Australian mineral explorer considers entering U.S. helium market

Australian exploration and production Company ECR Minerals is eyeingheliumopportunities in tHe United States and looking to expand its operations. The company said it wants to focus on assets with confirmed historicalhelium production and access to existing infrastructure. This will include looking at sites that are already producing, have the capacity to produce in the near term or are able to process helium.

ECR Minerals chairman Nick Tulloch said the company had spent months streamlining operations to improve efficiency.“While people often think that a big part of developing natural resources is finding them, we actually believe that production and sales are what really define a company,” he said. "There are many rich deposits of resources around the world, but mining and selling them is simply not economical or even possible. This is especially true of helium. Despite its high value, it is not an element that is easy to process or transport."

Over the past year, ECR has implemented what it considers a low-cost operating structure and intends to stick with it if the company expands operations. ECR said it plans to seek some outsourcing and will work with partners to ensure any funds committed are used only for operations and nothing else. Tulloch concluded: "As we examine expansion possibilities at ECR, it is critical to identify assets that are capable of near-term production. Therefore, helium sales and access to nearby infrastructure, including gathering pipelines and processing plants, are essential."

Helium is a rare gas with the chemical formula He. It is colorless and odorless, and its chemical properties are inactive. It is difficult to react with other substances under normal conditions. Helium is widely used in aerospace, semiconductor industry, cutting-edge scientific research and other fields. Foreign countries have long attached importance to the protection and strategic reserve of helium resources. The global helium production is highly concentrated, and the United States, Qatar, Algeria and Russia monopolize about 90% of the global helium market.