American Rare Earths (ASX:ARR) is advancing key milestones to further de-risk and develop its Halleck Creek rare earths project in Wyoming, US following the release of an updated Scoping Study.
With a staged development approach, the $142 million market capitalisation company says first production could be as early as 2029, subject to ongoing technical and economic assessments.
American Rare Earths is assessing ways to fast-track development, including plans to start a phase one pilot plant for the beneficiation process.
The company is progressing the Prefeasibility Study (PFS), which is expected to be completed by the end of 2025.
Compiled by independent engineering firm Stantec Consulting Services, American Rare Earths CEO Chris Gibbs says the Scoping Study highlights Halleck Creek’s strong economic potential, strategic advantages, and clear pathway to development as a US-based rare earths project.
To achieve the potential project development outcomes indicated in the study, funding in the order of US$380 million plus $76 million of contingency is needed.
BMO Capital Markets has been appointed as the company’s financial advisor. BMO will spearhead efforts to explore strategic investments, joint ventures, mergers and acquisitions, and/or offtake agreements that support the development of the project.
Gibbs says the updated Scoping Study reinforces the US$456 million capex project’s 3 million tonnes per annum base case offers a low-risk entry point, producing 1,833 tonnes of NdPr oxide annually, with an NPV10% of US$558 million, an IRR of 24%, and a 2.7-year payback period.
Annual production under this scenario is expected to be 4,169 tonnes of TREO, including 1,833 tonnes of NdPr oxide.
The 6 million tonnes per annum case “highlights Halleck Creek’s billion-dollar potential”, delivering an NPV10% of US$1.17 billion and an IRR of 28%, “showcasing the project’s scalability”, Gibbs continues.
Annual production under this scenario is poised to be 7,661 tonnes of TREO, including 3,344 tonnes of NdPr oxide.
“With a large-scale resource and favourable economics, we are uniquely positioned to help secure America’s rare earth supply and reduce dependence on foreign sources,” the CEO says.
“With a scalable development pathway under evaluation, Halleck Creek has the potential to become a major supplier to US and allied markets. Future production scenarios could position ARR among the top rare earth producers outside China, reinforcing America’s supply chain security for decades to come.
“And we’re not just mining — we are developing a fully integrated US supply chain, refining and producing high-purity rare earth oxides for American manufacturers. Halleck Creek aligns with the growing push for Made-in-America critical minerals, securing a domestic supply for defence, aerospace, and high-tech manufacturing.”
Touted as the only large-scale rare earths project in the US with a clear path to production, the company says it is positioned to secure a domestic, tariff-free supply of critical minerals for US and allied markets.
China controls more than 90% of global rare earth refining. With the US prioritising supply chain security, American Rare Earths says it is uniquely positioned as a credible developer to deliver a fully integrated solution, from mining to refining.
Write to Adam Orlando at Mining.com.au
Images: American Rare Earths
