UCore, Materion team up to apply for U.S. military rare earths funding

Texas Mineral Resources

23/12/2019 14:00

Dec 23 (Reuters) - Rare earths miner UCore Rare Metals Inc
 UCU.V  and manufacturer Materion Corp  MTRN.N  said on Monday
they will form a consortium to jointly apply for U.S. military
funding of a rare earths processing plant. 
    Reuters reported earlier this month that the U.S. Department
of Defense plans to fund construction of rare earths processing
facilities, part of a push by Washington to ensure its military
has adequate supply of the minerals used to make weapons and
electronics. urn:newsml:reuters.com:*:nL1N28F2AS
    The Pentagon plans to pick one or more winners to receive
funding to build a pilot plant to process so-called heavy rare
earths, a less-common type of the specialized minerals used in
weaponry.     
    UCore and Materion are effectively betting that by merging
their areas of expertise, their application will be more
appealing to the Pentagon.
    "We believe that the combination of our experience and
breadth of knowledge presents a winning opportunity," said
Lawrence Ryczek, Materion's vice president of aerospace and
defense.  
    Texas Mineral Resources Corp  TMRC.PK  and a joint venture
between Australia's Lynas Corp  LYC.AX  and privately held Blue
Line Corp of Texas also plan to apply. Lynas and Blue Line
earlier this year announced their partnership, one that served
as a model for UCore and Materion's consortium. urn:newsml:reuters.com:*:nL4N28M560 
    "We were looking for something that would put us directly in
the same league as Lynas with this value proposition, and we've
done that," said Jim McKenzie, chief executive of UCore, which
is developing a rare earths mine in Alaska. 
    The U.S. military's request does not give a specific
financial amount for the award, though it is derived in part
from the Defense Production Act (DPA), a 1950s-era U.S. law that
gives the Pentagon wide financial latitude to procure equipment
necessary for the national defense.
    Beyond finances, whomever is chosen is expected to receive a
large public relations boost and become recognized in the rare
earths industry as one capable of meeting the U.S. military's
high standards. 
    The deadline to apply is Monday. urn:newsml:reuters.com:*:nL1N28N1RV
    Materion has previously received financial support from the
U.S. military to produce beryllium, a mineral used as a
hardening agent for weapons. The beryllium production process
has similarities to rare earths processing. 
    "We have a track record of taking a concept on paper,
meeting the requirements of the (U.S.) military and taking the
project to fruition," said Materion's Ryczek.   
    "There's no reason why we can't help the (U.S.) rare earths
supply chain be successful as well."

 (Reporting by Ernest Scheyder; 
Editing by Sandra Maler)
 ((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder;
+1-713-210-8512; Reuters Messaging:
ernest.scheyder.thomsonreuters.com@reuters.net))