Pub 9 2021 Issue 1

off the ground. Step 1 is already happening in Georgia and elsewhere. We are about to start step 2 at the White Mesa Mill. Steps 3-5 need to be constructed, but we think we can also install those capabilities at the White Mesa Mill very economically and quickly in the coming years. We think we can be lower cost than any other non-Chinese sources of rare earths, and pos- sibly cost-competitive with China, because we will be producing rare earths from high- value monazite at existing facilities. How far into processing monazite are you? So far, we have processed four metric tonnes of Chemours monazite at the White Mesa Mill — and we’re very pleased with the results. We are scheduled to start commercial production of a mixed rare earth carbonate later this quarter. At that time, we will have restored step 2 back to the U.S. However, the U.S. doesn’t yet have steps 3, 4 and 5. So, for the next couple of years, we expect to sell our intermediate rare earth product to separa- tion facilities elsewhere in the world, likely Europe. However, as mentioned above, we are working on incorporating those next steps into the White Mesa Mill. Before you came on the scene, where was U.S. monazite going? In the past, Chemours put their monazite on a train from Georgia to a port on the West V Continued from page 11 Coast, put it on a ship, and sold it to China. Now, we’re buying it and processing it, making sure this valuable rare earth resource stays in the U.S. As mentioned above, our product will likely leave the U.S. while separation and other downstream processing is developed in the U.S. over the next couple of years. But this will just be a bridge for us. We want to keep these rare earths mainly in the U.S., including for high-tech manufacturers in Utah. We are initially purchasing a minimum of 2,500 tons of monazite ore per year from Chemours. This ore contains roughly 55% total rare earths and 0.20% uranium. Amaz- ingly, close to ten percent of U.S. rare earth demand is contained in this small quantity of monazite. A little bit truly goes a long way, and because over 50% of the ore contains recoverable product, very little waste is generated compared to traditional uranium mining. Incidentally, monazite also contains some thorium. We’ve already been contacted by folks in the pharmaceutical industry interested in thorium for advanced cancer treatments. It’s very early days, but this is yet another potential social benefit of our rare earth production. Restoring domestic rare earth capabilities is a bipartisan goal. It is unacceptable to both Democrats and Republicans that we are so dependent on China for rare earths. The White Mesa Mill can produce rare earths in a safer, cleaner, and more environmentally sound manner than anyone else in the world. Any company concerned about envi- ronmental and social responsibility needs to be concerned about their supply chains. We think we will solve this issue in rare earths. What are your future plans for White Mesa Mill? Well, we’re ramping up commercial pro- duction of rare earths and uranium from monazite in the next few months. And, in the next two to three years, we plan on implementing a fully integrated rare earth supply chain, including separation and other downstream rare earth manufacturing. We’ll be adding 12-15 good jobs this year at the White Mesa Mill. If we are successful with our future plans, we think we can create more than 100 clean tech jobs in San Juan County, Utah. This will be an array of good-paying jobs with benefits, from technical positions to those requiring advanced degrees. As I mentioned above, we are turning southeast Utah into America’s clean energy and critical mineral hub. We already produce uranium, which is used for the production of emission-free electricity. We also produce vanadium, which has applications in con- struction, aerospace and grid-scale batteries to store renewable energy. We are helping to clean up the legacy of Cold War era, govern- ment-sponsored uranium mining. We recycle uranium and vanadium, which reduces the need for mining and helps address climate change. And now, we are close to bringing rare earth production back to the U.S. Energy Fuels and our White Mesa Mill in Utah might be the most exciting clean energy story in the U.S. today. X Incidentally, monazite also contains some thorium. We’ve already been contacted by folks in the pharmaceutical industry interested in thorium for advanced cancer treatments. It’s very early days, but this is yet another potential social benefit of our rare earth production. MINING 12