Rare Element Resources (RER) has received the green light from the US Department of Energy (DOE) to commence operations at its rare earth processing and separation demonstration plant in Wyoming.
The DOE’s Office of Energy Efficiency and Renewable Energy issued the final Project Continuation Notice, approving the operations budget and readiness for the operations phase.
This development paves the way for the plant to begin operations in Q4 2024, contingent on the anticipated approval from the US Nuclear Regulatory Commission (NRC) in the coming weeks.
The demonstration plant is a critical step in advancing RER’s proprietary technology, which is essential for the design of a commercial-scale facility.
It aims to provide valuable operational and economic data. The DOE has also increased the project’s cost-share budget to almost $53.6m, with the federal cost share rising by 10% from around $21.8m to $24.2m.
Despite the increased budget, the company expects the total project cost to exceed the DOE’s contribution due to supply chain issues, inflation and design refinements.
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
RER informed the DOE that it will use its own funds to cover any additional costs, while also seeking alternative funding sources.
The upcoming weeks are crucial as the company anticipates receiving the NRC’s operations approval.
The transition from construction to operations will introduce approximately 20 full-time positions to manage the plant’s day-to-day activities.
RER president and CEO Ken Mushinski said: “In anticipation of the DOE’s operations approval just received, we have spent the past several months working alongside the project team and our contractors preparing the site for operations.
“With the achievement of this pre-operational milestone and anticipated receipt of the NRC’s licence amendment necessary for operations, we continue preparations for the commencement of plant operations.
“We have engaged Wood plc, out of Gillette, Wyoming, as our operations staffing contractor, which is preparing a staffing roster for operating the demonstration plant under RER’s supervision.
“Entering the operations phase moves us one step closer to proving our innovative rare earth recovery technology is ready for commercial applications.”
