Breathing new life into one of Europe’s biggest lignite mines: US backs rare earth extraction

Bulgarian Energy Holding (BEH), the state-owned company overseeing key energy assets and the University of North Dakota (UND) have signed a memorandum of understanding to explore modern technologies for extracting rare earth elements from lignite at the Maritsa Iztok mine.

The agreement also covers environmental impact assessments and the implementation of sustainable resource management, and includes plans to establish a research centre for critical raw materials in Bulgaria to support the European supply chain.

The university has already built a pilot plant in the US to extract valuable elements such as synthetic graphite and germanium from lignite coal. Initial analyses indicate that the composition of Bulgarian coal closely resembles that of coal mined in North Dakota, which opens up opportunities for transferring the American expertise to Bulgaria.

Next steps include extended geological studies, new coal sampling from the Maritsa Basin, and the preparation of a feasibility study to demonstrate the technological viability and economic efficiency of a project in Bulgaria similar to the North Dakota one.

“By signing the Memorandum, Bulgaria is taking a decisive step toward integration into the global supply chain and positioning itself as a European hub for modern carbon products,” said Minister of Energy Zhecho Stankov. “This investment intertwines three key elements: resources, science, and technology. It provides new economic opportunities and long-term prospects for one of the core regions of Bulgarian energy – the Maritsa Basin – while preserving thousands of jobs in the mining sector, as outlined in the management program and as a commitment I made to the miners.”

“I am confident that this new partnership will open up opportunities for modernisation of the industry and will bring concrete benefits for people and the economy,” said Valentin Nikolov, Executive Director of BEH.

“We are proud of the technologies we are developing, and I believe they will provide a significant economic boost to the region,” said Scott Snyder, UND Vice President of Research and Economic Development.

Bulgaria has recently signed an agreement with the European Investment Bank (EIB) to receive advisory support for the greening of the mine.