Exploration company Australian Rare Earths (AR3) has received a $5m Federal Government grant towards developing a new industry in the Limestone Coast that it believes will create local jobs and investment.
AR3 is currently progressing the Koppamurra Project, which spans 7600km2 from near Naracoorte to western Victoria. The company will match the grant funding, bringing the total investment to $10m.
The Federal Government support will assist AR3 to conduct metallurgical testing, undertake a prefeasibility study and develop a demonstration plant.
AR3 chief executive Travis Beinke said AR3 has a vision to create a new industry that will generate wealth in the Limestone Coast through jobs and investment in local businesses.
“We will employ locals and increase our need for local goods and services,” he said.
“The ripple effect of more money being spent in the local economy will have great social benefits, helping the community thrive for future generations.
“This new industry is an opportunity to educate and skill young people, enabling them to forge careers and raise families in the region where they were raised.
“The prefeasibility study will comprehensively evaluate the project from technical and environmental perspectives. The preferred mining method of progressive heap leaching and rapid rehabilitation will be further investigated. It uses less water and electricity, making it the most environmentally and economically sustainable option.
“AR3 is looking at a rapid rehabilitation mining operation that returns farming to the land in a much shorter timeframe than traditional mining practices.
“The prefeasibility study will help us determine the design and exact location of the demonstration plant.”
Mr Beinke said initial drilling results have established Koppamurra as a globally significant rare earths resource.
“These critical minerals are vital in the production of electric vehicles and wind turbines as Australia lowers carbon emissions,” he said.
“The Koppamurra Project is one of the most advanced ionic clay rare earths projects in Australia with AR3 now moving towards a Mining Licence application. The proposed Mining Lease covers 20km2 in South Australia with a portion of this area expected to be mined.
“AR3 has a MOU agreement with Canadian rare earths firm, Neo Performance Materials to purchase processed minerals from AR3 for further refinement at its European facilities.
“We are encouraged by the funding support through the Federal Government’s International Partnerships in Critical Minerals Program. It is a vote of confidence in our plans to help strengthen sovereign capability.
“We welcome the opportunity to work with government and the private sector to build local capability for further downstream processing.”
Mr Beinke said AR3 is also commissioning an independent Social and Economic Impact Assessment to identify and quantify the opportunities and benefits a rare earths industry presents to the local community in which it will operate.
“This is in addition to ongoing rigorous and exhaustive environmental studies including groundwater and soil investigations,” he said.
“We believe mining and agriculture can co-exist with mutual benefits and we’re investigating where we may be able to improve soil quality in some areas.
“Our studies must demonstrate no negative impact on groundwater or soil. AR3 will lodge an application to mine once we are satisfied we can operate in an environmentally sustainable and economically viable way. We are confident that we can do this.
“We look forward to providing updates on the results of our studies as we work towards creating a new industry with another revenue stream for the region and South Australia while serving the nation’s net zero target and meeting a global need.”
