Petersburg-based company to reactivate critical minerals mining operations in Dinwiddie, Sussex

Petersburg, Va.-based Atlantic Strategic Materials' mineral separation facility, which the company says is "the largest of its kind in North America," in Stony Creek in Sussex County. (Atlantic Strategic Minerals)

A mineral production company will restart mining operations in Dinwiddie and Sussex counties to produce rare earth elements as well as titanium and zirconium, two minerals deemed critical by the federal government because of their use in space, renewable energy, defense and consumer manufacturing.

With headquarters in Petersburg, Atlantic Strategic Minerals will invest $50 million to restart the mine in Dinwiddie County that was formerly owned by Australian-based IIuka, which closed it down in 2015, Chief Executive Officer of Atlantic Strategic Metals Christopher Wyatt said in a phone interview.

The investment will also let the company rehabilitate their concentrator and separator plant along Stony Creek in nearby Sussex County, where the company will extract the minerals from the muddy, dug-up material.

Titanium, which ASM will derive from ilmenite, and zirconium are on a federal list of critical minerals , the United States Geological Survey’s compilation of “non-fuel mineral or mineral material essential to the economic or national security of the U.S. and which has a supply chain vulnerable to disruption.”

Critical minerals fall under the definition of a critical material, which is a similar but separate list of additional minerals, elements and substances essential to the American economy.

In terms of importance to energy projects and risk of supply disruptions in the near term, between 2020 to 2025, the U.S. Department of Energy ranks titanium with a score between a 1 and a 1.5, on a low-to-high ranking scale of 1 to 4. In the medium term, between 2025-2035, the score for titanium increases closer to a 1.5 in both energy importance and supply chain risk. Zirconium is not on the website’s chart.

Lithium, cobalt and nickel are more commonly known critical minerals that are all used in various renewable energy technologies, including batteries for electric vehicles as well as electricity storage devices for power utilities.

Titanium, known for its corrosion resistance and strength, is used to make metal. Zirconium, which Wyatt described as “more critical” than titanium, has been used in constructing spaceships, as well as in containers for uranium fuel rods used for traditional nuclear power plants.

“It is incredibly fortunate that these critical minerals are in Virginia, where there exists a knowledgeable and talented workforce,” Wyatt said in his statement.

Asked about the prospect of using their mined Zirconium for small modular reactors, which Youngkin has been pushing for to be developed and used in the state, Wyatt said, “It very well could be — if it works,” adding that the market hasn’t been developed yet.

The mine is planned to run for about six years across an area of 20 to 40 acres to procure a yearly average of about 20,000 short tons of titanium and 50,000 to 60,000 short tons of zirconium, Wyatt said. The separating operations process uses magnets, electrostatics and some additives like flocculant, which is a chemical to help the mud sink in the water, Wyatt said.

National Academies report says Virginia gold mining regulations are inadequate

Following the revelation that a Canadian gold mining company was drilling in Buckingham County in 2021, legislators ordered a study to see whether, concerning gold mining and processing, the state’s regulations went far enough to protect the environment. The National Academy of Sciences reported the following yea that Virginia lacked regulations around gold mining, including the use of cyanide, an additive sometimes used in the extraction process. The mineral production process that ASM will use is “nothing like” the one used to extract gold, Wyatt said.

The major project — the result of a deal between the Virginia Economic Development Partnership and its Virginia Jobs Investment Program, the counties and Virginia’s Gateway Region — is expected to generate 71 jobs.

Atlantic Strategic Minerals will undergo two site visits a year from the Virginia Department of Energy to monitor stormwater runoff for any excess mud, Wyatt said, and the Virginia Department of Environmental Quality will monitor nearby wells. The company also partners with Virginia Tech to test the sites’ soil so that the land can be reclaimed for farming after the operations are done, Wyatt added.

“We aim to continue doing that,” Wyatt said.

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