchanges in an exclusive interview earlier this week), marks not just a milestone for coal, but the emergence of a new player in America’s rare earth game. A full podcast of our conversation with Rep. Hageman will be available shortly. But investors should look beyond the ribbon.
Coal Reborn—But Not for Power Plants
Originally envisioned as a source of thermal coal, Brook Mine has pivoted dramatically. Thanks to a $6.1 million grant from Wyoming and support from the Department of Energy, Ramaco now aims to extract rare earth elements (REEs) and critical minerals directly from coal seams and associated byproducts. These include neodymium, praseodymium, dysprosium, and terbium — all essential for permanent magnets — as well as gallium, scandium, and germanium, used in semiconductors, LEDs, and solar panels.
How Will It Work? The Unanswered Technicals
Ramaco has yet to release detailed technical flow sheets or process chemistry for how they’ll extract and separate these metals from coal — a key concern for investors. Most rare earth projects rely on hard rock ores like bastnaesite or monazite, while coal-based REE extraction remains in the R&D-to-pilot stage, with few proven commercial pathways. Ramaco’s planned facility could become a first-of-its-kind, but questions remain:
- Will they use acid leaching, ionic adsorption, or novel bioleaching techniques?
- How will they manage coal combustion byproducts, heavy metals, and radioactive elements?
- Will processing be integrated onsite, or require toll separation at third-party facilities?
Forward Thinking
Ramaco Resources’ Brook Mine in Sheridan, Wyoming, represents a bold new frontier in U.S. rare earth production—tapping carbon-rich coal seams and associated clays to extract valuable REEs and critical minerals. Unlike hard-rock deposits like Mountain Pass, Brook hosts ionic-adsorption-style mineralization, similar to southern China’s heavy REE-rich clays. The site contains a relatively modest grade (~0.45% TREO) but boasts unusually high concentrations of high-value elements such as dysprosium, terbium, and scandium. With an estimated 1.7 million tons of REO in place, Ramaco plans to mine up to 2 million tons of ore annually, potentially yielding over 1,200 short tons of REO per year—enough to supply up to 30% of the U.S. Department of Defense’s magnet needs, according to some estimates. An estimated 35% are heavy REEs, critical for high-performance magnets.
The company’s extraction process is equally unconventional. Rather than flotation and roasting, Ramaco employs multi-stage leaching—dubbed “SolvEx”—to extract rare earths and critical metals from friable clays and coals. This proprietary method, not proven as of yet at scale, reportedly reduces acid consumption by 40% while achieving 90–95% recovery. After leaching, REEs are purified via selective precipitation and solvent extraction, producing high-purity oxides on-site. The mine will also recover valuable byproducts—scandium, gallium, germanium, and potentially vanadium—making the economics far more favorable than rare earths alone. Ramaco’s dual-product strategy includes coal sales alongside rare earth extraction, and they’ve explored partnerships with European processors like Silmet to scale revenue during pilot phases.
With a preliminary economic assessment showing a $1.2 billion NPV and a 38% pre-tax IRR, the Brook Mine could become a flagship project in American rare earth independence—if it clears remaining hurdles. Ramaco aims to become the nation’s first full mine-to-oxide producer of REEs from coal. The project enjoys a regulatory green light after years of environmental reviews and legal battles. However, it must still manage groundwater risk and reclamation concerns, and this means more regulatory stage gates are possible. At least in theory, by 2029, Brook could complement Mountain Pass by supplying heavy REEs and critical co-products in an integrated U.S. supply chain, potentially anchoring downstream industries like magnet manufacturing. If successful, it may prove that America’s coal legacy still has a role to play—this time, in the strategic mineral economy.
Where It Sits in the Supply Chain
Brook Mine would be upstream in both energy and rare earth terms. The coal, rich in REE-bearing organics and clays, is mined first. Next, Ramaco aims to process these materials locally into separated rare earth oxides (REOs) or concentrates for U.S. buyers, including defense contractors and magnet producers. That puts it squarely in the “extraction and beneficiation” tier of the rare earth supply chain — a key choke point for U.S. strategic independence.
Political Optics vs. Commercial Viability
The Brook Mine embodies the Trump administration’s dual policy push: revive fossil fuel jobs and cut reliance on China. But mining rhetoric doesn’t guarantee metallurgical feasibility. The $533 million projected buildout cost will only be recovered “if the elements prove profitable,” according to Ramaco CEO Randall Atkins — a critical if. There’s also the question of scale—Mountain Pass in California processes 40,000 tonnes per year. Brook Mine’s initial footprint is far smaller.
And let’s not forget legacy hurdles. The project faced years of opposition from local landowners concerned about groundwater. Those environmental questions still linger.
Boardroom Politics & Beltway Backing
Ramaco has stocked its bench with Beltway influence, including former Senator Joe Manchin joining the board in April. That may ease federal permitting, but it adds political baggage. Is Brook Mine the frontier of innovation or a high-risk vehicle for subsidy-backed resource nationalism? Wyoming is known for resource commodity extraction and is generally one of the most market-friendly states in the nation.
Cautious Optimism with an Eye on Engineering
Brook Mine could be a turning point in U.S. REE production — if Ramaco can execute. Investors should monitor pilot yields, reagent costs, waste streams, and progress toward scalable separation. Political momentum is not enough. The real test is chemical.
Brook Mine is a symbolic win, but the commercial case hinges on metallurgical reality and transparent operational plans. Until Ramaco proves coal-based REE extraction at scale, investors should treat the project as speculative — albeit with upside potential if technical hurdles fall.
Stay tuned for our upcoming podcast with Rep. Hageman, who shares her high-level insights prior to the ribbon cutting and where she sees the Wyoming REE ecosystem heading next.
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