NioCorp Praises U.S. Senate Armed Services Committee For Approving Legislation Regarding U.S.-Produced Scandium
July 20 2017 - 5:59AM
NioCorp Developments Ltd. (“
NioCorp” or the
"
Company”) (TSX:NB) (OTCQX:NIOBF) (FSE:BR3) today
praised the U.S. Senate Armed Services Committee
(“
SASC”) for its recent approval of legislation
requesting a U.S. Department of Defense (“
DoD”)
briefing on the potential strategic value of U.S.-produced
scandium. The legislation also “strongly encourages” the DoD
to consider entering into commitments to purchase strategic and
critical materials from U.S. domestic producers that are not yet in
production but which the DoD believes are likely to initiate
production of such materials within the next five years.
Under the leadership of SASC Chairman Senator John
McCain (R-AZ) and Senator Jack Reed (D-RI), and with support from
both Republican and Democratic members of the SASC, the Committee
recently approved the following language on page 287 of the
Committee Report accompanying the Fiscal Year 2018 National Defense
Authorization Act (“NDAA”), which is publicly
available here:
https://www.congress.gov/115/crpt/srpt125/CRPT-115srpt125.pdf
“Domestic production of
Scandium. Given the planned initiation and production in
the United States within the next 5 years of as much as 100 metric
tons of Scandium, the committee directs the Secretary of Defense to
provide a briefing on the potential defense and industrial uses of
Scandium to the congressional defense committees by December 1,
2017.”
NioCorp is the only current prospective producer of
scandium in the U.S. that has announced plans to produce this
amount of scandium on an annual basis. As outlined in the Company’s
recently released Elk Creek Superalloy Project Feasibility Study,
the Company plans to produce approximately 103 tonnes of scandium
product annually. NioCorp’s annual scandium production is
estimated to exceed total global scandium production by a factor of
at least five, and will potentially position the U.S. as the
world’s leading producer of scandium.
On page 288 of the Committee Report accompanying
the NDAA, the SASC also included this legislative language:
“Fiscal stability of the National
Defense Stockpile … Additionally, the committee strongly
encourages the Department to make use of existing authorities under
Section 303 of the Defense Production Act (50 U.S.C. 2093) to enter
into commitments to purchase strategic and critical materials
required to meet the defense, industrial, and essential civilian
needs of the United States from domestic producers and
domestic producers that the Department believes are likely
to initiate commercial production of such materials within the next
five years.” (emphasis added).
If enacted into law, this language could result in
the DoD entering into forward purchase agreements for strategic and
critical materials such as scandium, ferroniobium (FeNb), and
others from prospective producers that are not yet into production.
If the DoD elects to exercise such authorities and enters into
offtake agreements with pre-production companies, it would mark a
significantly more aggressive approach by the DoD in seeking to
encourage greater domestic production of critical and strategic
materials.
As a critical and strategic material, FeNb is
considered to be of such importance that the DoD and the Congress
agreed in the FY2014 NDAA that the National Defense Stockpile
should purchase and store FeNb in the Stockpile in the event of
future emergencies. Scandium is another critical and
strategic material that is analyzed by the DoD on an ongoing basis
as part of the DoD’s “Strategic and Critical Materials Report on
Stockpile Requirements,” although the DoD and Congress have to date
not directed that scandium be purchased for storage in the
Stockpile.
“We were pleased to see the Republican and
Democratic leaders of the U.S. Senate Armed Services Committee put
forward such strategically innovative ideas regarding greater
domestic production in the U.S. of strategic and critical
materials,” said Mark A. Smith, Executive Chair and CEO of
NioCorp. “The Committee clearly wants to help the U.S.
Defense Department use all of the policy tools in its toolbox to
encourage and strengthen supply chains for critical and strategic
materials, especially those that can be produced domestically in
the U.S.”
Mr. Smith added: “NioCorp looks forward to
initiating the first-ever production in the U.S. of ferroniobium,
and the first U.S. production of commercial scandium in decades,
when our Elk Creek Project comes online.”
On Behalf of the Board of Directors,
"Mark Smith”
Mark Smith Executive Chairman, CEO, and
Director
Source: NioCorp Developments
Ltd. @NioCorp $NB $NIOBF $BR3 #Niobium #Scandium #ElkCreek
About NioCorp
NioCorp is developing a superalloy materials
project in Southeast Nebraska that will produce Niobium, Scandium,
and Titanium. Niobium is used to produce superalloys as well as
High Strength, Low Alloy ("HSLA") steel, which is a lighter,
stronger steel used in automotive, structural, and pipeline
applications. Scandium is a superalloy material that can be
combined with Aluminum to make alloys with increased strength and
improved corrosion resistance. Scandium also is a critical
component of advanced solid oxide fuel cells. Titanium is
used in various superalloys and is a key component of pigments used
in paper, paint and plastics and is also used for aerospace
applications, armor and medical implants.
Cautionary Note Regarding Forward-Looking
Statements
Neither TSX nor its Regulation Services Provider
(as that term is defined in the policies of the TSX) accepts
responsibility for the adequacy or accuracy of this document.
Certain statements contained in this document may constitute
forward-looking statements, including but not limited to potential
future production at the Elk Creek Project, anticipated products to
be produced at the Elk Creek Project, the future critical and
strategic nature of niobium and scandium, anticipated costs of
production at the Elk Creek Project being competitive, and
anticipated competitive advantages. Such forward-looking statements
are based upon NioCorp’s reasonable expectations and business plan
at the date hereof, which are subject to change depending on
economic, political and competitive circumstances and
contingencies. Readers are cautioned that such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause a change in such assumptions and the actual
outcomes and estimates to be materially different from those
estimated or anticipated future results, achievements or position
expressed or implied by those forward-looking statements. Risks,
uncertainties and other factors that could cause NioCorp’s plans or
prospects to change include risks related to the Company's ability
to operate as a going concern; risks related to the Company's
requirement of significant additional capital; changes in demand
for and price of commodities (such as fuel and electricity) and
currencies; changes in economic valuations of the Project, such as
Net Present Value calculations, changes or disruptions in the
securities markets; legislative, political or economic
developments; the need to obtain permits and comply with laws and
regulations and other regulatory requirements; the possibility that
actual results of work may differ from projections/expectations or
may not realize the perceived potential of NioCorp’s projects;
risks of accidents, equipment breakdowns and labor disputes or
other unanticipated difficulties or interruptions; the possibility
of cost overruns or unanticipated expenses in development programs;
operating or technical difficulties in connection with exploration,
mining or development activities; the speculative nature of mineral
exploration and development, including the risks of diminishing
quantities of grades of reserves and resources; and the risks
involved in the exploration, development and mining business and
the risks set forth in the Company’s filings with the SEC at
www.sec.gov. NioCorp disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise.
For More Information: Contact Jim Sims, VP of External Affairs, NioCorp Developments Ltd., +1 303-503-6203, jim.sims@niocorp.com
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