Highlights
- American Rare Earths Limited’s subsidiary discovers a massive 2.34 billion metric ton rare earth deposit in Wyoming, potentially one of the largest in the U.S.
- The Cowboy State Mine project secures significant funding, including a $456 million LOI from EXIM and grants from Wyoming, to advance development.
- This strategic deposit could reduce U.S. dependence on China for rare earth elements, crucial for green technology and national security.
Lakewood Colorado based Wyoming Rare USA Inc (opens in a new tab)., a subsidiary of Australian American Rare Earths Limited (opens in a new tab) (ARR.AX (opens in a new tab)) recently discussed a 2.34 billion metric ton deposit of granite with significant amounts of rare earth elements. The company, referred to herein as American Rare, has been both exploring and developing the Cowboy State Mine since 2020. The mine is 25 miles southwest of Wheatland in the eastern part of Wyoming. American Rare owns the Halleck Creek, Wyoming and La Paz, Arizona rare earth deposits. Its flagship project at Halleck Creek, Wyoming, has sustainable rare earth projects in North America.
The recent news was covered by Scott Weiser writing for The Denver Gazette (opens in a new tab), Sunday October 27, 2024.
Summary of the Situation
The Cowboy State Mine is a rare earth deposit in Wyoming that is being developed by American Rare Earths Limited’s subsidiary, Wyoming Rare USA Inc. The mine is located in the rugged mountains and canyons of southern Wyoming, about 25 miles southwest of Wheatland.
The Cowboy State Mine is a significant discovery for several reasons Rare Earth Exchanges delineates below:
| Features | Summary |
|---|---|
| Size | The deposit is estimated to be 2.34 billion metric tons, making it one of the largest rare-earth deposits in the United States. |
| Rare Earth Elements | The deposit contains high concentrations of rare earth elements, including neodymium and praseodymium oxides, which are in high demand and low in radioactive byproducts. |
| Strategic Importance | The deposit is a valuable domestic economic resource and is crucial to the U.S. supply chain. Rare earth elements are used in a wide range of products, including cell phones, automobiles, fighter jets, and missiles. |
The company estimates that it will need $500 million in capital to begin mining and processing the site’s minerals. To help with the development, the company has:
- Secured a $456 million non-binding Letter of Interest (LOI) from EXIM, the U.S. Federal Government’s export credit agency
- Won a $10.7 million grant from the State of Wyoming and the WEA
- Secured a $7.1 million grant to advance exploration and development activities
The company has also completed drilling in 2024 to collect samples and update geological models. The results of the drilling indicate that the deposit is open at depth and extends well into Red Mountain.
In The Denver Gazette piece yesterday journalist Scott Weiser describes the geological dynamics of the location, a large pluton.
The Cowboy State Mine itself includes 200 to 240 acres of the 8,000-acre pluton. According to American Rare’s president Joe Evers (opens in a new tab), the first phase of the mine could easily go down more than a thousand feet and could last 20 years or more.
“Another important point to keep in mind is the 2.4 billion that Joe mentioned,” Sanderson said. “That’s on only 25% of the land that we have in our concession. So, we have a big task to continue exploration activities and continue refining and defining what we’ve got and how much we’ve got.”
With parts of the formation exposed at the surface, this deposit was discovered by geologists scouring the area. Their initial finds led to an ensuing drilling program, part of an effort to map out the highest concentrations of ore, and exploratory drilling will continue as the mine is developed.
The Importance
As noted by the Denver daily newspaper, the payload could be significant given the importance of rare earth elements (REE) as inputs for a range of products powering the new green economy such as electric cars and wind turbines to defense and high technology.
A key ingredient for neodymium, which is used in making high-strength magnets, including those used in wind turbine generators.
Melissa (“Mel”) Sanderson with American Rare Earths Limited validated the importance of the REE deposit, informing the Denver Gazette that the deposit could deliver as much as 200 million metric tons of materials that would be available for manufacturing over its lifetime.
