by Michael Howell
U.S. Critical Materials, the Salt Lake City based company that is proposing to mine Rare Earth Elements (REE) in the headwaters of the West Fork of the Bitterroot River, announced in a December 4, 2024 press release that Phase One of the company’s Cooperative Research and Development Agreement (CRADA) with Idaho National Laboratory (INL) has been completed. This phase involved studying, testing, and confirming the gallium and other critical minerals content at the U.S. Critical Materials Sheep Creek Deposit.
“Simultaneously,” it states in the release, “INL had a team of scientists, engineers, lab technicians, and critical mineral experts begin to explore ways to create a separation and process system for the Sheep Creek ore. The next phase is being structured to cover the next 2 years of continued development of multiple separation and processing technologies.” The U.S. currently has no separation and processing technology.
According to the press release, the Scope of Work of the CRADA between U.S. Critical Materials and INL includes identification of materials handling, beneficiation, and separations technologies for carbonatite ore handling, preparation, and extraction of targeted, value-added metals.
“The U.S. has very little commercial rare earth processing capabilities,” said Jim Hedrick, President of U.S. Critical Materials. “This research agreement, and the tech that will be developed, will help advance U.S. rare earth processing proficiency. Not only is our gallium high grade, but we are also confident that working together with Idaho National Laboratory, we will be able to create a proprietary separation process that will be environmentally respectful.”
Gallium is one of the three critical minerals, along with germanium and antimony, that China has recently banned from exporting to the United States. A recent article by Bowen West (NBC Montana, Dec. 25 2024) discussing China’s recent embargo quotes Atlantic Council China Hub Nonresident Senior Fellow Dexter Roberts saying, “China is very aware that the U.S. is very reliant on Chinese critical minerals and this would be a good way to hit back against the U.S. … What we’re seeing right now is a tit for tat retaliation between China and the U.S.”
The U.S. isn’t alone on this front, according to West. The past two years has seen the formation of the Minerals Security Partnership, with Australia, Canada, Estonia, Finland, France, Germany, India, Italy, Japan, Norway, Republic of Korea, Sweden, United Kingdom and the United States creating a network to share access to a critical mineral supply chain.
According to data from Montana Bureau of Mines and Geology, gallium is a byproduct of aluminum (Al) and zinc (Zn) mining, with zinc ores being the main source. Recycling also plays an important role.
Potential domestic resources in zinc ores are primarily from sphalerite deposits and sphalerite-bearing skarn and polymetallic vein deposits, which are found in Western Montana, particularly in the Butte and Philipsburg areas.
West quotes Montana Bureau of Mines and Technology Director John Metesh saying, “We’ve all convinced ourselves that the critical mineral list isn’t just a list of possibilities but they’re becoming probabilities. The opportunities because of this are really exciting.” West mentions U.S. Critical Materials and Bolt Metals Corporation as two companies seeking to take advantage of these opportunities but states that when NBC Montana reached out to both companies for information on future mining projects they were denied interviews.
West goes on to quote Metesh saying that other countries “can produce things much cheaper but at what cost? A very high environmental cost but then also, their labor force has no personal protection and things like that.” West goes on to note that Montana is playing a part with old mines bringing new opportunities of reprocessing waste.
Mark says
Regardless of the shell game the corporations play, the bottom line is Montana ends up being the garbage can. If you’re in denial about the toxic crap left behind I suggest you have a glass of water from the pit in Butte. But with the mentality of “drill baby drill”, how can you win.? And no I”m not a liberal or an extreme environmentalist.
Nicole Jung says
I couldn’t agree with you more. It is a very, very scary, sad time we’re living in.
Rachel Winn says
Hi Gary, my name is Rachel Winn, and I am the Director of Operations for US Critical Materials Corp. Thank you for your comment and also for the opportunity to clear up this misinformation. We are a true US Corporation. We are incorporated in the state of Nevada identification# NV20212075771. You can also see that we are a private company. If you have any further questions or comments, please feel free to message me through the portal on our website: www.uscriticalmaterials.com.
The rare earth resources we have found will be used for the benefit of the United States.
Gary says
Hi Rachel. So, you are stating that multiple reports released in 2023 from reputable news organizations such as the Missoulian and the Montana Free Press that detail this intricate web of business associations are completely false and your company has never had any business dealings with Canadian investors and/or companies? And that press releases that are available on US Critical Metals Corp website (which is publicly traded Canadian company) that detail its stake in this claim are also completely false? Because if that is in fact true then I guess your company has some liable cases to pursue. Or are you stating that your company has since restructured your business dealings due to the bad PR received from these reports? Also, the statement that these resources will be used for the benefit of the US is a moot point. Chinese owned companies also provide resources for the benefit of the US. That is much different from the US having control of its supply chains without any foreign involvement.
Gary says
Let’s be clear that this IS NOT A TRUE U.S. COMPANY
They are intentionally deceiving the public with their name and business dealings. Which is a huge red flag. This company is a shell company for another Canadian Mining company also with another intentionally misleading name U.S. Critical Metals which in its own press releases admitted that they are “a private mining company incorporated under the laws of British Columbia and with its head office in British Columbia.” U.S. Critical Metals merged in 2022 with Canadian holding company Holly Street Capital. Holly Street Capital, in turn, is a “portfolio company” owned by Vancouver, British, Columbia-based Resurgent Capital.
Furthermore, the CEO Geoffrey Williams and Director Ed Cowle have a history of fraudulent activity. Court documents show that “about August 27, 2012, (U.S. Rare Earths) dismissed Defendants Williams and Cowle from the Board of Directors on the ground that they had allegedly violated federal law and otherwise allegedly breached fiduciary duties.” The company later retracted that claim as part of a settlement with the pair and others.
I am not against mining per se. But I am against blatant deception and fraudsters which is 100 percent what this company is. If we want to secure domestic sources of critical minerals, we must do so with an actual U.S. company with a more reliable history than this one. What sense does it make to allow foreign controlled companies to “secure” our domestic supply chains?
Frankie McCormick says
I whole heartedly agree