American Rare Earths Limited (ASX: ARR) has announced an updated Scoping Study for its Cowboy State Mine (CSM), located within the Halleck Creek Project in Wyoming, signalling a significantly larger development platform for a potential domestic source of rare earth materials in the United States. The critical minerals company focuses on reshaping the U.S. rare earths industry through projects like Halleck Creek, which aims to secure America’s critical mineral independence for generations. The study outlines a 4.5 million tonne per annum (Mtpa) operation over 26 years, estimating an after-tax Net Present Value (NPV) of approximately US$1.07 billion at an 8% real discount rate, with initial capital expenditure projected at around US$900 million, inclusive of contingency.
The updated study highlights a 50% increase in planned throughput to 4.5 Mtpa, leading to an average annual neodymium and praseodymium (NdPr) oxide production of approximately 2,500 tonnes, a 36% rise from the previous 2025 base case. Furthermore, the mine plan now extends to 26 years, up from 20 years, establishing a more substantial first phase within the broader Halleck Creek resource. This progression supports ARR’s strategy to integrate U.S. rare earth resources directly into the permanent magnet supply chain, with mine and processing development situated in Wyoming, alongside metallisation test work being conducted at Novex.
American Rare Earths noted that the production target described in the study is based entirely on Indicated Mineral Resources, with no Inferred Mineral Resources or Exploration Target material factored into the mill feed. The company also reiterated that the Scoping Study is a preliminary technical and economic assessment, not a Pre-Feasibility or Feasibility Study, and as such, no Ore Reserves have been declared. Future milestones include optimising recovery, conducting pilot and demonstration work, advancing infrastructure studies and permitting, with separated rare earth oxide from the pilot program targeted for late Q2 2027. Funding for the estimated US$900 million initial capital will be sought through a combination of sources, including strategic investors, debt, equity, and government programs.
