ABx Raises $1.33M, Advances Rare Earths and Bauxite Projects with Key Permits

Rare Earths Exploration Gains Momentum

ABx Group Limited (ASX: ABX) has made notable strides in its rare earths division during the March 2025 quarter, leveraging a bespoke remote sensing technology to identify new drilling targets in previously unexplored tenements in Tasmania. This technology, tested successfully on known deposits such as Deep Leads and Portrush, has now guided scout drilling in EL27/2022, south of the Portrush discovery, where historic assays indicated exceptionally high-grade rare earth oxides.

These developments come amid heightened global supply risks, with the US issuing executive orders to boost domestic critical minerals processing and China imposing export restrictions on medium to heavy rare earth elements like dysprosium and terbium, key components for high-performance magnets in electric vehicles, wind turbines, and military applications. ABx’s ionic adsorption clay resource, notable for its high heavy rare earth content and low radioactive elements, positions the company as a potential supplier to Western supply chains, including established relationships with US processors such as Ucore.

ALCORE Pilot Plant Advances with Key Equipment Orders

In the fluorine waste recycling segment, ABx’s ALCORE project marked a major milestone by placing orders for all critical equipment needed for its continuous pilot plant. The equipment, largely fabricated by experienced overseas suppliers, is expected to arrive by late 2025. This pilot plant aims to convert aluminium smelter bath waste into valuable industrial chemicals like hydrogen fluoride and aluminium fluoride, addressing Australia’s current reliance on imports for these critical materials.

Regulatory progress is also underway, with formal Environmental Effects Report guidelines received from EPA Tasmania and ongoing planning discussions with George Town Council. The project benefits from a $7.5 million federal grant under the Modern Manufacturing Initiative, underscoring government support for local critical mineral processing and recycling technologies.

Bauxite Projects Attract Interest Amid Global Supply Disruptions

ABx’s bauxite assets have gained renewed attention due to global supply disruptions, particularly in Guinea and China, which have driven metallurgical bauxite prices higher. The Sunrise Bauxite Project in Queensland is the focal point of ongoing discussions with multiple parties interested in securing supply, with ABx exploring options to accelerate value realization. The project’s scale and strategic location near ports enhance its attractiveness.

Meanwhile, in Tasmania, the DL130 Bauxite Project received an Environmental Permit from the EPA, with the Meander Valley Council currently assessing the development application. ABx has an existing supply agreement with Adelaide Brighton Cement Limited for cement-grade bauxite, reflecting the company’s strategy to selectively produce profitable bauxite grades for cement and fertiliser industries.

Corporate and Financial Position

Financially, ABx strengthened its position by raising a second tranche of $1.33 million through convertible notes, following an earlier $370,000 tranche. The company ended the quarter with $1.15 million in cash and $2.8 million in unused financing facilities, providing a runway of over five quarters at current expenditure levels. Exploration and development expenditures remain focused on rare earths and ALCORE research, with corporate costs managed prudently.

Looking ahead, ABx plans to continue exploration to pinpoint initial mining locations for rare earths, advance metallurgical studies, and progress ALCORE pilot plant construction. The company’s integrated approach across rare earths, fluorine recycling, and bauxite projects positions it well to capitalize on shifting global supply dynamics and increasing demand for critical materials.