Ramaco Resources (NASDAQ:METC) announced Tuesday that a preliminary economic assessment (PEA) conducted by Fluor Corporation (NYSE:FLR) found its Brook mine project in Wyoming to be both commercially and technologically viable, with a potential pre-tax net present value (NPV) of up to $1.2 billion.
“This report marks an important milestone in Ramaco’s transition to become both a rare earth and critical mineral, as well as a metallurgical coal producer,” Randall Atkins, Ramaco’s Chairman and CEO, said in the press release. “The development of our Brook mine deposit is important not only to Ramaco but also to our country.”
Fluor, a global engineering and construction firm, has conducted the PEA, which will be released on July 8 in its entirety. The findings build upon earlier technical assessments and confirm that the Brook mine contains the largest known unconventional U.S. deposit of rare earth elements (REEs) and critical minerals extracted from coal and carbonaceous ore.
The PEA estimates an 8% NPV of $1.197 billion and a 10% NPV of $898 million, based on an initial capital cost of $473 million (excluding a 22% contingency). The mine is projected to generate annual adjusted EBITDA of $143 million by 2029 on revenues of $378 million, with a robust internal rate of return (IRR) of 38%.
The mine could produce 1,242 tons of oxide annually, including 456 tons of high-value materials like neodymium, praseodymium, scandium, gallium, germanium, dysprosium, and terbium.
These elements are essential for magnets, defense systems, electronics, and clean energy technologies. The mine’s expected 42-year initial lifespan is expected to tap less than 4% of its estimated 1.7 million tons of rare earth oxides.
“When we are in production, the Brook Mine will be one of only two domestic sources of rare earth elements,” Atkins said. “However, it will be the only domestic source of both heavy rare earth elements and critical minerals that are vital to our nation’s defense industry,” he added.
Ramaco plans to process ore using a flow sheet that involves crushing, purification, separation, and calcination, with some steps utilizing proprietary technology. The soft, clay-rich geology of the deposit enables more efficient extraction compared to traditional hard rock sources, thereby minimizing environmental and capital costs.
Initial mining has begun to supply material for pilot-scale testing. Ramaco expects to launch an on-site pilot plant in the fourth quarter of 2025, with full commercial testing to commence by mid-2026.
Rare earth elements are vital to the modern economy, powering everything from smartphones and electric vehicles to guided missile systems. “This will be America’s rare earth mine,” Atkins noted. “China may now be dominating these critical materials. But this will be America’s rare earth mine.”
Price Watch: Ramco Resources closed at $9.98 on Tuesday. The stock is down 2.73% year-to-date.
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