ABx Advances Rare Earths and Bauxite Projects Amid Rising Global Demand

Rare Earths Project Gains Momentum

ABx Group has made notable strides in its ionic adsorption clay rare earth project located in Tasmania. The company developed an improved geological model for its Deep Leads and Rubble Mound resource areas, enhancing its ability to pinpoint the most prospective zones within its tenements. Complementing this, ABx has established in-house desorption testing facilities that offer cost-effective and reproducible results, supplementing tests conducted by the Australian Nuclear Science and Technology Organisation (ANSTO). These advancements are critical as ABx aims to produce a mixed rare earth carbonate (MREC) product, with ongoing discussions targeting customers in North America and Europe, particularly for heavy rare earths like dysprosium and terbium, which face acute supply risks globally.

ALCORE Pilot Plant Secures Strategic Support

In a significant development, ABx’s ALCORE division secured a lease agreement with Rio Tinto for an industrial facility adjacent to the Bell Bay aluminium smelter in Tasmania. This site will host a continuous pilot plant designed to produce hydrogen fluoride and aluminium fluoride from aluminium smelter waste, a world-first proprietary process. The Tasmanian Government has also extended indicative terms for a $1 million zero-interest conditional loan to support this pilot plant, underscoring governmental commitment to fostering critical mineral technologies. The relocation of ALCORE’s technology centre from NSW to Tasmania marks a strategic consolidation, with major equipment orders anticipated in the first quarter of 2025.

Bauxite Assets Benefit from Market Dynamics

ABx’s bauxite projects across Queensland, Tasmania, and New South Wales have gained renewed value amid a surge in global bauxite prices, driven by supply disruptions in China and Guinea. The Sunrise Bauxite Project in Queensland, boasting a JORC-compliant resource of 37 million tonnes, remains a focal point with ongoing negotiations for long-term offtake agreements. Meanwhile, in Tasmania, ABx is progressing environmental approvals for the DL130 Bauxite Project, targeting cement and fertiliser-grade bauxite. The company’s agreement with Adelaide Brighton Cement Limited for supply to its South Australian operations further validates the commercial potential of these assets.

Corporate and Financial Position

To underpin its development activities, ABx secured binding commitments for a $1.8 million placement through convertible notes, with $370,000 already received and the remainder subject to shareholder approval. Despite a net cash outflow from operations and investing activities during the quarter, the company maintains access to nearly $3 million held in trust and retains flexibility to scale activities or seek additional funding. ABx’s ESG reporting continues to evolve, reflecting its commitment to governance, environmental stewardship, and social responsibility.

Outlook and Strategic Focus

ABx is positioned at the intersection of critical mineral supply and sustainable industrial innovation. Its rare earths project leverages Tasmania’s unique ionic adsorption clay deposits, offering a lower capital intensity and higher heavy rare earth content than traditional mineral sources. Concurrently, ALCORE’s circular economy approach to recycling aluminium smelter waste into essential industrial chemicals addresses both supply chain vulnerabilities and environmental challenges. The company’s bauxite operations stand to benefit from tightening global supply and rising prices. The coming quarters will be pivotal as ABx advances pilot plant operations, finalises supply agreements, and navigates funding pathways to commercialisation.