What began as the purchase of a mine in Wyoming as an investment for Randall Atkins ended up becoming a great discovery. A rare earth mine full of neodymium, dysprosium, and terbium, for which he paid $2 million but whose real value is $36 billion. From Ramaco Resources, Atkins’ company, they never expected this turn of events. The significance of this event lies not only in its economic value but also in its potential to revolutionize the technology industry.
To this day, China is the main owner of the rare earth market, which could pose a challenge to the Asian giant. Moreover, the materials that can be extracted from them are in high demand by the technology industry for the production of batteries, electric motors, and even infrastructures necessary for the functioning of renewable energy.
Ramaco Resources
Founded in 2015, Ramaco Resources Inc. is a U.S.-based mining company focused on the production and development of high-quality metallurgical coal. The coal it produces is a key input for steel manufacturing in coke plants and blast furnaces, both in North America and in the international market. It primarily operates in West Virginia and Virginia, with assets such as Elk Creek, Berwind, Knox Creek, and RAM Mine. Its headquarters are located in Lexington, Kentucky, United States, and it has recently been in the spotlight because its director, Randall Atkins, acquired a coal mine that turned out to be something else.
What happened with Randall Atkins’s purchase?
For a value of $2 million, Randall Atkins, one of the founders of Ramaco Resources and the company’s CEO since 2021, decided to invest in the purchase of a coal mine in Wyoming. However, when they started mining, they realized that it was not coal that these lands were hiding. Unintentionally, he had just bought a massive rare metal deposit which, far from the money he paid for it, is worth $36 billion! They found out that it is full of elements like neodymium, terbium, and dysprosium.
What is the importance of this discovery?
Aside from the money (which is not insignificant), the importance of finding this type of mine in the United States is substantial. The minerals found there are highly sought after for the manufacture of electric cars, wind turbines, missiles, and cutting-edge technology. As declared by the company Ramaco Resources, “this is the first discovery of its kind on U.S. soil since 1952. We never imagined we would find something like this”.
Rare Earth Market
So far, it is China that leads 90% of the rare earth market worldwide. This puts it in a position of advantage, which with the discovery of the Wyoming mine could be threatened. This could mean that the United States reduces its dependence on China and could be self-sufficient in sectors such as renewable defense and technology.
Why are they called rare earths?
This is one of the questions people often ask, especially because the term has been mentioned more frequently lately. The name “rare earths” does not refer to the rarity or scarcity of the minerals it denotes, but to the difficulty involved in extracting and processing them without generating significant environmental impact and economic cost.
The problem is that these minerals are increasingly in demand, especially for the manufacturing of electric motors, high-performance magnets, batteries, and airplanes, as all of them depend on these elements. We will have to wait to see if Ramaco Resources is capable of facing the challenges presented by their extraction and processing, and see if it can position itself alongside China in one of the world’s most important markets.