Commissioners oppose ‘fast-tracking’ of rare earth mine

by Michael Howell

On Monday, December 1, at a standing-room-only meeting with an estimated 700 Bitterroot valley residents in attendance, the Ravalli County Commissioners unanimously agreed to send letters to Montana’s congressional delegation and Governor Gianforte urging them to help in removing the Sheep Creek Mine project from the federal government’s FAST-41 Transparency list.

At the meeting, U.S. Critical Materials representative Scott Osterman began by commenting on the company’s lack of communication with the commissioners and the public to date. “But that is simply because we have not had a full understanding of what our operation might be,” said Osterman. “And so, I have to apologize. But also, now since we signed the FAST-41 agreement on the transparency portal, it’s time for us to tell you what the plan is.”

He said being listed on the FAST-41 list does not change anything. “It doesn’t change NEPA [National Environmental Policy Act],” said Osterman. “It doesn’t change any of the other requirements the federal government has to get the permitting through.” He described the project as one focused upon “expanded exploration, not mining.” He said the site was previously explored in the 1950s and 1960s. 

“The U.S. currently relies heavily on foreign and geopolitically unstable sources of gallium and other critical minerals,” said Osterman. “As a matter of fact, 98.7% of gallium comes from China. 100% of samarium. Those minerals are critical for our national defense. Without them, a lot of military equipment will not work.”

Osterman was apparently referring to gallium that has already been refined or processed. China processes most of the world’s gallium. The U.S. actually obtains ore containing gallium from several sources, mostly from Japan, and sends it to China for processing. According to a U.S. Geological Survey report, the U.S. in 2023-2024 obtained 24% of its gallium from Japan, 19% from Germany, 19% from China, 17% from Canada and 21% from other sources. In 2024-2025, China’s supply dropped to 8% and Japan, Germany and others “filled the gap.” 

Osterman said his company was advancing exploration at the Sheep Creek site to “give us the true value and extent of the existing minerals and we are committed to doing that exploration in an environmentally safe fashion.” He said the project would create jobs and that the average job in the mining industry earns $85,000 to $130,000 a year.

“We have all seen the ebbs and flows of tourism and other industries,” he said. “Mining, if it ever gets to that point, is one that is a very stable industry and can continue for many years into the future.”

“Supporting Sheep Creek does not mean abandoning environmentalism and conservationism,” said Osterman. “The unique nature of Sheep Creek and the geology that’s there allows us to easily support environmental conservation while supporting national security and resource responsibility.”

Osterman said a common misunderstanding was that Sheep Creek would be an open pit mine. 

“It cannot be because it is not geologically formed to be an open pit mine. It will be underground,” he said. 

With respect to concerns about radioactive contamination, he said that the levels of thorium at the mine averaged 200 ppm, far below the Nuclear Regulatory Commission’s trigger point for regulating materials, which is 500 ppm.

As to concerns about water, he said, “The mine of the future is far different than the mine of the past. Future mining uses water and recycles it and if water is put back into the environment it is usually cleaner than the water that exists there. We will do everything we can to monitor, to mitigate, and to ensure that nothing ever happens. Now that is not a promise, that’s a commitment. Lots of people can make promises, but we are committed to monitoring environmentally everything that’s going on.”

He said there will be no rare earth or gallium processing on the site and no chemicals used and that independent testing by the Idaho National Lab has not identified asbestos at the site.

Osterman said that his company was willing to engage the community in what is called a Good Neighbor Agreement in which the company and concerned members of the public work out the details of the operation in a way that everyone would be comfortable with moving forward.

Commissioner Jeff Burrows asked if U.S. Critical Materials was willing to hold or ask to pull their FAST-41 listing while that Good Neighbor advisory group was being formed.

“The way we understand the FAST-41 is that it allows for all of that to take place and that public comment and engagement is within the process,” said Osterman. “So it doesn’t change the process. It’s not designed to skip any of that. And the answer to that would be that we are following the process that the government has told us to follow, and I think we follow the exposure process of communicating with all of the individuals here that want to have communication and transparency here and we are going to do that.”

“I feel like we should have been reached out to about this at some point as well,” said Burrows. “We are talking about multi-million dollars just in road infrastructure that we don’t have a budget for right now. Our roads are in disrepair and if you start talking about somewhere between 30 and 5,000 trucks a week coming out of the West Fork, we can’t afford that. So I’m a little disappointed that you haven’t reached out to us earlier and now we are going on the fast track. How can we work with you and the community to help resolve some of these impacts here?” 

“I think the process should allow time to do that,” said Osterman, “and so there’s no reason why we wouldn’t have the communication and engagement and transparency that you need for us to continue the dialogue and for you to have what you need to go forward. So, my request would be, let’s get that going. Let’s open that up so that you get everything you need before you make your decision as to whether you oppose or not oppose or whatever. Let’s get it all out on the table.”

“Unfortunately, that process starts tomorrow,” said Commissioner Greg Chilcott. “I know normally that the process can take an ungodly long time to get through. But this is something that we need those assurances, those protections, those guarantees. Whenever it goes too quickly, things get to be missed, overlooked, and that’d be something that I am just not willing to gamble on. So how do we do that?”

