How Australian Rare Earths Is Advancing Production and Expanding Uranium Drilling
Australian Rare Earths Limited (ASX, AR3) reported strong progress in its Koppamurra Rare Earths Project with high recovery rates and production milestones, while also expanding and resuming drilling at its Overland Uranium Project. The company bolstered its financial position through government grants and option exercises.
- Produced ~34kg of Mixed Rare Earth Oxide from leach solution
- Achieved 99% recovery of magnet rare earths via low-cost precipitation
- Expanded Overland Uranium Project tenure by 972 km² and resumed drilling
- Received $1 million government grant installment and strong cash position
- Established Koppamurra Community Consultative Committee and engaged globally
Progress at Koppamurra Rare Earths Project
Australian Rare Earths Limited (ASX, AR3) has marked a significant quarter advancing its Koppamurra Rare Earths Project in South Australia and Victoria. The company successfully produced approximately 34 kilograms of Mixed Rare Earth Oxide (MREO) from about 1,800 litres of pregnant leach solution (PLS), a critical intermediate step towards generating a marketable Mixed Rare Earth Carbonate (MREC). This milestone underscores the potential scalability and cost-effectiveness of AR3’s processing approach.
Testwork conducted with the Australian Nuclear Science and Technology Organisation (ANSTO) demonstrated an impressive 99% recovery rate of magnet rare earth elements such as neodymium, praseodymium, terbium, and dysprosium using a low-cost magnesium oxide precipitation process. The process also achieved a 98% reduction in solution volume, enhancing downstream processing flexibility and operational efficiency.
Expanding Uranium Exploration at Overland
In parallel, AR3 expanded its Overland Uranium Project tenure by an additional 972 square kilometres, bringing the total to approximately 7,700 square kilometres. Drilling activities resumed in July 2025, focusing on testing historic gamma anomalies and targeting in-situ recovery (ISR) amenable uranium deposits. This systematic exploration aims to validate the uranium potential of the region, building on earlier encouraging results.
Financial Strength and Strategic Engagements
Financially, AR3 ended the quarter with a robust cash position of $4.1 million, bolstered by a $1 million installment from the Australian Government’s International Partnerships in Critical Minerals grant program. Post-quarter, the company received additional funds from option exercises and a research and development tax refund, further strengthening its liquidity.
On the corporate front, AR3 actively participated in key international critical minerals events, including the Rare Earth Mines, Magnets and Motors Summit in Toronto and the opening of Neo Performance Materials’ new rare earth processing facility in Estonia. The company also joined Austrade’s US Critical Minerals Delegation, engaging with senior officials to advance Australia’s role in securing critical minerals supply chains.
Community and Governance Initiatives
Locally, AR3 established the Koppamurra Community Consultative Committee to foster ongoing dialogue with the Limestone Coast community. This initiative reflects the company’s commitment to responsible development that balances environmental sensitivity with economic opportunity, aiming to create local jobs and attract investment while supporting Australia’s clean energy transition.
Looking ahead, AR3 is progressing metallurgical testwork and a Pre-Feasibility Study (PFS) to de-risk the production pathway and validate the efficiency of its flowsheet. The company is also optimizing impurity removal and MREC precipitation processes to meet specifications set by its technical partner, Neo Performance Materials, which holds a non-binding offtake agreement for half of Phase 1 production.
Bottom Line?
With technical milestones achieved and strategic expansions underway, AR3 is positioning itself as a key player in Australia’s critical minerals landscape, but upcoming PFS results and drilling outcomes will be pivotal.
Questions in the middle?
- How will AR3’s Pre-Feasibility Study outcomes influence project financing and timelines?
- What are the prospects for scaling up production to meet Neo Performance Materials’ offtake requirements?
- How might uranium exploration results at Overland impact AR3’s portfolio diversification and valuation?
