In 2011, former Wall Street banker Randall Atkins made a bold move. He bought an old coal mine outside Sheridan, Wyoming, for about $2 million without even seeing it first. He hoped it might make a small profit, but what he found was extraordinary instead.
As The Wall Street Journal reported, Atkins recently discovered that his Brook Mine contains one of the largest unconventional rare-earth deposits in the U.S., potentially worth a staggering $37 billion after government researchers tested the ground and found significant amounts of rare-earth elements.
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“When I bought the mine, I didn’t know the difference between rare earths and rare coins,” Atkins admitted. The test results revealed the mine holds rare earths like neodymium, dysprosium, terbium, and praseodymium, essential for modern technologies like electric vehicles and wind turbines.
Ramaco Resources, Atkins’s company, is now extracting larger samples for further analysis. If successful, this could be the first new rare-earth mine in the U.S. since 1952 and a big shift for Ramaco, which has traditionally focused on mining coal used in steelmaking.
The U.S. is racing to catch up with China in the supply of these critical minerals. China recently restricted the export of minerals like gallium and germanium, which are used in semiconductors and missile systems. Interestingly, these minerals were also found in the Wyoming mine.
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Atkins, who learned long-term strategic planning from his father, Orin Atkins, the builder of Ashland Oil, sees huge potential in this discovery. “We prefer going in that direction,” he said, noting the higher value of rare earths compared to coal.
Signia Capital Management, an investment firm, has increased its investment in Ramaco, excited by the rare-earth discovery. Ramaco’s shares have surged, and even more so after WSJ reported on it, reflecting the high hopes for this new venture.
Atkins, who grew up in Kentucky and has a background in energy and banking, is optimistic about the future. He hopes this project will benefit the local community economically and secure a lasting legacy. Saying of his father, “If I could build something even remotely as successful as he had over his tenure, I would be very happy.”
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Who Was Orin Atkins
Orin Atkins, the father of Randall Atkins, was a prominent figure in the energy industry, known for building Ashland Oil into a multinational conglomerate. However, he was implicated in a series of federal investigations.
One of the major controversies involving Orin Atkins was related to an illegal payment to President Richard Nixon’s 1972 reelection campaign. This was part of the broader Watergate scandal, which involved various illegal activities and cover-ups by Nixon’s administration. Atkins and Ashland Oil were implicated in making a covert contribution, which violated campaign finance laws.
Orin Atkins died in 2007.
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Why Are REEs So Valuable?
These elements have unique properties that make them perfect for a wide range of applications, such as strong magnets, LED lights, and smartphone screens. They are crucial for many advanced technologies, including electronics like computers and phones, green energy solutions like wind turbines and electric cars, and important defense systems.
Even though REEs are not extremely rare in the earth, they are difficult to find in large, easily accessible quantities. Extracting and processing them is complex and costly, which limits the supply. Meanwhile, demand is increasing rapidly because of the growing tech industry. This imbalance makes REEs very valuable.
The U.S. wants to secure its own supplies of these elements to avoid relying too heavily on China, which currently dominates the market. Many don’t know that REEs are important for consumer products and national security.
Wyoming is experiencing a rare earth element boom driven by the discovery of large deposits, significant economic potential, national strategic importance, and increasing industry and investor interest. This boom could position Wyoming as a key player in the global REE market.
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This article Wall Street Banker Bought Coal Mine For $2 Million, Found $37 Billion In Rare Earth Elements originally appeared on Benzinga.com
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