Ramaco Announces Project Update and New Third-Party Groups Assisting in Development of Rare Earth Elements Deposit at Brook Mine

Rhea-AI Summary

Ramaco Resources (NASDAQ: METC, METCB) has provided an update on its Brook Mine project in Wyoming, focusing on the development of rare earth and critical mineral deposits. The company has enlisted the expertise of several third-party groups to advance the project:

Fluor will conduct a techno-economic assessment and design a demonstration plant for rare earth and critical mineral refining and processing. SGS is providing mineralogical and elemental analysis, as well as hydrometallurgy expertise. Hazen Research Inc. is contributing to mineralogical and elemental analysis, along with physical beneficiation testing. The National Energy Technology Laboratory (NETL) is assisting with deposit assessment and AI-assisted high-grade mapping.

Ramaco plans to start construction on the new processing facility in mid-2025 and expects to complete the techno-economic analysis later this year. Additional testing results are anticipated to be released in the Fall.

Positive

• Engagement of industry-leading experts (Fluor , SGS, Hazen Research) for project development
• Plans to construct a rare earth demonstration processing facility by mid-2025
• Potential to develop one of the largest rare earth projects in the United States
• Implementation of AI-assisted high-grade mapping to improve mining efficiency

Negative

• None.

Insights

Mining Industry Expert

Ramaco's announcement signals a significant step forward in developing rare earth elements (REEs) at the Brook Mine. The involvement of industry leaders like Fluor and Hazen Research adds credibility to the project. Fluor's techno-economic assessment and plant design will be important for validating the project's viability and attracting potential investors.

The planned demonstration processing facility by mid-2025 is a key milestone. If successful, it could position Ramaco as a first-mover in domestic REE production, aligning with the U.S. push for critical mineral security. However, investors should note that REE projects often face technical challenges and market uncertainties. The success of the demonstration plant will be a critical indicator of the project's long-term potential.

Financial Analyst

While Ramaco's core business is in coal, this diversification into REEs could significantly impact its future valuation. The Brook Mine project, if successful, may reduce the company's reliance on coal revenues and potentially attract ESG-focused investors. However, the financial implications remain uncertain without concrete economic assessments.

Investors should watch for the techno-economic analysis expected later this year, which will provide important insights into the project's viability and potential returns. The capital expenditure for the demonstration plant and its impact on Ramaco's balance sheet will be important factors to consider. Given the early stage of the project, its impact on near-term financials is likely , but it could become a significant long-term value driver if executed successfully.

Geopolitical Analyst

Ramaco's Brook Mine project aligns with the U.S. strategic goal of reducing dependence on foreign REE supplies, particularly from China. If successful, this could be one of the first new domestic REE projects, potentially strengthening America's position in the critical minerals supply chain. This geopolitical angle might attract government support or partnerships, enhancing the project's prospects.

However, investors should be aware of the complex geopolitical landscape surrounding REEs. China's dominance in REE processing and potential market responses could impact project economics. Additionally, regulatory changes or government initiatives aimed at boosting domestic REE production could significantly influence the project's trajectory. The Brook Mine's development should be monitored in the context of broader U.S.-China relations and critical mineral policies.

LEXINGTON, Ky., Aug. 6, 2024 /PRNewswire/ -- Ramaco Resources, Inc. (NASDAQ: METC, METCB, "Ramaco" or the "Company") today released additional information regarding the Brook Mine project in Wyoming, as well as third-party groups advancing the development of rare earth and critical mineral deposits at the site. This includes two new companies — Fluor Corporation and Hazen Research, Inc. — who bring their industry-leading expertise to the project.

Third party groups currently working on the Brook Mine project now include:

• Fluor Corporation, a global leader in engineering and construction, will conduct a comprehensive techno-economic assessment of our rare earth mining operations. Based on this validation and economic assessment, Fluor will also be designing the rare earth and critical mineral refining and processing demonstration plant at Ramaco's Western operations in Wyoming. The Company is planning to start construction on this new facility in mid 2025.
• SGS, a world-leading inspection, verification, testing, and certification company, is providing mineralogical and elemental analysis. Additionally, their expertise in hydrometallurgy will support various aspects of Ramaco's flow sheet design.
• Hazen Research Inc. is contributing their extensive capabilities in mineralogical and elemental analysis to the Brook Mine project, as well as physical beneficiation testing. Their work will enhance Ramaco's understanding of the ore characteristics and improve beneficiation processes, critical for optimizing resource recovery.
• National Energy Technology Laboratory (NETL) is assisting in the continuing assessment and interpretation of the Brook Mine deposit. They are also collaborating with Ramaco on novel AI-assisted high-grade mapping that will help identify and target the highest concentrated areas, thereby improving the efficiency and effectiveness of Ramaco's mining efforts.

"We are excited to have assembled a world-class team of experienced parties in the rare earth and critical mineral fields. Working with our internal critical minerals group, they will help guide and execute on Ramaco's plans to develop what we feel will be one of our nation's largest and soon first new rare earth project of its type in the United States," said Randall Atkins, Chairman and Chief Executive Officer.

"We are now moving with dispatch to complete chemical, mineralogical and metallurgical testing of the deposit while simultaneously doing further exploration. This will inform our overall techno-economic analysis, which we expect to complete with Fluor later this year. We anticipate also releasing additional testing results on our exploration and chemical analysis from Weir International later this Fall. Lastly, we are moving to complete the planning, design and development steps to initiate construction on a rare earth demonstration processing facility contiguous to the mine site by the middle of next year."

ABOUT RAMACO RESOURCES

Ramaco Resources, Inc. is an operator and developer of high-quality, low-cost metallurgical coal in southern West Virginia, and southwestern Virginia. 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 development rare earth and coal mine near Sheridan, Wyoming in the initial stages of production. In 2023, the Company announced that a major rare earth deposit of primary magnetic rare earths 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.

FAQ

What companies are assisting Ramaco Resources (METC) with the Brook Mine project?

Ramaco Resources has enlisted Fluor , SGS, Hazen Research Inc., and the National Energy Technology Laboratory (NETL) to assist with various aspects of the Brook Mine project development.

When does Ramaco Resources (METC) plan to start construction on the rare earth processing facility?

Ramaco Resources plans to start construction on the rare earth demonstration processing facility in mid-2025.

What is Fluor 's role in Ramaco Resources' (METC) Brook Mine project?

Fluor will conduct a comprehensive techno-economic assessment of the rare earth mining operations and design the rare earth and critical mineral refining and processing demonstration plant for Ramaco Resources.

When does Ramaco Resources (METC) expect to complete the techno-economic analysis for the Brook Mine project?

Ramaco Resources expects to complete the techno-economic analysis with Fluor later in 2024.