A challenge for rare earth metal miners

BOISE - Idaho's large resources of rare earth elements, the metals used in a variety of high-tech applications, are well known.

But the process of turning a profit from those metals would be long and costly. Only one company in Idaho appears to be trying.

The obstacles: a lack of financing, a lengthy environmental permitting process, and an overall level of risk that discourages all but the most adventurous.

"Nothing in mining is a safe bet," said Virginia Gillerman, an Idaho Geological Survey geologist who is working on a report about Idaho's rare earth resources. "It's a very high risk venture. Whether it's rare earths or gold, maybe one in 1,000 properties is worth going back to. You're talking millions of dollars."

Demand for rare earths has picked up worldwide because the metals are used in many growing areas such as television sets, weaponry, mobile phones, and renewable energy. Meanwhile, China, which produces 95 percent of the rare earth elements, has been manipulating its exports of the metals, raising concerns about a drop in worldwide supplies.

Accordingly, attention has turned to states like Idaho that have large resources of rare earth metals. A Utah-based company called U.S. Rare Earths, Inc. has staked some claims in Lemhi County in an area believed to harbor very large reserves of rare earths.

It's not clear how much U.S. Rare Earths has invested in its exploration. Company staff did not return calls for this story. But it appears to be the only company with a commercial interest in the Idaho metals, Gillerman said.

Rare earths can be found in many places, not just Idaho. In fact, "rare" is a misnomer, said Scott Wood, the dean of the University of Idaho's College of Science who is a geochemist and rare earth researcher.

"There are concentrations of rare earth in just about any rock you pick up. It's just a matter of whether it's sufficiently concentrated and can be treated metallurgically," Wood said.

Idaho has some highly concentrated rare earth deposits, particularly at Lemhi Pass on the Idaho-Montana border. The problem is that the Lemhi Pass deposits also include large concentrations of thorium, a radioactive element that is expensive to dispose of.

Meanwhile, other sources of rare earths are likely to come on line to compete with China. Gillerman said exploration for the metals has been increasing in Wyoming and elsewhere in the world. A new company is trying to reopen the Mountain Pass mine in California, which closed in 1998. And another mine in Australia is expected to be running in a year or so.

Apart from the financial cost, opening a new mine could require years of environmental permitting. In that time, the market could change.

Permitting time depends on the scale and type of the operation, said Dave Tomten, a geologist who is the EPA Idaho mining coordinator.

A large open pit mine on federal land near a stream with salmon would require a very complicated permitting process with a lot of different agencies involved, Tomten said. A small underground operation in a less environmentally sensitive area would be less complicated.

"The EPA supports mining, we just support responsible mining," Tomten said.

Meanwhile, development of a rare earths mining operation could just as easily happen in a neighboring state or in British Columbia, Wood said.

"It may be the state is a little bit more friendly to mining than some other states, so that might add something that gives Idaho an advantage," Wood said. "But from the pure geologic occurrences I don't think Idaho is particularly better endowed than most of the Rocky Mountain states."