Australian Rare Earths (ASX:AR3) received notification from the South Australian Department for Energy and Mining (DEM) that an authorized investigation is being launched under the Mining Act 1971, according to a Tuesday Australian bourse filing.

The letter relates to the company's exploration program for environment protection and rehabilitation (EPEPR) conditions on two of the company's exploration licenses and requests for written evidence of compliance with drill hole decommissioning requirements.

The company believes it meets all statutory and environmental requirements and complies with the EPEPR conditions and will fully cooperate with DEM and submit the requested information within the stipulated timeframe.

The company's shares rose past 5% in recent Tuesday trade.