Colorado-based Rare Element Resources has received its operations approval as well as an additional funding commitment for its rare earth demonstration plant in Wyoming, set to come online in the fourth quarter.<\/p>\n\n\n\n
The green light from the U.S. Department of Energy\u2019s Office of Energy Efficiency and Renewable Energy is the second and final project continuation notice following its approval of the site\u2019s operations budget along with its confirmation of readiness for operations.<\/p>\n\n\n\n
With this now in hand, RER\u2019s rare earth processing and separation demonstration plant can formally commence its operations once the U.S. Nuclear Regulatory Commission operations approval is received in the coming weeks.<\/p>\n\n\n\n
The plant has been designed to advance the company\u2019s proprietary processing and separation technology, RER said, and is expected to generate the operational and economic data necessary for the design of a commercial-scale plant.<\/p>\n\n\n\n
\u201cIn anticipation of the DOE\u2019s operations approval just received, we have spent the past several months working alongside the project team and our contractors preparing the site for operations,\u201d said Ken Mushinski, president and CEO.<\/p>\n\n\n\n
\u201cWith the achievement of this pre-operational milestone and anticipated receipt of the NRC\u2019s license amendment necessary for operations, we continue preparations for the commencement of plant operations.\u201d<\/p>\n\n\n\n
RER has retained Wood of Gillette, Wyo., as its operations staffing contractor.<\/p>\n\n\n\n
As part of the DOE\u2019s operations approval, the agency also approved an increase in the project\u2019s cost-share budget to approximately $53.6 million, with federal cost-share increasing by 10% from approximately $21.8 million to approximately $24.2 million. The company said it currently anticipates that the full project cost, once operations are complete, will exceed this DOE cost-share budget and that increase will be further defined as operations commence.<\/p>\n\n\n\n
This higher cost is driven by post-pandemic supply chain issues and inflation, as well as necessary design refinements as the project has moved from concept through fabrication and construction.<\/p>\n\n\n\n
The company advised the DOE that it will use existing company funds to cover costs above the DOE approved cost-share budget; however, the company is continuing to pursue other funding to cover these increases.<\/p>\n\n\n\n
\u201cAlthough we have taken extraordinary measures to control costs during the design, construction and soon to commence operation phases, the fact is, our first-of-its-kind rare earth element separation plant project has gone from concept to reality during a recovering economy and associated supply chain issues that has resulted in both schedule and cost challenges. We are appreciative of the DOE\u2019s recognition of the significance of our plant to the U.S. domestic supply chain, and its willingness to provide additional cost-share to assist in offsetting the project cost growth,\u201d Mushinski added.<\/p>\n\n\n\n