Some Details
The mine has the potential to annually produce (in metric tons) 1,529 mt of neodymium-praseodymium oxide (NdPr), 17 mt of terbium oxide, 91 mt of dysprosium oxide, 383 mt of Samarium-Europium-Gadolinium concentrate, and 1,486 mt of lanthanum carbonate, or more than 3,506 mt of REE according to a scoping study.
Joe Evers of Wyoming Rare went on the record:
“It’s one of the largest deposits of rare earth elements in the nation.” He continued “And what we’re really excited about from a strategic advantage is we have the ability to start a mine on wholly owned land from the state of Wyoming.”
On the topic of the federal permitting process on federally owned land which can take a decade. The Denver media reports the executive sharing that the mine should commence operations in three to five years.
“It’s a clear-cut, singular resource of enormous national security potential to this country,” Sanderson said.
Sanderson said the find is also a highly strategic resource for several reasons. Notably, she said, Wyoming has a track record as an energy supplier to the United States. “With the transition in place that is seeing a gradual decline in coal and a gradual rise in green energy, developing the rare earth resources of the state of Wyoming is absolutely key,” she said. “But secondly, it allows Wyoming to keep a trained workforce of highly skilled mining professionals employed in the state. They’re not going to have to leave and look elsewhere. Thirdly, it maintains the funding for educational opportunities in Wyoming.”
Drivers for Change
The drive toward a green economy, different forms of energy, electric cars, and the like emerges as front and center to the “decarbonization” effort promoted by the Biden administration. This mission aligns with other nations’ commitment to reduce global warming and requires substantial REE supply, along with the processing capability that now is controlled by China. The Asian nation controls about 90% of REE processing worldwide.
Part of a concerted, orchestrated multi-decade initiative to not only control the supply chain but also the sales of key products and ultimately the global digital currency in what Rare Earth Exchanges has referred to as Phase 2 of a three-phase initiative to become the world’s preeminent superpower by year 2049. On this topic likely the Biden administration supports the development of both domestic sources and domestic manufacturing of REE products to bypass China, a goal not likely possible in the next decade.
Weiser reporting for The Denver Gazette references the United States Geological Survey (SGS) citing U.S. production of REE in 2023 equaled about 43,000 tons, with global product totaled 350,000 tons. Reserves in North America are estimated at 3.6 million tons in the United States and more than 14 million tons in Canada, according to the 2024 USGS Mineral Commodity Summary.
When asked if the U.S. could compete with China in the REE marketplace, Geoffrey Hill, American Rare Earths Limited director and one of its founders said, “Competitive with China is an interesting concept. They don’t measure accounting like we do. They don’t need to make a profit. So, do I think we can produce rare earths on a comparable basis to China? Yes, I do, but it may not be profitable.”
“You have to go back to the 50s and the 60s, when the U.S. desperately needed uranium for plutonium. They didn’t worry about whether it was commercial or not. The government subsidized it to make sure it works,” Hill added. “Rare earth is not that much different because the need for rare earth strategically, particularly in defense issues, is so significant. And relying on China is so dangerous.”
Financing for the REE Mine
The Export-Import Bank of the United States issued a non-binding Letter of Interest (opens in a new tab) to provide Wyoming Rare with up to $456 million in debt financing to support construction and operations at the mine just in September.
As reported by Rare Earth Exchanges, the U.S. subsidiary of the Australian mining company also recently received its first reimbursement from the Wyoming Energy Authority (WEA) grant program of just over $304,000.
“We are excited to receive this first reimbursement, which represents a crucial step in executing our plans,” said Chris Gibbs, American Rare Earths Limited CEO in a release. “This funding will significantly aid our efforts to de-risk the Cowboy State Mine and help us achieve our 2025 goals.”
See the link to The Denver Gazette. (opens in a new tab)
Daniel
You Might Also Like…