Tasmania’s ABx MREC Basket Price Surges Up to 51% Above Peers

A Milestone in Rare Earths Production

ABx Group Limited (ASX, ABX) has announced a significant breakthrough with the production of its first mixed rare earth carbonate (MREC) sample from the Deep Leads deposit in northern Tasmania. This milestone, achieved in partnership with the Australian Nuclear Science and Technology Organisation (ANSTO), marks a critical step towards commercialising a rare earth product that is essential for green technologies such as electric vehicle motors and wind turbines.

The MREC produced contains exceptionally high levels of dysprosium (Dy) and terbium (Tb), two heavy rare earth elements that are in acute global supply shortage. ABx’s sample boasts Dy and Tb contents 2.8 to 4.7 times greater than comparable peer MRECs, positioning it as a premium product in the rare earths market.

Superior Composition Drives Higher Value

Beyond the standout DyTb content, the ABx MREC also features the highest proportions of other valuable heavy rare earths and impressively low levels of impurities such as aluminium, uranium, and thorium. These characteristics contribute to a calculated basket price for the ABx MREC that is between 17% and 51% higher than peer products, underscoring its commercial attractiveness.

Mark Cooksey, ABx’s Managing Director and CEO, highlighted the significance of this achievement, noting that the Deep Leads project offers a rare combination of resource size, grade, and strategic location near existing infrastructure. He emphasized the company’s eagerness to engage with potential customers who are particularly seeking high DyTb content with minimal impurities.

Strategic Implications for Supply Chains

The production of a high-purity MREC is a crucial milestone not only for ABx but also for the broader rare earth supply chain, which is seeking reliable, low-cost sources outside of China. The ionic rare earths from Deep Leads can be extracted efficiently at ambient temperatures and pressures, potentially lowering production costs and impurity levels compared to other deposits globally.

ABx has already formalized a Memorandum of Understanding with Ucore Rare Metals, a North American rare earth processing company, and is in discussions with other potential offtake partners. This positions ABx well to supply critical materials for the growing demand in electric vehicles, renewable energy, and advanced technologies.

Next Steps and Outlook

Following this successful MREC production, ABx is advancing further metallurgical testing, including column leach tests on bulk samples, with preliminary results expected soon. The company plans to share MREC samples with prospective customers to facilitate evaluation and deepen commercial discussions.

With a resource estimate of 89 million tonnes averaging 844 parts per million total rare earth oxides, including the highest DyTb content of any ionic clay deposit in Australia, Deep Leads stands out as a compelling rare earth project. The coming months will be critical as ABx moves from demonstration to potential commercial supply.