Colorado School of Mines and ElementUSA announced that they have been awarded $67 million in funding from the U.S. Department of Energy (DOE) to build a facility for the extraction and processing of rare earth elements (REEs) from alumina tailings in Gramercy, Louisiana.
The project is one of two initiatives selected by the DOE’s Office of Critical Minerals and Energy Innovation to design, construct, commission, and operate a rare earth element facility capable of separating REEs from mine tailings and other waste materials, then refining them into rare earth metals. The initiative is aimed at strengthening domestic supplies of critical minerals used across energy systems, defense, electronics, transportation, healthcare, and other industries.
ElementUSA, a company focused on waste-to-market mineral recovery solutions, holds exclusive rights to the alumina tailings at the Atalco alumina refinery in Gramercy. The site contains more than 30 million tons of bauxite residue, commonly known as “red mud,” which contains rare earth elements and other critical minerals.
The DOE funding will support development of a processing plant capable of producing between 150 and 1,000 metric tons of rare earth elements annually for domestic use. Target materials include dysprosium, terbium, yttrium, gadolinium, neodymium, praseodymium, samarium, and lanthanum.
Colorado School of Mines will lead the project through its Mines Waste to Value Center, which focuses on recovering critical minerals from mine waste and advancing sustainable resource development. The center will provide expertise across the mineral value chain to optimize, validate, and de-risk the project.
Founded in 2021, ElementUSA develops midstream processing infrastructure designed to recover critical minerals from both primary and secondary sources. The company is also developing a demonstration plant in Gramercy focused on the extraction of gallium and scandium.
The project supports broader U.S. efforts to reduce dependence on foreign sources of critical minerals while transforming industrial waste streams into valuable domestic resources.
KEY QUOTES:
“Today’s active mines and processing facilities are optimized to produce just a few commonly used metals, with valuable critical minerals discarded as waste or stored in tailings facilities that require long-term environmental management. Recovering critical minerals from these untapped wastes is a key strategy for domestic mineral security and environmental stewardship. Colorado School of Mines has been a leader in waste-to-value research and workforce development for decades. With support from DOE and in collaboration with ElementUSA, Mines research is changing the world, transforming waste into the minerals that we need.”
Elizabeth Holley, Professor Of Mining Engineering, Colorado School Of Mines, And Principal Investigator On The Project
“We are honored to receive the Department of Energy’s support and to partner with Colorado School of Mines on this important initiative. This project represents a significant step toward unlocking a new domestic source of critical minerals essential to advanced manufacturing, semiconductors, energy systems and national security. By combining Colorado School of Mines’ world-class expertise with ElementUSA’s commercial development platform, we are advancing a practical pathway to recover strategic materials from bauxite residue at scale, strengthening America’s critical mineral supply chains while creating long-term value from an underutilized domestic resource.”
Ellis Sullivan, Chief Executive Officer, ElementUSA
“The goal of the Mines Waste to Value Center is a 10 percent reduction in mine waste and a 10 percent reduction in critical mineral imports in 10 years. Projects such as this DOE-funded partnership with ElementUSA show how Mines is already leading the way.”
Elizabeth Holley, Professor Of Mining Engineering, Colorado School Of Mines, And Principal Investigator On The Project
