A rare earth mineral mine in southeast Nebraska has taken a significant step toward full operation.
Workers at NioCorp’s Elk Creek mine in Johnson County officially broke ground on its portal over the weekend, which puts the project about four to five months ahead of schedule.
During a virtual shareholder meeting on Monday, NioCorp CEO Mark Smith said the initial digging is a good sign, but patience will be key in breaking into international markets.
“We are on the road to shoring up multiple supply chains that China certainly controls for the most part,” he said. “All these things take time. You don't establish supply chains in a matter of days or weeks. Our project is going to take three years to construct, and then we will start production.”
That puts completion of the mine squarely in 2029, if all goes according to plan.
The overall cost of the project is expected to reach $1.2 billion. NioCorp has independently raised over $100 million, and is working on getting $780 million from the Export-Import Bank of the United States to complete the mine.
NioCorp expects the mine to provide a much-needed source of niobium, scandium and other rare earth minerals domestically.
The United States keeps a stockpile of these minerals, but is almost entirely dependent on imports to bring them into the country.
Smith said the domestic need for the minerals is only increasing, and feasibility studies show the Elk Creek mine could satisfy those needs.
“The Department of Defense needs more samarium," Smith said. "They need more yttrium. So with the proper agreements, we could very easily produce things like samarium and yttrium from this ore body as well.”
Yttrium is used for lasers, and samarium for heavy-duty magnets. Niobium is used in steel and alloy manufacturing.
Niocorp has spent more than 15 years trying to develop the mine on land in Johnson County, about 65 miles southeast of Lincoln. It is still waiting on a final feasibility study before it can move forward and secure federal funding, but Smith said he’s heard nothing but support from government officials.
“When I go to D.C. to meet with both sides of the aisle on this project, I hear nothing but overwhelming support,” he said. “We provide multiple minerals and products that this country needs today, and we have one of the shortest timelines to get to production.”
Smith added that the groundbreaking is timely, as President Donald Trump is planning on meeting with China’s President Xi Jinping next month.
“I think the strong message that our president can give to China, or any country for that matter, is that we have the resources in our own country," he said. "We have the ability to establish these supply chains, and we are undertaking that with just immense urgency at this point in time.”