American Rare Earths Ltd has outlined a solid economic case for the Halleck Creek Rare Earths Project in Wyoming, US, with strong net present values (NPV10) expected for the 3 million tonnes and 6 million tonnes per year development options.
The lower output development case of 3 million tonnes would offer a low-risk entry to production of neodymium-praseodymium (NdPr) while the larger option presents enhanced economics with a higher internal rate of return (IRR).
With that context in mind, ARR’s scoping study outlines a potential NPV of US$558 million or US$1.17 billion, an IRR of 24% or 28.4% and capital expenditure of US$456 million or US$737 million.
Potential to be major US supplier
"The updated scoping study reinforces Halleck Creek's strong economic potential, strategic permitting advantage and clear pathway to development,” American Rare Earths CEO Chris Gibbs said.
“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 6 million-tonne-per-annum case highlights Halleck Creek’s billion-dollar potential, delivering an NPV10% of US$1.17 million and an IRR of 28%, showcasing the project’s scalability.
“The 3-million-tonne base case offers a low-risk entry point, producing 1,833 metric tonnes of NdPr oxide annually, with an NPV10% of US$558 million, an IRR of 24%, and a 2.7-year payback period.
"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.”
US supply chain security
ARR is targeting the US market for rare earths in a bid to align with US efforts to diversify its mineral supply chains, moving away from an almost total dependence on China.
China currently controls about 90% of global rare earth element refining – Halleck Creek holds a large resource of 2.63 billion tonnes, with 84% of the project tenure remaining open to further exploration.
The first phase of development at Halleck Creek centred on the Cowboy State Mine represents only 2.4% of the total resource over a 20-year mine life, offering huge potential for extended mine life and increased production in future phases.
Given the increased demand for rare earths, ARR is assessing the viability of further studies to unlock that potential, with the strong belief Halleck Creek could support a “much larger, long-term operation” that could “position ARR among the top rare earth producers outside China.”
From here, American Rare Earths will focus on updating the Halleck Creek resource models and mine planning, advance metallurgical test work, progress state permitting and environmental studies, and produce a pre-feasibility study.