Ramaco Resources to Build Wyoming Coal Mine for Rare Earths

Ramaco Resources, Inc. is set to break ground on a new coal mine in Wyoming, marking the first new coal mine in the state in decades. The Brook Mine, located outside Ranchester in far northern Wyoming, is expected to process coal to extract rare earth elements, which are crucial for various tech products and military hardware. The groundbreaking ceremony will be attended by prominent figures including Energy Secretary Chris Wright, former West Virginia U.S. Sen. Joe Manchin, Wyoming Gov. Mark Gordon, and members of Wyoming’s congressional delegation.

Rare earth elements are a group of 17 metallic elements with unique properties that make them essential for specific applications. For instance, neodymium and dysprosium are used in the permanent magnets of wind turbines, while lanthanum is a key component in electric and hybrid car batteries. Yttrium and terbium have critical military uses, including in targeting devices. China currently supplies nearly 90% of the world’s rare earths, raising concerns about continued access to these substances, which has been a focal point in recent negotiations between China and the U.S. The Trump administration had previously attempted to encourage more domestic production of rare earths.

Rare earths, despite their name, are not particularly rare but are challenging to extract in useful quantities due to their scattered distribution. Currently, the only active rare earth mine in the U.S. is located at Mountain Pass in California. Analysis by U.S. national laboratories has shown that the Brook Mine coal contains valuable quantities of rare earths such as neodymium, praseodymium, dysprosium, and terbium, as well as critical minerals like gallium, scandium, and germanium. Ramaco CEO Randall Atkins has stated that the company intends to mine and process the coal in Wyoming and sell the extracted rare earths to domestic customers, including the government.

The Brook Mine project has faced delays, partly due to concerns from landowners about groundwater depletion. Originally envisioned as a source of subbituminous power plant fuel, the mine's focus has shifted to extracting rare earth elements. Ramaco, a public company with metallurgical coal mines in Appalachia, has received Department of Energy grants to develop coal into carbon-based products and a $6.1 million grant from Wyoming to build a rare earth and critical minerals processing plant. A consultant report released this week estimated that fully developing the mine and processing plant would cost around $500 million, with the potential to recover this investment in five years if the rare earths can be successfully extracted and sold. Ramaco also plans to sell the processed coal as fuel.

China's dominance in the global rare earth supply chain, controlling approximately 90% of the world's refining capacity, has raised concerns among other nations, particularly the U.S. The U.S. government has recognized the strategic importance of rare earths and is taking steps to reduce its dependence on Chinese supplies. The development of the Brook Mine in Wyoming is a significant step towards achieving greater self-sufficiency in rare earth production. This initiative is part of a broader effort to secure a stable supply of rare earths, which are essential for the production of magnets used in electric vehicles, wind turbines, and military equipment.

China's control over the rare earth supply chain is a result of years of government support and investment in the industry. The country's dominance in both mining and refining has allowed it to maintain a near-monopoly on the global market. This has raised concerns about potential disruptions in the supply chain and the possibility of China using its control over rare earths as a geopolitical tool. The U.S. government is taking a proactive approach to address these concerns, with plans to invest in rare earth production and explore partnerships with other countries to ensure a stable supply of these critical materials.