August 22, 2023
Reclaiming Our Potential: PA Rare Earth Minerals
In the historic mining region of Clearfield, Pennsylvania, where the legacy of resource extraction runs deep, Rep. Armanini and Rep. Kephart convened the Pennsylvania House Republican Policy Committee for a hearing concerning immense potential for the Commonwealth. The hearing, divided into two panels, aimed to explore the transformative possibilities of rare earth mineral mining and refinement within once booming mining towns of Pennsylvania’s past. These panels, titled "Explaining Rare Earth Minerals" and "Exploring Rare Earth Minerals," unveiled the immense potential for economic growth, environmental restoration, and enhanced national security through the establishment of a native rare earth minerals industry.
The testifiers that joined the Policy Committee were as follows:
Explaining Rare Earth Minerals
Dr. Pete Rozelle, Ph.D. - Advisor, Pennsylvania State University College of Earth & Mineral Sciences, Retired Program Manager, U.S. Department of Energy
Dr. Sarma Pisupati, Ph.D. - Professor of Energy & Mineral Engineering: Professor of Chemical Engineering, Director of the Center for Critical Minerals, Pennsylvania State University
Exploring Rare Earth Minerals
Anthony Marchese - Chairman, Texas Mineral Resources Corp
James Swistock - President and Co-Founder, Penncara Energy, LLC
The testimony of the day began with distinguished experts who shed light on the critical role of rare earth minerals in shaping modern technologies. Dr. Pete Rozelle, a retired Program Manager from the U.S. Department of Energy and Advisor to Pennsylvania State University, provided a comprehensive overview of these 17 vital rare earth elements. As components in smartphones, computers, defense systems, and more, rare earth minerals are the backbone of our technological advancement.
In his testimony, Dr. Rozelle underscored the intricate connection between rare earth minerals and the stability of critical infrastructures such as the electric grid, energy storage, and cybersecurity. Notably, he highlighted the potential revenue generation from mineral production, offering a means to fund land reclamation initiatives while simultaneously making use of decades of mining waste. Before significant extraction efforts can begin, Dr. Rozelle emphasized that further geologic exploration is essential in attracting private investment and unlocking Pennsylvania's potential as a rare earth minerals hub. What was once an abandoned coal mine can be revitalized and find a new life as a rare earth mineral mine, all the while employing a similar workforce to the coal mines of the past.
“The same skillsets in producing coal tie in directly with rare earth minerals.”
Dr. Pete Rozelle, Ph.D.
Advisor, Pennsylvania State University College of Earth & Mineral Sciences, Retired Program Manager, U.S. Department of Energy |
Dr. Sarma Pisupati, a Professor at Pennsylvania State University and Director of the Center for Critical Minerals, began his testimony by presenting an alarming fact: the U.S. relies entirely on imports for 15 out of 51 minerals crucial for manufacturing and industry. These crucial minerals comprise components within all our modern technologies, with 1KG of minerals needed to construct a hybrid car, and a half ton of minerals needed to produce an f35 fighter aircraft.
China, which accounts for more than 80% of America’s rare earth mineral imports, dominates the rare earth market and underscores the urgency of domestic resource development. At any moment China may choose to limit exports of these needed resources, and there are no US-based producers to meet our nation’s demand.
Dr. Pisupati discussed innovative techniques to extract rare earth minerals from diverse sources such as mining waste, acid mine drainage, and coal refuse – all byproducts of PA’s rich mining past. America does not have primary rare earth ore reserves, also known as reserves that can be mined through traditional means, and thus will need to utilize secondary sources to meet native demand. Secondary sources utilize the byproducts of mining operations of the past, namely coal refuse piles and acidic waters. These secondary source approaches not only contribute to environmental cleanup but also offer a sustainable path towards material acquisition. His testimony highlighted the convergence of environmental restoration and economic advancement that a rare earth minerals industry can bring to Pennsylvania.
“You can’t grow solar panels; you need to mine for them!”
Dr. Sarma Pisupati, Ph.D.
Professor of Energy & Mineral Engineering: Professor of Chemical Engineering, Director of the Center for Critical Minerals, Pennsylvania State University |
| Exploring Rare Earth Minerals |
Anthony Marchese, Chairman of Texas Mineral Resources Corp, delivered a candid assessment of federal policies that prioritize processing over upstream production of rare earth minerals. His corporation mines for rare earth minerals in primary reserves found in the mountains of Texas, but growth in his enterprise has been difficult. He urged a reevaluation of the opposition to domestic mining, emphasizing the environmental disparities between foreign and domestic sources. Marchese advocated for the utilization of latent resources within old waste coal and refuse, showcasing a promising avenue to extract rare earth minerals. Currently, the federal government provides some incentive for refining rare earth minerals, but little to no incentive for the actual mining necessary to bring the ores to market. He called for increased public awareness of the indispensability of these minerals and proposed government-sponsored pilot plants to stimulate private investment and expedite industry growth.
Mr. Marchese warned that US industries and our military industrial complex are too comfortable with the status quo. So long as rare earth minerals continue to be provided by China, and the lax environmental regulations of abroad do not impact our soil, there is no desire to onshore mining and refinement at the scale our country requires. He urged environmental groups, corporations, and the federal government to stop turning a blind eye to the mines overseas and instead encourage local production where proper environmental regulations and civil rights will be upheld. The comforts felt by the regular importation of the rare earth minerals we need today can be gone in an instant, and we have no current means to meet US demand. We cannot continue to be at the whim of other nations, nor allow our country to be dependent on the good will of foreign adversaries.
“The United States needs to take more of a lead in this area.”
Anthony Marchese
Chairman, Texas Mineral Resources Corp |
James Swistock, President and Co-Founder of Penncara Energy, LLC, testified to the potential of his company's innovative coal transformation process. Swistock's unique approach, converting coal into pitch, has profound implications for the creation of modern technologies. The pitch serves as a key ingredient in battery anodes, nuclear grade graphite, carbon fiber, solar panels, semiconductor chips, and more. Swistock emphasized the significance of domestic pitch production to bolster national security and supply chain reliability, especially considering that the US consumes 30% of all global pitch production but only produces 3%. His readiness to establish a new pitch plant, with the right support, highlights the actionable steps needed to materialize a thriving rare earth minerals industry in Pennsylvania. The research needed to begin his venture is complete, the resources for his products are readily available within the Commonwealth, and now all that remains is the production of a refinement plant. This plant, if all goes smoothly, could be up-and-running is as little as 15 months.
Swistock also called for regulatory amendments to underscore the importance of fostering an environment conducive to remining and reclamation, enabling both environmental restoration and economic progress. The largest impediment to using abandoned mines is the liability incurred by new operators for the existing water quality. New miners must atone for the errors of the past, and forcing new mines to address past water issues while complying with modern water treatment regulations is a near-impossible hurdle to contend with. Current regulations and public perception of mining is impeding growth throughout the state. In fact, James is wary of even mentioning that he works with “coal” due to the negative connotation, and instead explains that his industry works with “carbon ore”. His industry is absolutely necessary for the continuance of the world we’ve become accustomed to.
“The industry wants to grow and prosper, but you can’t do that with a boot on your neck!”
James Swistock
President and Co-Founder, Penncara Energy, LLC |
To conclude, the hearing illuminated the importance of establishing a robust rare earth minerals industry here in Pennsylvania. This industry holds the potential to drive economic growth, restore the environment, and enhance national security by reducing reliance on foreign resources. The expert insight shared during the hearing underscores the path forward, tapping into Pennsylvania's rich history of mining to forge a prosperous future fueled by innovation, sustainability, and strategic resilience.