A lot of questions followed about the mining process including potential impacts on the road system in the county and about the water required by the mine, and impacts on the environment from the proposed mine.

“I’m not trying to skirt your questions,” said Osterman. “The answer is that it is somewhat unknown. At a full-scale mining operation, I would think that we will be helping build roads and bridges and everything else like that and economically supporting that.” 

“My last request,” said Osterman, “is not just to you but also to the Friends of the Bitterroot and Bitterroot water organizations to share our desire to be a corporate sponsor to support and acknowledge the very same concerns you have in how our future operations will develop. Most likely we will have shared goals. But until now, for better or worse we have not communicated in a way that either reflects or reveals our goals and how they align with yours. We want this to be an asset to Ravalli County and to the communities and all the people that are here that share all the same concerns that we do sitting here today.”

Dr. Phillip Ramsey, manager of the MPG Ranch and a scientist with years of experience in mining reclamation efforts on the Clark Fork River and founder of the Bitterroot Clean Water Alliance in opposition to the mine, was invited by the commissioners to give a rebuttal to the company’s proposal.

“Let’s take a look at the company first,” said Ramsey. “It was formed from a company called Resurgent Capital based in Toronto which formed another company called Holly Street Capital. Resurgent advertises on its web site that it forms shell companies. Holly Street then formed another company called U.S. Critical Metals and they advertise Sheep Creek as their project right now. Then another company comes along calling itself U.S. Critical Materials that was formed by U.S. Critical Metals.”

A shell company is a legal entity with few or no active assets or business operations. While shell companies can be a useful tool for certain legal financial and corporate strategies, their potential for misuse makes them a subject of intense scrutiny by law enforcement and financial regulators, according to sources like the Legal Information Institute (LII) and NorthRow.  

“These shell companies line up one after another,” said Ramsey. “They cover each other and they are designed to disappear when any problem shows up.”

The shell game got even more complex when these two last mentioned companies got together and spawned yet another business, U.S. Rare Elements Corporation. The partnership was announced in Vancouver, Canada in a news release in 2022.

“This company [U.S. Critical Materials] has presented a pretty slick pitch but we need to circle back to the facts and what matters,” said Ramsey. “We need to talk about water and the risks. These companies have been prospecting in our headwaters since 2022. There’s no local office. No regular briefing. No full data release. If these companies want our trust they should slow down and take themselves off the fast-track list.” 

He points to major discrepancies in what the companies are presenting to potential investors and what they have presented at the meeting. He said the pitch to investors points frequently to Mountain Pass Mine and China’s Bayan Obo mine. These are both big open pit mines on a huge scale.

“They even spoke in their opening remarks about dikes and open ducts,” said Ramsey. “That’s a pitch for an open pit mine. But today we have a new plan with underground mining and back filling.” 

“ It would be the first underground rare earth element mine in U.S. history with untested technology,” said Ramsey. “It’s also just an odd thing to propose to do. Hard rock mining is more expensive and yields less than surface mining and what they are proposing to do is really a lot of work for common stuff sitting around in mine waste dumps all over Montana. So far, this proposal sounds more like a plan to mine the U.S. Treasury for grant money than an actual mining plan.”

Regarding the thorium claims, Ramsey said the company submitted 164 rock samples to labs in Ontario and posted results on their web site.

“Contrary to the frequently repeated claim that the deposits are low in radioactive thorium, all of the samples with the highest radioactive concentration were way over 500 ppm which is the trigger for the Nuclear Regulatory Commission to regulate thorium,” said Ramsey. “The reason that the average is low is that there’s a lot of samples in this batch that are just rocks. The ore is high in thorium. And saying that it is not, over and over again, doesn’t change the fact that it is going to be high in thorium and they are going to be handling radioactive thorium in the watershed.”

The samples also show that the ore is high in lead and arsenic, said Ramsey. 

“Arsenic and lead are the real unaddressed river killers here. Their own data shows that the REE concentration is highly correlated with both. It doesn’t build trust to sweep this back under the rug. Rain and snowmelt seeping through the mine shafts backfilled with waste rock will contaminate the ground water. Safe back filling is a PR slogan.” 

“If they want to claim that there is no asbestos there, they need to present the data,” said Ramsey.

“Public releases of this Vancouver-based company can also buy up to 75% of these critical materials. We have no assurances that off-taken processes will occur in the U.S.,” he said. “Our headwaters are not the place for an experiment. We need to see data and this company should take itself off of the fast-track list.” 

Heather Barber, Executive Director of the Bitterroot Water Partnership, also addressed the Commissioners. “This mine will be seated above the Painted Rocks Reservoir at the very headwaters of the West Fork of the Bitterroot River. The company behind the proposal, U.S. Critical Materials, has not to my knowledge and as they have acknowledged today, had any meaningful engagement with our community.” 

