The deposit ranks among the world’s largest, according to initial scoping studies.
The Export-Import Bank of the United States (EXIM) has awarded American Rare Earths (ARR) $456 million in debt financing through a non-binding letter of interest to advance the Halleck Creek Project in Wyoming. In a statement on Wednesday, ARR said the funds cover the entire initial capital expenditure for the project, representing the first stage in development. Once operational, the mine is expected to produce various rare earth elements, including neodymium, praseodymium, and dysprosium, all three of which are needed to make magnets, used in electric vehicle motors or wind turbines, for example.
China dominates the global production of rare earths and its downstream processing, including magnet making. The U.S. and other Western nations seek to diversify their supply chains by promoting more domestic mining of rare earths and other critical minerals. EXIM has also indicated financing for an antimony mine in the U.S. earlier this year. The raw material is used to produce flame retardants and ammunition, for example.
Resource Estimate Ranks the Project Among the World’s Largest
According to a scoping study published in March (PDF), Halleck Creek ranks among the world’s largest rare earth deposits with an estimated 7.5 million tons of contained material, 24 percent of which are projected to be the coveted magnet rare earths. However, these figures are only estimations based on initial drilling studies, and the final reserves have yet to be determined.
While financing is one aspect of developing a mine, time is also a significant factor. From the initial exploration until a project can begin production, many years or even decades can pass as permits must be secured, studies conducted, and infrastructure constructed. Halleck Creek is still in the exploration stages. ARR expects the construction of process facilities alone to take three years.
Simplified mining cycle
Photo: iStock/slovegrove
