Exploration and development company Australian Rare Earths (AR3) has confirmed its rare earths mine Koppamurra project is both economically and technically viable.
The company revealed its pre-feasibility study (PFS) for the massive 7600-square-kilometre project, which stretches from the south-east of South Australia into western Victoria.
Initial drilling results have already positioned Koppamurra as a globally significant rare earths deposit, which is vital to building Australia’s sovereign manufacturing and defence capabilities.
The initial PFS has focused heavily on a 15-square-kilometre section earmarked for a proposed Mining Lease.
The study outlines a highly profitable 12-year initial project life requiring an upfront capital investment of AU$178 million.
It is expected to generate between 80 and 100 full-time regional jobs and funnel approximately AU$100 million in royalties directly back to the South Australian government.
The study confirmed heap leaching, a mature extraction process commonly used in Australian gold and copper sectors, as the preferred processing method.
AR3 CEO Travis Beinke said the results justify the company’s AU$20 million exploration investment to date.
“We have a vision to create a new industry for South Australia with jobs and investment in the south-east while supporting sovereign capability by developing a secure and sustainable rare earth supply chain for advanced manufacturing and defence applications,” Beinke said.
“Today’s important milestone further strengthens our confidence as we continue to invest in social, environmental and technical assessments and stakeholder engagement through the Community Consultative Committee.”
The project is moving ahead. AR3 is preparing to process 30 tonnes of Koppamurra ore at the newly minted Australian Critical Minerals Research and Development Hub in Sydney, acting as the facility’s first industry pilot partner.
Additionally, the SA Department for Energy and Mining has approved a comprehensive Scoping Report to guide environmental and community impact assessments.
Addressing local concerns, Beinke noted that the shallow mining operation will feature rapid rehabilitation, allowing the land to be returned to farmers quickly while leaving underlying groundwater aquifers untouched.
“We believe agriculture and rare earths mining can operate alongside each other in the south east with mutual benefits.
“Our activity sits above both groundwater aquifers and we are looking at where we may be able to improve soil quality in some areas during rehabilitation.”
Data from the upcoming pilot processing and socio-economic studies will ultimately feed into a final definitive feasibility study (DFS).