American Resources Corp (NASDAQ:AREC) CEO Mark Jensen talked with Proactive about how the company is leveraging blockchain and AI to reshape the critical minerals supply chain.
Jensen discussed a new initiative of its minority-owned subsidiary ReElement Technologies in partnership with SAGINT that uses tokenization to provide full traceability for rare earth and critical mineral sourcing.
He explained that this technology enables tracking from the original source through to the end customer, supported by blockchain infrastructure and secure payment systems.
Jensen highlighted the platform's appeal to defense-sector customers, where traceability is a requirement.
The blockchain system not only offers transparency but creates a marketplace where surplus product can be traded securely, outside of traditional Chinese-controlled supply routes.
He also emphasized American Resources’ commitment to ethical sourcing, especially in overseas operations like Africa, where the platform helps verify compliant and safe production.
Proactive: All right, welcome back inside our Proactive newsroom. And joining me now is Mark Jensen. He is the CEO of American Resources Corp. Mark, it's good to see you again. How are you?
Mark Jensen: I'm doing great.
Good to hear. You know, we’ve talked about a lot of the deals you're signing and the work around critical minerals. Being able to trace or keep an eye on the traceability of that stockpile is extremely important — and that’s what today’s news is about, right?
Yes. It's about traceability and establishing the market. Jacob and his team at SAGINT have done an absolutely phenomenal job of building a product that is desperately needed. A lot of our customers, particularly in the defense sector — we have eight or nine — require knowing exactly where these products are coming from. So having this capability was huge.
So tell us how this tokenization will work.
They’ve built an entire platform that enables us to trace where we source the material from, all the way through to where we sell the product — using blockchain and a lot of in-house technology. It also includes the payment side, which lets us track and secure payments much faster. We can also market products through a new market-based platform. For example, if we produce beyond our current customers’ needs, we can list the surplus on the blockchain and sell it. Financial institutions are actively transacting in commodities, trying to establish what non-Chinese-based rare earths or critical minerals are worth.
Yes, transparency, trust, and efficiency — the blockchain helps all that run smoothly across the various channels you’re working on.
Absolutely. We’re doing some really cool stuff with the SAGINT team, especially overseas. They're working in Africa and other regions where we can ensure transparency and compliance in production. That verified process allows us to potentially charge premiums. Of course, we value our customers and want to offer the lowest-cost product to secure long-term relationships. But this technology makes us, I believe, the only company in the rare earth supply chain today that can offer 100% traceability and trust of where the product came from.
When you were building this company, did you ever think blockchain and AI would become so important? It sounds like they’re now necessities in your industry.
Honestly, I was a late adopter to some of these technologies. My wife gave me a hard time for not learning about them faster. But blockchain is a valuable tool — especially for secure financial transactions and traceability. As for AI, we just implemented a new simulation software that’s lowering our costs even further. Our goal is to be the lowest-cost producer, not just in the U.S., but globally. This simulation software, powered by machine learning, is helping us reduce costs by 10%, 15%, even 20% more from where we are today. We genuinely believe we are already the lowest-cost producer. We're using innovative technology to disrupt the current supply chain and add unique attributes that make us stronger.
Quotes have been lightly edited for style and clarity