Rare Element Resources Ltd. has provided an update on the progress of its rare earth recovery and separation demonstration plant.
The company’s landmark rare earth recovery and separation demonstration plant is currently under construction in Upton, Wyoming.
Significant advancements have been made in site preparations and the arrival of preassembled operating equipment.
Under the supervision of general contractor Loenbro, based in Gillette, Wyoming, the upgrades to the brownfield site are nearly complete.
Essential site utilities, including electricity, water, and sewer systems, have been upgraded. Earthwork on the site has been finished, and the installation of exterior catchment and sediment control systems, along with a fire suppression system, is complete.
The building expansion intended to house the rare earth recovery and separation demonstration plant is also nearing completion.
Additionally, modular office trailers and a rock crusher for processing feed samples have been delivered and are in the process of being installed.
The company is also making longer-lead purchases, such as securing an operations contractor and acquiring necessary chemicals and consumables.
Skid-based modular construction
The production line segments have been preassembled on skids by an off-site integrator. This approach aims to expedite the operational timeline and allow thorough off-site testing before on-site integration.
Each skid, upon arrival, will be fully operational and ready to integrate with the rest. This modular design offers flexibility, as individual skids can be repurposed for future commercial use.
The first skid arrived in early May 2024, with the remaining skids expected to be delivered throughout the summer.
Department of Energy cost-share agreement
In line with the cost-share agreement with the Department of Energy (DOE) for plant construction and operations, the project team, led by General Atomics (GA), has submitted an updated construction and operations budget to the DOE for approval.
The DOE’s approval is expected by September 1, 2024, which coincides with the projected start of the operating phase. This phase will last up to 12 months.
The updated budget, which now stands at approximately $53.6m, reflects a 21% increase from the original $44m budget.
This rise accounts for inflationary pressures on labour, equipment, and consumables, as well as optimised engineering and design adjustments.
The DOE has been requested to support the increased budget on the same 50% cost-share basis as previously agreed.
Rare Element Resources Ltd. is prepared to cover the additional costs to ensure the plant’s operation gathers the necessary data for commercialisation.
Funding for the revised budget and any further necessary adjustments not covered by the DOE will come from the proceeds of the company’s rights offering completed in March 2024.
Rare earth recovery and separation plant future steps
In the coming weeks, additional skids are expected to arrive, completing the interior plant setup.
A contractor will be engaged to provide approximately 20 full-time employees for the project’s operational phase.
These steps mark significant progress towards the demonstration plant’s completion and the commencement of its operations, paving the way for potential future commercialisation.
Ken Mushinski, the Company’s President and Chief Executive Officer, commented: “All activities are moving us toward the goal of plant start up in the next few months.
“With an operations manager in place and operations contractor selection underway, we are now starting to transition from design and construction to operations.
“The DOE is aware of the extraordinary inflationary pressures that have occurred since the project budget was initially estimated in 2021, and we are hopeful the DOE will contribute further cost-share funds to offset the increased financial costs of the project.
“While we focus on the important next steps, including confirming a final budget and schedule with the DOE, we are pleased with the efforts and dedication of our partners in this project, including their subcontractors, which have led to the progress achieved thus far, and we look forward to the timely commencement of operations.”
