Published: July 12, 2024 |

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Rare Element Resources has released an update on its rare earth recovery and separation demonstration plant currently being constructed in Upton, Wyoming. Details include the progression of site preparations and arrival of the operating equipment preassembled on skids.

“All activities are moving us toward the goal of plant startup in the next few months. With an operations manager in place and operations contractor selection underway, we are now starting to transition from design and construction to operations,” said Ken Mushinski, president and chief executive officer.

“The DOE is aware of the extraordinary inflationary pressures that have occurred since the project budget was initially estimated in 2021, and we are hopeful the DOE will contribute further cost-share funds to offset the increased financial costs of the project,” added Mushinski.

“While we focus on the important next steps, including confirming a final budget and schedule with the DOE, we are pleased with the efforts and dedication of our partners in this project, including their subcontractors, which have led to the progress achieved thus far, and we look forward to the timely commencement of operations,” concluded Mushinski.

Under the direction of general contractor, Loenbro, out of Gillette, Wyoming, the brownfield site upgrades have either been completed or have progressed to near completion. Site utility system upgrades, including electric, water, sewer, and site earth work, have been completed. Exterior catchment and sediment control systems have been installed, and the fire suppression system is in place. Most exterior upgrades to the expansion of the building that will house the plant have been completed. Modular office trailers and a rock crusher for processing the feed sample were delivered to the site and are being installed. The company is proceeding with longer-lead time purchases to support operations, including by securing an operations contractor and purchasing chemicals and other consumables.

An off-site integrator has been constructing segments of the production line on skids. This was done to shorten the time to operations and allow for extensive off-site testing prior to on-site assembly. Each skid will arrive fully operational to be integrated with the others. This modular design has the additional advantage of allowing individual skids to be repurposed for future commercial operations. The first pre-assembled skid arrived on site in early May 2024, with the remainder to be delivered this summer.

As part of the Department of Energy (DOE) cost-share agreement for the plant construction and operations, the project team, led by General Atomics (GA), submitted to the DOE an updated construction and operations budget for its approval. DOE approval is anticipated by September 1, 2024, the project-established date for the operating-phase commencement, which includes an operating period of up to 12 months.

Updated estimates were included in the budget to address increased costs due to inflationary pressures on labor, equipment and consumables, as well as incorporating the optimized plant engineering and design parameters. GA submitted a total project budget of approximately $53.6 million, which is approximately 21 percent higher than the original budget of approximately $44 million. The increase is roughly equal to the inflationary index over the duration of the project to date.

The DOE has been asked to support the growth of budgeted costs on the same 50 percent cost-share basis as previously agreed. The company is prepared to cover the cost increases for the updated project budget to ensure the plant can operate for a sufficient amount of time to gather information necessary for a commercialization decision. The funding for this revised budget and contingency for additional necessary budget adjustments that are not covered by the DOE would come from the proceeds generated by the company’s rights offering completed in March 2024.

In the coming weeks, it is expected that additional skids will be delivered, the interior plant will be completed, and a contractor will be engaged to provide the approximately 20 full-time employees for the operations phase of the project.

Rare Element Resources is a strategic materials company focused on delivering rare earth products for technology, energy, and defense applications by advancing the Bear Lodge Rare Earth Project in northeast Wyoming. Bear Lodge is a significant mineralized district containing many of the less common, more valuable, critical rare earths that are essential for high-strength permanent magnets, electronics, fiber optics, laser systems for medical technology and defense, as well as technologies like electric vehicles, solar panels, and wind turbines.

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