Responding to an outcry from newly-elected U.S President Donald Trump in January, Nebraska Governor Pete Ricketts nominated the Elk Creek Superalloy Project as a "High Priority Infrastructure Project," per language laid out in an Executive Order.
The Elk Creek Project is a developmental superalloy materials project of Tecumseh, NE-based Elk Creek Resources Corp., the operating subsidiary of Colorado's NioCorp Developments Ltd. (TSX:NB)(OTCQX:NIOBF), in Southeast Nebraska planned to produce niobium, scandium, and titanium.
The Republican governor penned a response to Trump's Executive Order issued January 24, 2017, titled, "Expediting Environmental Reviews and Approvals For High Priority Infrastructure Projects," informing Washington as to the importance of the Elk Creek project towards meeting the administration's objectives.
Noting that Elk Creek could become the nation's first-ever domestic producer of niobium, an increasingly important metal in highway bridges and all mega-steel infrastructure projects, Ricketts believes, "[the] Elk Creek Superalloy Project can help the U.S. produce American-made 'super steels' for infrastructure projects across all 50 states."
"We need niobium, Mr. President, yet we don't mine a single pound of it in the U.S. today. Nebraska wants to change that, and as rapidly as possible," added Ricketts.
So-called super steels are exactly as the term implies. Utilizing technology and different alloys than traditional steel, they are stronger and often times lighter and more durable, meaning that they are superior products for a litany of applications.
In addition to being the highest grade niobium project in North America, Elk Creek also has the potential to be the largest scandium project in the world. A feasibility study showed the project to hold tremendous value.
Economics calculated at an 8% discount rate and a 32-year mine life showed gross life of mine revenue of $17.6 billion with an operating margin of $12.2 billion. This, or course, goes without mentioning possibly serving the invaluable goal of helping U.S. to rebuild the country's aging bridges and strengthen its defenses.
Given these economics and benefits, it's no surprise that NioCorp and Ricketts are eager to see the project brought to commercialization. NioCorp is hosting a town hall meeting and buffet Dinner to discuss the details of the feasibility study on September 8 in Syracuse, Nebraska.
Toronto-listed shares of NioCorp. are up 7.94% to 68 cents in early trading on Monday, although they remain down 9.3% so far in 2017.
