ABx Ends Core Refining Deal, Advances Cost-Cutting Aluminium Fluoride Tech
ABx Group and Core Refining have mutually terminated their licence agreement as ABx pivots to a more cost-effective and sustainable method for producing aluminium fluoride, advancing the ALCORE project into its continuous pilot phase in Tasmania.
- Termination of 2017 Heads of Agreement between ABx and Core Refining
- Shift from bauxite-based to aluminium smelter bath waste for fluorine source
- ALCORE progresses to continuous pilot plant stage at Bell Bay, Tasmania
- Sale of Berkeley Vale laboratory to Core Refining for $1 as part of termination
- Simplification of operations to focus on commercial-scale production
Background and Agreement Termination
ABx Group Limited (ASX: ABX) and Core Refining have jointly ended their Heads of Agreement originally signed in 2017, which granted ABx a global licence to use Core Refining's intellectual property (IP) for producing aluminium fluoride from bauxite. This move marks a significant strategic pivot for ABx’s ALCORE project, which is focused on developing innovative methods to produce hydrogen fluoride and aluminium fluoride.
The Core Refining IP involved refining various ore types using fluorine acids, a process integral to the initial stages of ALCORE’s development. However, as the project evolved, ABx identified a superior and more sustainable approach that no longer requires Core Refining’s technology.
Strategic Shift to Aluminium Smelter Bath Waste
ABx’s ALCORE subsidiary discovered that using aluminium smelter bath waste as the fluorine source for hydrogen fluoride and aluminium fluoride production offers substantial operating cost reductions compared to the original bauxite-based method. This alternative not only cuts costs but also delivers an environmental benefit by recycling industrial waste, aligning with ABx’s commitment to sustainable practices.
This breakthrough has rendered the Core Refining IP redundant for ALCORE’s purposes, prompting the mutual termination of the licence agreement. As part of this process, ALCORE will sell its Berkeley Vale laboratory facility back to Core Refining for a nominal sum of $1, consistent with the original agreement terms.
Progression to Continuous Pilot Plant in Tasmania
Following the termination, ALCORE is advancing to the continuous pilot plant stage, leasing an industrial facility adjacent to Rio Tinto’s Bell Bay aluminium smelter in northern Tasmania. This marks a critical step toward scaling the technology from laboratory to commercial production. Key equipment, including the batch pilot plant, is being relocated from Berkeley Vale, NSW, to Tasmania to support this transition.
ABx’s Managing Director and CEO, Mark Cooksey, emphasised that cancelling the agreement simplifies operations and removes unnecessary complexity, allowing the company to focus on commercialising its innovative fluorine recycling technology.
Implications for ABx and the ALCORE Project
This strategic realignment positions ABx to potentially disrupt the aluminium fluoride market by offering a lower-cost, environmentally friendly alternative to traditional production methods reliant on imported materials. The move also underscores ABx’s broader commitment to sustainable resource development and industrial waste recycling.
While the termination closes a chapter on the partnership with Core Refining, it opens a new one focused on operational efficiency and commercial scalability. Investors and industry watchers will be keen to monitor the progress of the Bell Bay pilot plant and subsequent steps toward full-scale production.
Bottom Line?
ABx’s decisive pivot to a waste-based fluorine source could redefine its ALCORE project’s commercial trajectory and environmental impact.
Questions in the middle?
- How will the cost savings from using aluminium smelter bath waste impact ALCORE’s profitability?
- What are the timelines and milestones for scaling the continuous pilot plant to commercial production?
- Could ABx’s new process disrupt existing aluminium fluoride supply chains and imports?