Micro-Pricing: The Value of Trace Rare Earth Elements in Coal and Coal Byproducts

"A supply of sustainably sourced rare earth elements (REEs) is critical for several high-tech industries, renewable energy technologies, and defense applications. Recent studies have shown that REEs exist in coal and coal combustion byproducts at elevated concentrations and in quantities that could meet domestic demand. Despite these promising findings, declines in rare earth prices, volatile commodity markets, and challenging geo-metallurgical conditions have jeopardized this potentially valuable REE resource. While the dilute REE concentrations inherently necessitate low-cost separation technologies, the ultimately operating cost threshold for economic extraction must be based on commodity price projections and market demand. In this paper, the micro-pricing principle is used to develop a rigorous economic model assessing the inherent value of REEs in coal materials. This model is based upon basket pricing of individual elemental oxides, and elemental distributions of coal samples from various basins. These results may be used to assess the economic viability of potential REE concentration and refining technologies INTRODUCTION Recent efforts by US Department of Energy (DOE) and the National Energy Technology Laboratory (NETL) have suggested that rare earth elements (REEs) may exist in coal and coal byproducts at concentrations suitable for economic extraction and processing. While the knowledge of REE occurrence in coal material dates back over 50 years, recent supply restrictions and material criticality considerations have prompted a national interest to establish a sustainable domestic supply of REEs. REEs are not “rare” in the sense of crustal abundance; however, few natural processes lead to concentrated ore deposits. As a result, the elevated concentrations found in coal material may provide a potentially promising resource for these materials. While the term “rare earths” is often used to describe a singular concept, the 15 rare earth elements actually have varying and sometimes contrasting scarcity and cost profiles. Various authors have proposed classification systems to provide information on REE criticality (e.g. Seredin and Dai, 2012, Zhang et al., 2015). The most straightforward classification is provided on the basis of geochemistry with designations for “light”, “medium” and “heavy” rare earths. Light rare earths (those to the left of the periodic table: Ce, Pr, Nd, and Sm) tend to be more common and less valuable when compared to their medium (Eu, Gd, Tb, Dy, and Y) and heavy (Ho, Er, Tm, Yb, and Lu) counterparts. While light rare earths are often found in traditional ore deposits at economic concentrations, the heavier rare earths are almost exclusively found as ion-absorbed clays (Seredin and Dai, 2012)."