Project would be only primary source mine
for gallium, germanium, and scandium in the world
LEXINGTON, Ky., Dec. 4, 2024
/PRNewswire/ -- Ramaco Resources, Inc. (NASDAQ: METC, METCB)
("Ramaco Resources" or the "Company") is pleased to announce that
Fluor Corporation ("Fluor") in its interim preliminary
techno-economic analysis of Ramaco's Brook Mine projects that the
development is both commercially and technologically feasible. The
mine holds a large unconventional deposit of rare earth elements
and critical minerals sourced from coal and carbonaceous ore.
Key Highlights:
- Ramaco seeks to extract valuable rare earth elements ("REE")
and critical minerals from unconventional coal and carbonaceous ore
deposits contained at the mine, which has been called one of the
largest unconventional deposits of these elements in the world by
the U.S. Department of Energy's National Energy Technology
Laboratory ("NETL").
- Ramaco retained Fluor to conduct both a preliminary
techno-economic study of the Brook Mine, as well as a follow-on
more complete scoping study.
- Substantial metallurgical and chemical testing of the
deposit by independent third-party laboratories is ongoing, and
will be finalized in Q1 2025. Fluor will then complete their final
preliminary techno-economic report upon receipt and analysis of
that data in Q1. A subsequent full scoping study is anticipated in
Q2 2025. Economic projections will be provided upon completion of
the studies.
- From its interim preliminary analysis, which is subject to
receipt and analysis of complete testing results and data, Fluor
concludes the Brook Mine project is both technologically and
commercially feasible.
- Preliminary financial modelling from Fluor indicates both
potentially strong economics and financial returns, even at a lower
level of capital investment than required at traditional hard rock
REE mines, which typically contain deposits which are both harder
to mine and radioactive to process.
- Preliminary findings indicate that the elements of scandium,
gallium and germanium oxides account for approximately 70% of
potential revenue. Fluor indicates that the Brook Mine would be the
only primary source mine for these elements in the world.
- On December 2, gallium and
germanium were banned for export to the
United States by China,
which controls approximately 95% and 60% respectively of these
critical materials used globally.
- Scandium, gallium, germanium together with magnetic rare
earth elements (neodymium, praseodymium, dysprosium and terbium)
constitute over 95% of potential revenue, but only roughly one
third of the deposit.
- The Brook mine plan will seek to high-grade the extraction
process to focus primarily on mining these higher value oxide
products.
- The Company continues to work with Fluor to evaluate
planning and design of a commercial pilot plant, with construction
on track to begin in the second half of 2025.
The results of the preliminary assessment by Fluor provide
momentum and independent validation for Ramaco to continue its
current development plans for the Brook Mine carbon ore, REE and
critical mineral deposit. Unlike conventional REE deposits that
often require complex and costly processing, as well as the
handling of radioactive material, the Brook Mine deposit uniquely
consists of soft, non-radioactive, friable rock associated with
coal.
This minimizes the energy-intensive processes typically
associated with hard rock mining, which should facilitate a more
efficient extraction at lower capital intensity than REEs found in
hard rock mines. This should also support a streamlined flow sheet,
reducing operational complexity and potentially lower overall
capital and operational costs.
"This initial report marks an important milestone in Ramaco's
pursuit of making the development of its Brook Mine deposit into a
far-reaching critical materials commercial business. Yet much work
still remains on this potentially transformational road for us,"
said Randall Atkins, Chairman and
CEO of Ramaco Resources. "Importantly, this analysis from a
recognized independent firm validates our continued pursuit of the
development of this potentially valuable and nationally strategic
deposit."
"We envision that the full commercial, technical and economic
contours of this project will evolve over the next several months
with the release of the final techno-economic report and then the
scoping study. This Spring we will be expanding further coal mining
and initiating process development of the project. We will continue
to provide regular updates to our investors as we transition
forward in the creation of our emerging rare earth and critical
mineral business."
About Ramaco Resources, Inc.
Ramaco Resources, Inc. is an operator and developer of
high-quality, low-cost metallurgical coal in southern West Virginia, and southwestern Virginia and a developing producer of coal,
rare earth and critical minerals in Wyoming. Its executive offices are in
Lexington, Kentucky, with operational offices in Charleston, West Virginia and
Sheridan, Wyoming. The Company currently has four active
metallurgical coal mining complexes in Central Appalachia and one coal mine and rare
earth development near Sheridan,
Wyoming in the initial stages of production. In 2023, the
Company announced that a major deposit of primary magnetic rare
earths and critical minerals was discovered at its mine near
Sheridan, Wyoming. Contiguous to the Wyoming mine, the Company operates a carbon
research and pilot facility related to the production of advanced
carbon products and materials from coal. In connection with these
activities, it holds a body of roughly 60 intellectual property
patents, pending applications, exclusive licensing agreements and
various trademarks. News and additional information about Ramaco
Resources, including filings with the Securities and Exchange
Commission, are available at https://www.ramacoresources.com.
For more information, contact investor relations at (859)
244-7455.
Point of Contact:
INVESTOR
RELATIONS: info@ramacometc.com or 859-244-7455
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SOURCE Ramaco Resources, Inc.