We consider a system consisting of a one-dimensional lattice gas of electrons with a finite concentration of magnetic impurities. The host electrons propagate with nearest-neighbor hopping $t$, constrained by the excluded multiple occupancy of the lattice sites, and interact with electrons on neighboring sites via spin exchange $J$ and a charge interaction. The host is integrable at the supersymmetric point $J=2t$, where charges and spin form a SU(3) BBB permutation algebra (this differs from the graded FFB superalgebra of the traditional supersymmetric $t\ensuremath{-}J$ model, where B and F stand for boronic and fermionic degree of freedom). Without destroying the integrability, we introduce a finite concentration of impurities of arbitrary spin $S$, which hybridize with the conduction states of the host. We derive the Bethe ansatz equations diagonalizing the correlated host with impurities and discuss the ground-state properties as a function of magnetic field and the Kondo exchange coupling. While an isolated impurity of spin $Sg1/2$ has a magnetic ground state of effective spin $S\ensuremath{-}\frac{1}{2}$, a finite concentration introduces an additional Dirac sea (the impurity band), which gives rise to a singlet ground state. The impurities are antiferromagnetically correlated and frustrated in zero field. As a function of the field, first the narrow impurity band is spin polarized. The Van Hove singularities of the spin-rapidity bands define critical fields at which the susceptibility diverges. The impurities have in general mixed valent properties induced in part by the correlations in the host. Some of the aspects of the model are related to heavy-fermion alloys. A distribution of Kondo temperatures may give rise to non-Fermi-liquid properties.
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