Not only are there more rare earths at Wyoming’s Halleck Creek northeast of Laramie than Wyoming Rare (USA) Inc. initially thought, but they’re proving easier to get by a factor of 10.
That’s significant because the resource had already been identified as one of the largest rare earth deposits in North America, and as one of the world’s top 10 rare earth projects.
The new estimate represents a 12.2% increase over previous metrics, making it a 2.63-billion-ton resource, according to the company. But it is the higher grade of ore that may prove more consequential.
With prices for rare earths low — thanks in large part to China glutting the market — many industry analysts have said it will take a higher grade of ore for the company to reach economic viability. And it’s that latter metric that will ultimately determine investor interest in developing the mine.
Wyoming Rare (USA) President Joe Evers told Cowboy State Daily what they’re finding is that more of the non-rare earth material is getting removed in the first stage of processing than initially expected.
The company reports around 93.5% of the non-rare earth material is eliminated in stage one processing. That makes the remaining 6.5% of mined ore much less costly to develop.
These strong economics give the Halleck Creek mine billion-dollar potential.
“Being able to increase the overall tonnage at the Cowboy State mine site at Halleck Creek and the grade of the resource are two really positive things that can help us as we move into this next phase of the pre-feasibility study,” Evers told Cowboy State Daily. “This kind of data sets the table for moving into that study and hopefully progresses the mine to the next phase.”
Wyoming Is Leading USA’s Charge For Rare Earths
Wyoming Rare (USA) is among several rare earth companies in America that find themselves in a race against time, trying to establish a domestic rare earth supply chain even as China has moved to dramatically restrict America’s access to many of these critical minerals.
China controls about 90% of the world’s rare earths, which have become critical for a whole host of purposes besides just electric car batteries. These critical minerals are in cellphones, computers, military equipment, lasers, medical equipment — just about any technological gadget. That makes them tremendously consequential to America’s economy as a whole.
Both Republican and Democrat administrations have sought to untether the United States from China’s grip on these minerals, making it a rare area of bipartisan agreement.
Because of that importance, the Export-Import Bank of the United States has pledged a $450 million loan, contingent on sufficiently moving the project forward.
The improved metrics for the mine make that a more likely prospect, and it will be a win not just for Wyoming, but America, by securing a domestic supply chain for rare earths that Evers said couldlast for decades.
“Wyoming is in the lead on this,” he added. That estimation includes all of the state’s projects, including the rare earth demonstration plant in Upton, which is nearing completion.
“All of the projects in Wyoming have merit,” Evers said.
Another New Value Chain
But it’s not just mining that Wyoming Rare (USA) seeks to develop in Wyoming. The company is also looking to keep more of the value chain for rare earths close to home, by processing those rare earths in the Cowboy State.
Wyoming Rare has recently inked a deal with the Western Research Institute located in Laramie to help them advance that goal, which will be another huge win for Wyoming if successful. Wyoming mines many commodities that go to other states for added value, then return as much higher-priced goods. Capturing more of that value chain has long been a goal for the Cowboy State.
Evers said the work Western Research is doing will be very helpful to their goal of alsoestablishing processing in the state. But isn’t considered make-or-break.
“So much about Wyoming makes sense,” he said. “We’ve got a great jurisdiction overall. We’re very close to world-class infrastructure, interstates, highways, railroads. We have great access to electricity, natural gas, and all of those key components.”
Evers added that he would welcome more rare earth mining companies to Wyoming, which can only help in building synergy to get a domestic rare earth industry going.
“The more crowded the race gets domestically, that’s the kind of stuff we need to solve this broader issue that we face in the economy,” he said.
Evers believes that will also help answer a key question for not just Wyoming Rare (USA), but for other rare earth companies. Namely, who is the customer out there saying, “Hey we can’t wait to get this product.”
“Those are the things that help you advance the project from a financial standpoint,” Evers said. “Because as a new industry, it’s sometimes hard to go to the bank to say, ‘Hi, I’m trying to build a mine …’ That’s an important thing to show.”
Renée Jean can be reached at renee@cowboystatedaily.com.
