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| American Rare Earths |
Strong Economics and Strategic Importance
American Rare Earths Ltd. [ASX: ARR; OTCQX: ARRNF and AMRRY] has released an updated Scoping Study for its Halleck Creek rare earths project in Wyoming, reaffirming the project’s strong economic potential, scalability, and strategic significance. The study, conducted by Stantec Consulting Services Inc., highlights the project’s advantages, including state land tenure, which allows for accelerated permitting and development timelines.
The study confirms Halleck Creek as a world-class rare earths project with robust financials:
3 Mtpa Base Case: NPV10% of $558 million, IRR of 24%, CAPEX of $456 million, payback period of 2.7 years, annual production of ~4,169 metric tons of TREO, including 1,833 metric tons of NdPr oxide.
6 Mtpa Case: NPV10% of $1.171 billion, IRR of 28.4%, CAPEX of $737 million, payback period of 1.8 years, annual production of ~7,661 metric tons of TREO, including 3,344 metric tons of NdPr oxide.
Securing a Domestic Rare Earth Supply Chain
China currently controls over 90% of global rare earth refining, making U.S.-based production a national priority. With Halleck Creek, ARR is positioned as a key supplier for a domestic, tariff-free rare earth supply chain, supporting U.S. defense, aerospace, and high-tech manufacturing.
ARR’s state land tenure significantly expedites the permitting process, reducing the delays common for projects on federal land. Additionally, Halleck Creek’s staged development approach ensures financial flexibility while meeting increasing market demand. The Cowboy State Mine (CSM) represents only Phase 1 of development, mining just 2.4% of the total 2.63Bt JORC resource, underscoring significant expansion potential.
CEO Chris Gibbs emphasized the project’s importance: “With a scalable development pathway under evaluation, Halleck Creek could become a major supplier of rare earths to U.S. and allied markets, securing America’s mineral independence for decades.” ARR is also developing a fully integrated U.S. supply chain, refining and producing high-purity rare earth oxides domestically, reinforcing the Made-in-America initiative.
ARR is working to fast-track development, with Phase One of a pilot plant planned for the beneficiation process. First production is targeted as early as 2029, subject to ongoing technical and economic assessments.
