Core Natural Resources (CNR) said Monday its Consol Innovations subsidiary was selected by the US Department of Energy for a multi-million-dollar grant to pilot critical mineral and material recovery from coal.

The award, subject to negotiations with the DOE, will be made under the department's Mines and Metals Capacity Expansion program, according to a statement.

Consol intends to use the funding to develop a pilot-scale facility for the extraction of rare earth elements and critical materials from coal waste tailings from Core's Pennsylvania Mining Complex, it added.

On July 1, the DOE's Office of Critical Minerals and Energy Innovation said it will award $75 million for five projects, including Consol Innovations, that use coal and coal-based feedstocks to produce rare earth elements and other critical materials.

Shares of Core Natural Resources were up 3% in premarket activity Monday.