ABx Group Limited (ASX:ABX) and its 83-owned subsidiary, ALCORE Limited, are making significant progress in advancing their innovative projects, with the Tasmanian Government providing strong support for their groundbreaking initiative. ALCORE has received indicative terms and conditions for a $1 million zero-interest loan to build and operate a continuous pilot plant in Tasmania. This facility will demonstrate ALCORE’s proprietary process for producing industrial chemicals, including hydrogen fluoride, from aluminum smelting waste, a pioneering example of the circular economy in action.
The conditional loan underlines the Tasmanian Government’s confidence in ALCORE’s potential to revolutionize waste management in the aluminum industry while reducing reliance on imported aluminum fluoride, a key chemical for the merger. The plant is expected to become a precursor to commercial-scale operation.
Mark Cooksey, Managing Director and CEO of ABx Group, highlighted this as a key step forward:
“Receiving support from the Tasmanian Government is recognition of ALCORE’s potential and allows us to begin construction of the continuous pilot plant. This is a significant advantage as we move closer to our goal of recycling fluorinated waste into industrial chemicals on a commercial scale. The next 12 months will be very exciting for ALCORE. »
Progress Made on Pilot Plant and Strategic Location
ALCORE is in advanced discussions to finalize the pilot plant location, with Bell Bay, Tasmania, emerging as a likely choice. The planned pilot plant is expected to achieve even greater fluoride recovery efficiency, building on the record 97% achieved in recent testing at ALCORE’s test facility in New South Wales.
This project reflects ALCORE’s commitment to sustainability and innovation, converting industrial waste into valuable chemicals and addressing global supply chain challenges in the aluminum sector.
Rare earth developments strengthen ABx portfolio
At the same time, ABx continues to make strategic advances in its rare earth exploration projects, which complement the ALCORE initiative. Recent drilling campaigns near the Deep Leads discovery have yielded promising results, extending rare earth mineralization across the shelf. In-house metallurgical testing has reduced dependence on external laboratories, thereby increasing operational efficiency.
Notably, ABx signed a memorandum of understanding (MOU) with Ucore Rare Metals, a Canadian company, to explore a binding offtake agreement for rare earth carbonate products and potential investment opportunities. This agreement aligns with ABx’s long-term strategy to expand its rare earths footprint and attract strategic partnerships.
Financial Updates and Market Outlook
Although ABx has made progress in its rare earths and ALCORE initiatives, the company continues to require additional capital to advance its programs. Securing a $948,000 R&D tax break and a $70,000 drilling grant brought temporary funding relief, but the focus remains on securing a capital injection more important.
Rare earth prices remain weak due to slower-than-expected demand for electric vehicles, but the long-term outlook remains positive as global economies transition to cleaner technologies.
A solid foundation for growth
ABx’s constant innovation and strategic partnerships position it as a leader in the development of sustainable industrial solutions and rare earth exploration. The Tasmanian Government’s support for ALCORE is a crucial step in demonstrating the viability of its proprietary process and strengthening its commercial appeal.
As ABx progresses its ambitious program, the next 12 months promise to be transformative, not only for the ALCORE pilot plant, but also for the broader portfolio of projects that drive the long-term growth of the ‘business.
