American Resources Corporation Provides Update on Economic Viability of Rare Earth Element Production From Carbon Mine Waste
December 12, 2024 - American Resources (NASDAQ:AREC) has announced that its subsidiary, ReElement Technologies, has demonstrated technical and economic viability in producing rare earth elements from carbon mine waste streams. The company's Wyoming County Coal project shows mixed rare earth oxide concentrations exceeding 500 ppm, with an estimated 128 million tons of waste material available, including 8 million tons at their West Virginia property.
ReElement's proprietary refining process, using Ligand Assisted Displacement (LAD) chromatography, offers a more environmentally friendly and cost-effective alternative to conventional methods. The company plans to process these materials at its Kentucky Lithium facility, addressing the critical mineral supply chain challenges amid increasing trade restrictions with China, which currently refines over 90% of global rare earth elements.
Positive
- Demonstrated viable rare earth element production from waste streams with 500+ ppm concentration levels
- Access to 128 million tons of extractable waste material, with 8 million tons in West Virginia
- Proprietary LAD technology offers cost-effective and environmentally safer refining process
- Potential new revenue stream from previously considered waste material
- Strategic positioning amid China's export restrictions on critical minerals
Negative
- Early stage of development with no specific production timeline provided
- No concrete financial projections or cost estimates shared
- Significant capital investment likely needed for full-scale operations
Mining & Materials Analyst Positive
The announcement represents a significant development in domestic rare earth element (REE) production. With demonstrated MREO concentrations of 500+ ppm and access to 128 million tons of waste material, including 8 million tons at the West Virginia property, this creates a substantial potential resource base. The techno-economic viability stems from three key factors: byproduct economics, pre-existing waste material eliminating mining costs and valuable aluminum/silicon oxide content. This positions AREC uniquely in the U.S. rare earth supply chain, particularly important given recent Chinese export restrictions on critical minerals.
The company's LAD chromatographic separation technology offers significant advantages over traditional solvent extraction methods, potentially enabling cost-effective, environmentally friendly domestic REE production. This could provide AREC with a competitive edge in the growing market for critical minerals, especially given increasing U.S.-China trade tensions.
Environmental Technology Expert Positive
ReElement's LAD chromatography technology represents a breakthrough in sustainable rare earth processing. The system's modular design, reduced chemical usage and ability to process multiple feedstock types addresses key environmental and scaling challenges in REE production. The technology's localized processing capability significantly reduces transportation-related emissions and environmental impact compared to traditional methods that require shipping raw materials to China for processing.
The utilization of coal waste streams for REE extraction provides dual environmental benefits - resource recovery from existing waste while producing critical materials for green technologies. This circular economy approach, combined with the environmentally superior LAD process, positions AREC favorably in the increasingly ESG-conscious market for critical minerals.