“I personally contacted a representative on two separate occasions in October and again in November seeking information and conversation, receiving no response. We heard today it was because there was not a plan, but I would have welcomed that information during a conversation,” said Barber.

According to Barber, in 2023 tourists spent $7.5 million on guiding services alone with the tourism industry as a whole bringing in $67 million annually. She said the Bitterroot River supports 1,400 farms and ranches generating $33 million annually. She said both these industries rely heavily on the water stored in Painted Rocks Reservoir and income they generate is worth far more than the 40 to 50 jobs that the mine might generate.

She noted that the proposed mine is only 13 miles from the Painted Rocks Reservoir and some of the highest deposits are just 200 yards from the river. “The pollution that could occur here would have an outsized impact on a world class wild trout fishery, a cultural, ecological and economic treasure that drives tourism and recreation and property values,” said Barber. “Once water is contaminated, the damage is often irreversible and there is no proven example of a rare earth mine done without creating long term harm.”

“In the Bitterroot we do not live on rare earth minerals,” said Barber. “We live on public lands and healthy rivers. We live for hunting and fishing, floating and bird watching, farming and ranching, recreation, tourism and local business… Sheep Creek, the West Fork, the Bitterroot valley are more than just a geographic anomaly or opportunity for a company, they are our home.”

Several dozen members of the public spoke in support of removing the Sheep Creek Mine project from the FAST-41 Transparency list and in opposition to the proposed exploration work and the mine.

The Commissioners unanimously approved sending the letters opposing the FAST-41 listing. In their letters to the governor and Montana’s congressional delegation, the Commissioners stated, “We are writing to express our strong opposition to adding the proposed Sheep Creek Mine in Ravalli County, located in the headwaters of the Bitterroot River to the ‘FAST-41’ program. We absolutely believe that the review process should include input from state and local government and the citizens/public. We urge you to use your influence to support a thorough environmental review and to resist moves that could greenlight this project without full consideration of its risks to Western Montana, Idaho and Washington.”

They expressed concerns about water quality and supply risks, ecological and wildlife impacts, transparency and public participation, long term economic and cultural costs, precedent and federal responsibility, and local impacts and asked them to:

• Publicly urge the Forest Service to require a full EIS rather than allowing shortcuts or categorical exclusions.

• Encourage environmental protections for the Bitterroot and Clark Fork watershed and to reject any weakening of laws that safeguard water, wildlife, and public lands.

• Hold U.S. Critical Materials accountable: insist that they engage transparently with state, local government, communities, conservation groups, and federal agencies.

• Monitor developments closely and communicate with your constituents about the status of this proposal and any actions you take on our behalf.

Concluding, “This issue is not just about mining – it is about protecting our water, wildlife, infrastructure and way of life in the Bitterroot Valley for future generations. We hope you will stand with your constituents and advocate for the strongest possible environmental review and safeguards.” 

For a complete copy of the letter to the governor go to:

https://1drv.ms/w/c/e2cc2147bb66782a/IQDRJOSyHxhgRreszvaqVQepAckKxUgRk44BvR8V1Tlaoy8

This reporter emailed U.S. Critical Materials on November 23 seeking information about the FAST-41 listing and received a reply from Eric Levy-Meyers on November 25, stating:  

“Thank you for reaching out. I have been following your writing on environmental issues in Montana and found them most informative. I appreciate that we share the values of protecting Montana’s environment. I would welcome the opportunity to have a conversation with you about such topics.

“I am out pocket this week… Can we try for Friday next week? I will be pulling in Scott Osterman into the call since he is a Native Montanan, former Montana Sec. of Commerce and avid outdoorsman that has been supporting our project. 

“I will send some read-aheads to you as background next week that may clarify some misunderstandings that I have seen in the reporting of others.”

In the meantime, the commissioners’ meeting was held on December 1, the company was placed on the FAST-41 Transparency dashboard on December 2, but as of December 6, no “read-aheads” have been received and no phone call interview has yet been arranged. 

Members of Montana’s Congressional delegation have released the following statements in response to this issue:

Sen. Tim Sheehy: “I strongly support unleashing Montana’s resource economy and mining industry. I also believe local voices must be heard loudest when considering public lands policy. Regarding the Sheep Creek Mine, local Montanans have made their opposition clear, therefore I oppose efforts to approve the proposed Sheep Creek Mine and encourage the Permitting Council to remove it from their fast-track.”

Sen. Steve Daines: “We must increase critical mineral mining but in a responsible, locally driven way. Unfortunately the developers of Sheep Creek Mine didn’t engage w/the local community. Until they do, I can’t support the project & call on the admin to ensure transparency and local engagement in the permitting process.”

Rep. Ryan Zinke: “Montana knows better than anyone there’s a right and wrong way to mine. Fast tracking a mine with overwhelming public opposition and bypassing the mechanisms that allow for transparency and accountability is the wrong way to do it. Ravalli County officials and residents have been clear in their concerns and opposition to this project. It has fallen on deaf ears and they have received no communication from the company. I urge the council to remove Sheep Creek from the FAST 41 process.”