Monster Rare Earth Deposit Discovered in Nebraska

Nebraska mine find to challenge China’s dominance of vital rare minerals

Elk Creek, Neb. (population 112), may not be so tiny much longer. Reports suggest that the southeastern Nebraska hamlet may be sitting on the world’s largest untapped deposit of “rare earth” minerals, which have proved to be indispensable to a slew of high-tech and military applications such as laser pointers, stadium lighting, electric car batteries and sophisticated missile-guidance systems.

Canada-based Quantum Rare Earths Developments Corp. last week received preliminary results from test drilling in the area, showing “significant” proportions of “rare earth” minerals and niobium.

Lack of significant rare earth deposits in the US, and the necessity to rely on the Chinese for them in the manufacture of high-tech gear, including military equipment, has been a significant strategic weakness.  The US must allow this deposit to be developed.  I don't even care much if we exploit it heavily, but the notion that we could will keep the prices down, and prevent supply extortion by the Chinese.  Not to mention that it would be good for the economy.

But will the Obama administration permit this development?  Traditionally, the administration has not been the best friend of extractive industries, and has tended to favor the concerns of extreme environmentalists at the expense of industry:

Environmental groups have remained silent on the Quantum project in Nebraska, but rare earths are used in many aspects of “green” technology, including hybrid-engine cars and wind turbines. The Sierra Club of Nebraska has declined to comment on the mine until production begins.

Said Brian McManus, a spokesman for the Nebraska Department of Environmental Quality, “The project is still in early stages, so we don’t have a lot of detail on it.” He added that the permits the company has obtained will help to make sure they stay environmentally cautious.

The U.S. Environmental Protection Agency did not return requests for comment.

Although studies have shown the U.S. has 13 million metric tons of rare-earth minerals, National Mining Association spokeswoman Carol Raulston said it does not mine any of it - partly as a result of the difficulty of obtaining permits.

“One of the key problems that investors tell us about is that the permitting regime in this country is so complicated and time-consuming that it has hurt investments here in the United States,” Ms. Raulston said.

Incidentally, "rare-earth" elements aren't really that rare, they're widely present in most rocks and soils, but they are rarely found at concentrations that permit economical extraction