American Rare Earths Ltd has released an updated scoping study for its Halleck Creek project, reinforcing its economic viability, scalability, and strategic importance as a rare earths asset in the United States.
ARR is strategically positioned to capitalise on its first-mover advantage in the US rare earths sector, with the Halleck Creek project standing as the only large-scale development in the country with a clear path to production. This places ARR at the forefront of efforts to establish a domestic, tariff-free supply of critical minerals for the US and its allied markets.
The study, conducted by independent engineering firm Stantec Consulting Services Inc., highlights the project's robust financial metrics. The 3 million tonnes per annum (Mtpa) base case delivers a net present value (NPV10%) of US$558 million with an internal rate of return (IRR) of 24%, supported by a low-risk capital expenditure (CAPEX) of US$456 million. A 6 Mtpa expansion scenario significantly enhances project economics, with an NPV10% of US$1.17 billion, an IRR of 28.4%, and a CAPEX of US$737 million.
Halleck Creek's strategic location in Wyoming, a Tier 1 mining jurisdiction, offers a first-mover advantage. Its state land tenure streamlines permitting, positioning ARR as a leading U.S.-based rare earths developer independent of tariffs and foreign processing reliance.
The project's scalability is underpinned by a JORC-compliant resource of 2.63 billion tonnes (Bt). The initial 3 Mtpa Phase 1 operation plans to mine approximately 62.3 million tonnes (Mt) over 20 years, utilising only 2.4% of the total resource. With ongoing studies, ARR sees potential for a larger, long-term operation with an extended mine life and increased production capacity.
Additionally, the deposit remains open at depth and along strike, with the current JORC resource covering just 16% of the broader Halleck Creek area, highlighting substantial expansion opportunities.
"The Updated Scoping Study reinforces Halleck Creek strong economic potential, strategic permitting advantage and clear pathway to development. 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,” ARR CEO Chris Gibbs said.
"The 6 Mtpa case highlights Halleck Creek’s billion-dollar potential, delivering an NPV10% of US$1.17B and an IRR of 28%, showcasing the project’s scalability. The 3 Mtpa base case offers a low-risk entry point, producing 1,833 metric tonnes of NdPr oxide annually, with an NPV10% of US$558M, 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 U.S. 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 U.S. 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 defense, aerospace, and high-tech manufacturing."
Strong economics and scalable growth potential
The updated Scoping Study confirms Halleck Creek as a significant rare earths project with robust financial metrics and long-term scalability.
3 million tons per annum (Mtpa) base case:
- Net Present Value (NPV10%): US$558 million
- Internal Rate of Return (IRR): 24%
- Capital Expenditure (CAPEX): US$456 million
- Payback Period: 2.7 years
- Annual Production: ~4,169 metric tonnes of total rare earth oxides (TREO), including 1,833 metric tonnes of neodymium-praseodymium (NdPr) oxide
6 Mtpa expansion case:
- NPV10%: US$1.171 billion
- IRR: 28.4%
- CAPEX: US$737 million
- Payback Period: 1.8 years
- Annual Production: ~7,661 metric tonnes of TREO, including 3,344 metric tonnes of NdPr oxide
Advancing US supply chain security
With China currently controlling over 90% of global rare earth refining, US supply chain security has become a national priority. ARR is uniquely positioned to address this challenge by developing a fully integrated mining-to-refining solution within the United States. The company’s state land tenure further streamlines the permitting process, avoiding the prolonged delays often encountered by projects on federal land.
Halleck Creek’s 100% US-based production and refining capabilities intend to eliminate reliance on foreign supply chains, reinforcing the "Made in America" initiative while ensuring a stable supply of rare earth oxide metals. Additionally, the deposit remains open at depth and along strike, with the current JORC-compliant resource of 2.63 billion tonnes covering only about 16% of the broader project area. This underscores the expansion potential for ARR as it continues to advance the project.
Clear development pathway
ARR has outlined a clear development pathway for its Halleck Creek project, adopting a staged approach that provides both financial and operational flexibility. The strategy enables the company to scale production in line with market demand while ensuring a low-risk entry into production.
Under the base case scenario, ARR plans to start operations at a rate of 3 million tons per annum (Mtpa), producing an average of 4,169 metric tons (mt) of total rare earth oxides (TREO) annually. This includes approximately 1,833 mt of neodymium-praseodymium (NdPr) oxide, a critical component in high-performance magnets used in electric vehicles and renewable energy applications.
A scalable alternative would see production expand to 6 Mtpa, significantly enhancing the project’s economics. At this rate, annual output would increase to 7,661 mt of TREO, including 3,334 mt of NdPr oxide, further strengthening ARR’s position in the rare earths market.
The initial phase of development focuses on the Cowboy State Mine (CSM), which benefits from a strategic permitting advantage. The 20-year life-of-mine (LOM) plan for CSM involves mining approximately 62.3 Mt of ore, representing just 2.4% of the total 2,627 Mt JORC Mineral Resource at Halleck Creek. This underscores the project’s vast long-term potential.
With demand for rare earths continuing to grow, ARR is evaluating further expansion opportunities that could position Halleck Creek as one of the largest rare earth operations outside China, supporting an extended mine life and increased production capacity in future phases.
What’s next?
ARR continues to further de-risk and develop Halleck Creek, following strong execution in 2024. The Updated Scoping Study, supported by recent metallurgical results, highlights the project's scalability and strategic significance as a leading rare earths asset in the United States.
With a staged development approach, first production could begin as early as 2029, pending ongoing technical and economic assessments.
The company is also exploring options to accelerate development, including plans to initiate Phase One of a pilot plant for the beneficiation process.
Looking ahead, the 2025 roadmap outlines critical next steps and the next major stage gate in the project’s progression.
