ABx Group Limited (ASX:ABX) and its 83%-owned subsidiary, ALCORE Limited, are making significant strides in advancing their innovative projects, with the Tasmanian Government extending robust support for their groundbreaking initiative. ALCORE has received indicative terms and conditions for a $1 million zero-interest loan to construct and operate a continuous pilot plant in Tasmania. This facility will demonstrate ALCORE’s proprietary process for producing industrial chemicals, including hydrogen fluoride, from aluminium smelting waste—a pioneering example of the circular economy in action.
The conditional loan underscores the Tasmanian Government's confidence in ALCORE’s potential to revolutionize waste management in the aluminium industry while reducing reliance on imported aluminium fluoride, a critical smelting chemical. The plant is expected to become a precursor to a commercial-scale operation.
Mark Cooksey, Managing Director and CEO of ABx Group, highlighted the milestone as a key step forward:
"Securing the support of the Tasmanian Government is an endorsement of ALCORE’s potential and allows us to commence construction of the continuous pilot plant. This is a significant advantage as we move closer to our goal of recycling fluorine waste into industrial chemicals at commercial scale. The next 12 months will be very exciting for ALCORE."
Progress on the Pilot Plant and Strategic Location
ALCORE is in advanced discussions to finalize the location of the pilot plant, with Bell Bay, Tasmania, emerging as a likely choice. The planned pilot plant is expected to achieve even greater fluorine recovery efficiency, building on the record 97% achieved in recent tests at ALCORE’s New South Wales test facility.
This project reflects ALCORE’s commitment to sustainability and innovation, converting industrial waste into valuable chemicals and addressing global supply chain challenges in the aluminium sector.
Rare Earth Developments Strengthen ABx’s Portfolio
Meanwhile, ABx continues to make strategic progress in its rare earths exploration projects, which complement the ALCORE initiative. Recent drilling campaigns near the Deep Leads discovery yielded promising results, extending rare earth mineralization across the plateau. In-house metallurgical testing has reduced dependence on external labs, bolstering 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
While ABx achieved progress in its rare earths and ALCORE initiatives, the company continues to require additional capital to advance its programs. The receipt of a $948K R&D tax rebate and a $70K drilling grant have provided temporary funding relief, but the focus remains on securing a larger capital injection.
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 Strong Foundation for Growth
ABx’s consistent innovation and strategic partnerships position it as a leader in developing sustainable industrial solutions and rare earth exploration. The Tasmanian Government's support for ALCORE is a pivotal step in demonstrating the viability of its proprietary process and enhancing its commercial appeal.
As ABx progresses its ambitious agenda, the next 12 months promise to be transformative, not just for ALCORE’s pilot plant but for the broader portfolio of projects driving the company’s long-term growth.
