American Resources Corporation’s American Carbon Corporation Provides Updated Rare Earth Analysis From West Virginia Project
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Insights
The announcement by American Resources Corporation regarding the high-grade rare earth and critical mineral concentration at their Wyoming County Coal project presents a notable opportunity in the critical minerals market. The ability to extract these materials as a byproduct of metallurgical carbon production could potentially disrupt the current supply chain, which is heavily reliant on China.
Exploring the cost dynamics, the integration of rare earth mineral extraction with carbon production could lead to a significant reduction in costs. This is particularly important given that rare earth elements (REEs) are notoriously difficult and expensive to mine and refine. By leveraging byproduct economics, American Resources Corporation could gain a competitive advantage by offering these materials at a lower price point than standalone REE operations.
From a market perspective, the demand for REEs and critical minerals is expected to grow, driven by the increasing adoption of electric vehicles and advanced electronics. If American Resources can scale its operations and maintain cost efficiency, it could capture a substantial market share and reduce U.S. dependence on foreign REE sources, which has been a strategic concern.
Investors should note the strategic use of a $45 million tax-exempt bond to fund the development of the Wyoming County Coal project. This financing approach could be a smart move, potentially improving the project's return on investment by lowering the cost of capital.
Additionally, the partnership with ReElement Technologies positions American Resources to capitalize on the full lifecycle of REE production, from extraction to refinement. This vertical integration could improve margins and provide a buffer against market volatility in raw material prices.
While the news is promising, investors should consider the execution risks associated with scaling new technology and entering a market with established global players. The success of this initiative will depend on the company's ability to maintain operational efficiency and navigate the regulatory landscape for mining and environmental concerns.
The environmental implications of American Resources Corporation's approach to extracting rare earth and critical minerals are noteworthy. Traditional mining and refinement of REEs are energy-intensive and can cause significant environmental damage. By utilizing byproduct extraction methods, the company could potentially reduce the environmental footprint of REE production.
Moreover, this method aligns with broader economic trends towards circular economy principles, where waste materials are repurposed to extract additional value. If successful, this could set a precedent for other mining operations to follow, leading to more sustainable practices industry-wide.
However, the long-term impact will depend on the scalability of the technology and adherence to environmental regulations. The company's commitment to socially responsible supply chains will be under scrutiny, as stakeholders increasingly prioritize sustainability alongside profitability.
Total grade of rare earth and critical minerals exceed 550 ppm from its Wyoming County, WV property as certified by an independent third-party lab
Critical and rare earth minerals will be concentrated alongside premium mid vol metallurgical carbon production as a byproduct to its core operations, significantly reducing costs of concentration step
FISHERS, IN / ACCESSWIRE / April 1, 2024 / American Resources Corporation (NASDAQ:AREC) ("American Resources"), a next generation and socially responsible supplier of rare earth and critical elements, carbon and advanced carbon materials to the new infrastructure and electrification marketplace, today announced updated results of its rare earth deposits at its Wyoming County Coal project in West Virginia with over 550 ppm as verified from an independent third-party laboratory. The ongoing project development is being funded by the Company's previously announced
Tarlis Thompson, CEO of American Carbon Corporation commented, "Our team has laid the foundation for this project as one of the largest, low cost, mid vol metallurgical carbon facilities with inherent high-grade rare earth and critical mineral concentration. Extraction of rare earth minerals from nontraditional sources are extremely challenging to make economical as a standalone business. However, integrating it within a premium mid vol met carbon operation utilizing byproduct economics and innovative technology changes the cost structure for it to be viable. Our focus on building concentration facilities alongside profitable metallurgical carbon extraction and processing operations enables us to significantly lower costs and utilize byproduct economics to unlock the value of traditional wasted material. We are extremely excited to share that the analysis conducted from this site exceeds 550 ppm. As we push forward on this exciting project, we are also looking to further expand our footprint in West Virginia to replicate our efficient model to extract metallurgical coal and concentrate rare earth minerals as a byproduct to feed into our ReElement Technologies division for the final separation purification and refinement step."
Rare earth and critical minerals are used in the electric drive train (magnets and batteries) of e-mobility as well as other electronics and military applications all throughout the world. American Carbon has an agreement in place with ReElement Technologies to refine concentrated rare earth materials from unconventional coal-based resources into ultra-pure products. Over
ReElement Technologies Corporation is the only full lifecycle provider of critical and rare earth elements in the United States. Learn more about ReElement Technologies' process and technology here - Video.
About American Resources Corporation
American Resources Corporation (NASDAQ: AREC) is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled. American Resources has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon and rare earth mineral deposits are concentrated.
American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.
About ReElement Technologies Corp
ReElement Technologies Corp is redefining how critical and rare earth elements are both sourced and processed while focusing on the recycling of end-of-life products such as rare earth permanent magnets and lithium-ion batteries, as well as coal-based waste streams and byproducts to create a low-cost and environmentally-safe, circular supply chain. ReElement Technologies has developed its innovative and scalable "Capture-Process-Purify" process chain in conjunction with its licensed intellectual property including 16 patents and technologies and sponsored research partnerships with three leading universities to support the domestic supply chain's growing demand for magnet and battery metals. For more information visit reelementtech.com or connect with the Company on Facebook, Twitter, and LinkedIn.
Special Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company's actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond American Resources Corporation's control. The words "believes", "may", "will", "should", "would", "could", "continue", "seeks", "anticipates", "plans", "expects", "intends", "estimates", or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved.
PR Contact
Precision Public Relations
Matt Sheldon
917-280-7329
matt@precisionpr.co
Investor Contact:
JTC Team, LLC
Jenene Thomas
833-475-8247
arec@jtcir.com
RedChip Companies Inc.
Todd McKnight
1-800-RED-CHIP (733-2447)
Info@redchip.com
Company Contact:
Mark LaVerghetta
Vice President of Corporate Finance and Communications
317-855-9926 ext. 0
investor@americanresourcescorp.com
SOURCE: American Resources Corporation
View the original press release on accesswire.com
FAQ
What is the ppm level of rare earth deposits in Wyoming County, WV for American Resources (AREC)?
How does American Resources (AREC) plan to reduce costs in rare earth extraction?
Who is the CEO of American Carbon and what is their view on the rare earth deposits?
What is the mission of ReElement Technologies in the rare earth industry?
What percentage of the world's rare earth elements are currently refined in China?
