U.S. Interior Minister Doug Burgum on Sunday openly expressed his support for Australian-listed Dateline Resources (ASX: DTR) as the company moves to restart what could be America’s second-largest rare earth mine – the Colosseum project located in California.
In an interview, Burgum underlined that reviving the Colosseum project is critically important for bolstering the U.S. supply of critical minerals. Dateline Resources noted that this strong backing from the Interior Department emphasizes the strategic significance of the project, potentially reducing America’s reliance on rare earth supplies from abroad. The company has already received approval from the Interior for its mining plans.
Shortly after Burgum’s public endorsement, Dateline’s Director Stephen Baghdadi and his management team departed for the United States to discuss the project’s next steps with the minister. The talks focused on evaluating the mine’s potential contribution to the U.S. rare earth supply chain – a vital element for cutting-edge technology and national security – and highlighted that the project could start production even sooner than any other known U.S. rare earth resource. During the meeting, Burgum reaffirmed his commitment to expanding U.S. rare earth production and expressed particular enthusiasm for the Colosseum project.
Strategically located in California’s Walker Lane Trend, the Colosseum project is just 10 kilometers away from Mountain Pass – the sole U.S. rare earth mine currently operated by MP Materials (NYSE: MP). After taking over the project in 2021, Dateline identified a similar geologic setting between Colosseum and Mountain Pass, indicating potential for rare earth-bearing ore. However, since the project lies within the Mojave National Preserve, its development was stalled in recent years.
It is important to note that, at this stage, no resource estimate for rare earth elements has been made for Colosseum.
Although the United States accounts for about 12% of global rare earth mining – mainly from California’s Mountain Pass mine – the country still heavily relies on China for processing, as roughly 80% of U.S. mined raw rare earths are sent overseas for refinement before being sold back in finished forms. Meanwhile, China dominates the global rare earth value chain with over 60% of global reserves, more than 90% control over heavy rare earth minerals (such as dysprosium and terbium), and processing shares that range between 85% and 95%, covering every stage from ore separation to magnet manufacturing.
In the wake of the U.S.-China trade war, rare earths have gained heightened attention.
Following the introduction of the Rare Earth Management Regulations in 2024, China recently announced further restrictions on the export of certain rare earth materials. These measures have raised concerns among global companies and governments, all of whom are now scrambling to find alternative sources amid fears that a shortage of rare earth magnets could trigger a major disruption in the global supply chain.
