The Week in Rare Earths (July 7)

Enter the DOD

Two major news items this week in the US, both with ties to the US Department of Defense (DOD). First is DOD’s investment in MP Materials, which renewed attention to Ramaco Resources’ Brook Mine project in Wyoming. The latter was actually confirmed to contain significant deposits of rare earth elements (REEs) in May 2023 after an 18-month core drilling program conducted in collaboration with the DOE’s National Energy Technology Laboratory (NETL). But, the Brook Mine, like most REE assets, has been given fresh life (a blank checque?) in the wake of China’s export restrictions, and it is almost like it is “new”.

The MP deal is certain to elicit criticism for the waste of public funds over the high prices paid, environmental externalities and other realities of REE mining and processing. That said, critics are probably not familiar with DOD contracting practices, and hey, national security (in its many forms) comes at a cost. China’s rare earth industry has always been deeply intertwined with the country’s national security apparatus and has cost tens of billions to develop.

See below for detailed write-ups of the MP deal and Brook Mine project in addition to regular sections on new mine discoveries, country programs and corporate developments. This week look out for two special reports on China in Myanmar and Japan’s pending seabed mining efforts.

In market terms, the broader REE market has seen better price support as demand for concentrate has pushed up oxide and subsequently metals costs. However, this has not been consistent across different segments: robust demand and price gains in the light rare earths segment contrast with stability and relative inactivity in the medium-heavy rare earth sector due to weaker downstream demand. Additionally, market participants are increasingly adopting a cautious approach, awaiting results from major magnetic material enterprise tenders before committing to new purchases. Overall, in the short-term prices are expected to drift higher against a backdrop of fluctuating transaction volumes and cautious market sentiment.