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Highlights
- Robust project economics with strong financial metrics.
- Attractive capital expenditure with swift payback scenarios.
- Strategic advancement for a secure domestic supply chain.
American Rare Earths (ASX:ARR) has unveiled encouraging scoping study findings for its Halleck Creek Project in Wyoming, highlighting the project’s significant economic potential and its role in bolstering the nation’s critical minerals supply. The study outlines a scalable development plan underpinned by two scenarios that promise robust financial returns and rapid capital recovery.
In the base case, the project is designed to process 3 million tonnes annually. This scenario demonstrates a net present value (NPV10) of US$558 million and an internal rate of return (IRR) of 24%, with estimated capital expenditure of US$456 million and a payback period of 2.7 years. An expanded scenario, aimed at processing 6 million tonnes per year, reveals even more promising figures. Under this plan, the project could achieve an NPV10 of US$1.171 billion and an IRR of 28.4%, with a capital expenditure requirement of US$737 million and a notably shorter payback period of 1.8 years.
The study reinforces the economic robustness and scalability of the Halleck Creek Project while drawing attention to its strategic value. With an impressive resource estimate of 2.63 billion tonnes, the project not only stands to generate substantial economic benefits but also contributes to reducing reliance on foreign sources of rare earth elements. This development comes at a time when domestic production is gaining momentum in response to increasing demand from defense, aerospace, and high-tech manufacturing sectors.
Beyond the extraction process, American Rare Earths (ASX:ARR) is charting an integrated pathway that extends to refining and producing high-purity rare earth oxides. This approach is aimed at establishing a fully integrated domestic supply chain, aligning with national priorities for Made-in-America critical minerals. The move is anticipated to enhance supply chain security and support the country’s energy transition efforts by ensuring access to vital materials.
Plans are currently underway to fast-track development, including the initiation of a pilot plant for the beneficiation process, which is expected to provide further practical insights into operational efficiency. A Prefeasibility Study is also slated for release by the fourth quarter of 2025, offering additional clarity on project timelines and developmental milestones.
The strategic and financial merits of the Halleck Creek Project underscore its potential to play a central role in transforming the U.S. rare earth industry, paving the way for a more secure and self-reliant domestic supply chain.
