Wyoming's First New Coal Mine in Decades to Prioritize Rare Earth Extraction, Bolstering U.S. Critical Mineral Supply
Key Insights
Ramaco Resources is opening Wyoming's first new coal mine in 50 years, the Brook Mine, primarily to extract critical rare earth elements rather than solely for fossil fuel.
The mine aims to significantly reduce U.S. reliance on China, which currently supplies nearly 90% of the world's rare earths essential for technology and defense applications.
National laboratory analyses confirm the Brook Mine coal contains valuable quantities of rare earths like neodymium and dysprosium, alongside critical minerals such as gallium.
With an estimated $500 million development cost, the project is projected to recover its investment within five years by supplying domestic customers, including the U.S. government.
Ramaco Resources, Inc. is poised to inaugurate the Brook Mine near Ranchester, Wyoming, marking the state's first new coal mine in half a century. The groundbreaking ceremony, scheduled for Friday, July 11, 2025, will highlight the mine's innovative focus: extracting critical rare earth elements and other valuable minerals from coal, rather than solely producing fossil fuel for power generation. This strategic pivot aims to bolster the domestic supply chain for materials vital to renewable energy technologies and national defense.
Rare earth elements, a group of 17 metallic elements with unique magnetic and conductive properties, are indispensable across modern industries. Neodymium and dysprosium are crucial components in the permanent magnets used in high-efficiency wind turbines and electric vehicle motors. Lanthanum is widely utilized in electric and hybrid car batteries, while yttrium and terbium are critical for military targeting systems and other defense applications. Currently, China dominates the global supply chain, accounting for nearly 90% of the world's rare earth production, a dependency that has prompted significant U.S. government and industry efforts to foster domestic alternatives.
Analysis conducted by U.S. national laboratories has confirmed that the coal seams at the Brook Mine contain commercially viable quantities of key rare earths, including neodymium, praseodymium, dysprosium, and terbium. Additionally, the mine is expected to yield critical minerals such as gallium, scandium, and germanium. "We would intend to mine it here in Wyoming, process it here in Wyoming and sell it to domestic customers including the government," stated Ramaco CEO Randall Atkins on Thursday, emphasizing the project's national strategic importance.
The Brook Mine project has been under development for over a decade, initially conceived as a source of subbituminous coal for power plants, a sector that has seen substantial decline in Wyoming over the past decade due to the shift towards renewable energy and cheaper natural gas. The mine's evolution reflects a broader industry trend towards diversifying revenue streams and leveraging existing resources for new purposes. Former U.S. Senator Joe Manchin, who joined Ramaco's board in April, is among the dignitaries expected at the groundbreaking, underscoring the bipartisan interest in critical mineral security.
Ramaco, a public company with metallurgical coal operations in Appalachia, has received significant governmental backing for this initiative. The company secured grants from the U.S. Department of Energy to develop carbon-based products from coal and, more recently, a $6.1 million grant from the state of Wyoming specifically for the construction of a rare earth and critical minerals processing plant. A recent consultant report estimates the full development cost for the mine and processing facility at approximately $500 million, with a projected five-year payback period based on the anticipated sales of extracted rare earths and critical minerals. Ramaco also plans to sell the processed coal as fuel, creating a dual revenue stream for the operation.