Setopia, Joint Venture GCM and US EMC Sign MOA for Joint Development of Pee Ridge Mine

Setopia announced on the 1st that GCM, a joint venture established by Setopia and Vietnam's VTRE, has entered into a comprehensive contract (MOA) regarding mineral refining and metal production with EMC (Evolution-metal Corp), which holds the rights to the overall development project of the Pea Ridge mine in the Missouri region of the United States. The contract includes cooperation on building a rare earth supply chain and developing metal products from the Pea Ridge mine.

EMC, located in Florida, USA, is a company established in January 2020 that practices a green economy by supplying globally important critical minerals and eco-friendly materials, as well as reducing carbon emissions. EMC has been delegated full authority to execute this contract.

The Pea Ridge mine is known to possess approximately 24 million tons of sedimentary ore containing rare earth elements in three sedimentary mining areas, including phosphates artificially deposited on the surface over the past 40 years of iron ore mining. However, due to environmental pollution issues and the absence of rare earth refining and smelting technology in the U.S. for about 30 years, GCM was identified as a partner capable of supplying refining facilities and technology.

EMC will supply the rare earth sedimentary ore to GCM, and GCM will refine the supplied ore into oxides. Additionally, a metal factory will be newly established in Vietnam and at a future flotation facility on the Pea Ridge mine site to produce NdPr metals in both Vietnam and the U.S., which will be supplied and sold to global companies including those in the U.S.

Furthermore, it is reported that GCM will be granted priority rights to sell newly mined minerals from the Pea Ridge mine when mining operations commence, as part of the agreement with EMC.

Currently, the Pea Ridge mine holds sedimentary mines that are immediately usable and has secured the necessary permits for mining. Unlike the conventional excavation mining method of rare earth mines, the Pea Ridge mine collects ore directly from three artificially deposited sedimentary mine lakes around the site, which significantly reduces typical mining costs, thereby offering excellent cost competitiveness.

In particular, the 24 million tons of sedimentary ore at the mine contain a substantial amount of mid-heavy rare earth elements (such as Dy, Tb) that are traded at high market prices, making it commercially valuable and promising.

David Wilcox, CEO of EMC, who is overseeing the overall Pea Ridge mine project, stated, “We have high expectations for the partnership with GCM, which possesses rare earth oxide refining capabilities and metal processing technology. Through sequential progress, EMC will undertake additional investments and other roles to ensure the smooth supply of high-quality rare earth ore from the Pea Ridge mine and accelerate the ongoing green steel project, thereby establishing a supply chain within the U.S.”

Seosangcheol, CEO of Setopia, said, “GCM has a great opportunity through collaboration with EMC, which is managing the Pea Ridge mine project that holds high-quality rare earth ore in sedimentary form. Unlike traditional mining projects that require massive initial capital and long-term development, this project allows GCM to proceed by supplying sedimentary ore immediately without significant capital investment by providing its technology and facilities. We expect full-scale production to begin within a few months.”

He added, “As GCM, a joint venture of Setopia and VTRE, secures additional rare earth ore through the Pea Ridge mine in Vietnam and the U.S., we plan to establish metal production plants in Vietnam and the U.S. accordingly to build a more efficient global supply chain for NdPr metals.”