AakaashBali / iStock via Getty ImagesWhen American Resources Corp. (NASDAQ: AREC) reported quarterly results in late July, the company said it created a wholly-owned subsidiary, American Rare Earth, to explore and monetize rare earth mineral deposits. Founded as a coal company, American Resources said it mined no coal in the quarter because it shut down its mines due to the COVID-19 pandemic. As a result, the company reported no revenues for the quarter.
Wednesday morning the company announced that its American Rare Earth subsidiary has begun “exploring strategic options to unlock the value of its rare earth assets.” The subsidiary plans to begin exploration at 10 former coal mine sites in eastern Kentucky. Coal, rare earth elements, what gives?
It turns out that many of the 17 rare earth elements exist in coal processing refuse and ash residue and that the concentration of heavy rare earth elements (the lowest