Ramaco Resources (NASDAQ: METC, METCB) has entered into a non-binding memorandum of understanding with REalloys Inc. (NASDAQ: ALOY), an Ohio-based rare earth company, to establish a strategic relationship to complete due diligence and finalize an offtake agreement aimed at bolstering a US domestic rare earth and permanent magnet supply chain.
Ramaco is developing critical minerals and rare earth elements at its Brook mine in Wyoming, which it says holds what is believed to be the nation’s largest unconventional deposit of rare earth elements and critical minerals sourced from coal and carbonaceous ore.
Brook is America’s first new rare earth element and critical mineral mine in over 70 years, and it will be initially focused on the vertically integrated production of commercial oxides. Full-scale mining and construction of a pilot processing facility are underway at the mine located near Sheridan, the company said in January.
This MOU contemplates that Ramaco would provide REalloys with a supply of mixed rare earth carbonate (MREC) from the project.
REalloys would then perform separation of the Ramaco feedstock into various rare earth oxides at its Saskatchewan Research Council (SRC) facility in Canada.
The MOU also contemplates that Ramaco would supply its own separated scandium oxide from its Brook Mine critical mineral refinery for alloy metallization at REalloys’ Euclid, Ohio facility.
“Ramaco is proud to pursue a future partnership with REalloys to supply domestically sourced mixed rare earth carbonates and scandium oxide that could underpin a resilient, ex China permanent magnet supply chain,” Ramaco Resources CEO said Randall Atkins said in a news release.
“We are progressing to position the Brook mine to potentially deliver both reliable MREC feedstock tailored to REalloys’ SRC separation facilities as well as our own scandium oxide for REalloys’ metallization process.”
A 2025 Brook mine showed a post-tax net present value (at an 8% discount rate) of around $1.2 billion and an internal rate of return (IRR) of 38%, with a total initial capital cost estimate of $473 million (excluding a 22% capital expenditure contingency).
