Rare Element Resources Ltd. (OTCQB: REEMF) announced that the U.S. Department of Energy’s (DOE) Office of Energy Efficiency and Renewable Energy has issued the second and final Project Continuation Notice for the company’s rare earth processing and separation demonstration plant in Wyoming.
The notice enables formal commencement of operations once the company receives operations approval from the U.S. Nuclear Regulatory Commission (NRC), which is anticipated in the coming weeks. These steps will allow operations to begin in the fourth quarter of 2024. The Demonstration Plant is designed to advance the company’s proprietary processing and separation technology and is expected to yield operational and economic data essential for designing a commercial-scale plant.
Rare Element Resources Ltd. is a Littleton-based company focused on delivering rare earth products for various applications in the technology and energy sectors.
“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,” said Ken Mushinski, president and CEO of RER. He added, “With the achievement of this pre-operational milestone and anticipated receipt of the NRC’s license amendment necessary for operations, we continue preparations for the commencement of plant operations.”
The DOE also approved an increase in the project’s cost-share budget to approximately $53.6 million, raising federal cost-share from approximately $21.8 million to about $24.2 million. The company expects that total project costs will surpass this budget, with increases driven by post-pandemic supply chain issues and inflation, along with necessary design changes as the project advanced through various phases. The company plans to use existing funds to cover costs beyond the DOE-approved budget but is also seeking additional funding.
“Although 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,” said Mushinski.
In the upcoming weeks, the company expects to receive NRC operations approval based on the previously issued license. The operations staff, estimated to consist of around 20 full-time positions, will replace the onsite construction and installation crews.