Name of the Project
Koppamurra rare earths project.

Location
About 30 km south-east of Naracoorte, on the Limestone Coast of South Australia.

Project Owner/s
Rare earths and uranium explorer Australian Rare Earths.

Project Description
The June 2026 prefeasibility study (PFS) has validated Koppamurra as Australia's most advanced ionic clay rare earths project. The project’s ionic adsorption clay mineralisation supports shallow, free-dig openpit mining combined with a proven heap-leach flowsheet and rapid progressive rehabilitation. The PFS draws on a maiden ore reserve of 26-million tonnes at 920 parts per million total rare-earth oxides (TREOs) and processing capacity of three-million tonnes a year for an initial 12-year mine life.

The PFS envisages yearly production of mixed rare-earth oxide (MREO) feedstock containing an estimated 1 860 t of TREOs, including a strategically critical suite of magnet rare earths – neodymium and praseodymium (435 t), and dysprosium and terbium (57 t), along with yttrium (238 t), gadolinium (67 t), samarium (69 t) and lutetium (4 t).

Potential Job Creation
The project will support about 100 direct jobs during operations.

Net Present Value/Internal Rate of Return
In the base case, the project has an after-tax net present value (NPV), at an 8% discount rate, of A$858-million and an internal rate of return (IRR) of 99% on initial capital expenditure.

The project has a pretax NPV of A$1.196-billion and an IRR 113%.

Payback after-tax is estimated at nine months.

Capital Expenditure
Initial capital expenditure is estimated at A$178-million.

Planned Start/End Date
First production is targeted by 2029 when the mix of rare earths within Koppamurra’s MREO is expected to be in high demand from Western producers of rare earth permanent magnets – especially so with the new G7 stipulation that at least 40% of western rare earths supply must not come from China by 2030.

Latest Developments
The company will accelerate offtake discussions with strategic partners as pilot-scale operations deliver MREO samples to potential customers.

Key Contracts, Suppliers and Consultants
None disclosed.

Contact Details for Project Information
Australian Rare Earths, email hello@ar3.com.au.