Cadoux’s Dual Critical Minerals Projects Face Key Investment Decisions Amid Market Uncertainties
Cadoux Limited has made significant progress in its High Purity Alumina and Minhub rare earth projects during Q1 2025, advancing engineering studies, securing key contracts, and strengthening ESG initiatives while preparing for commercialisation.
- HPA Front End Engineering Design (FEED) studies progressing with key engineering contracts awarded
- Minhub feasibility study draft finalised, with report collation underway
- Positive customer engagement on HPA samples targeting battery and energy storage sectors
- Received ~$687,000 R&D rebate for Minhub project from ATO
- Continued ESG activities including leadership presentations and industry collaboration
Engineering Progress Drives Project Development
Emerging critical minerals producer Cadoux Limited (ASX: CCM) has reported robust advancement in its dual critical mineral projects during the March 2025 quarter. The company’s focus remained on engineering studies and optimisation for its High Purity Alumina (HPA) project in Western Australia and the Minhub rare earths beneficiation facility in the Northern Territory.
Cadoux is currently executing a staged development approach for its HPA project, progressing through the Front End Engineering Design (FEED) phase for its Small Scale Production (SSP) plant in Kwinana. This phase is critical to finalising detailed process designs, equipment specifications, and cost estimates ahead of the Financial Investment Decision (FID). The company successfully completed the selection process for key engineering services and awarded mandates to specialist European suppliers, underscoring its commitment to technical excellence and cost control.
Customer Engagement and Product Development
On the commercial front, Cadoux has engaged with potential customers in the lithium-ion battery manufacturing and innovative energy storage sectors. Early assessments of HPA samples have been positive, reflecting the material’s ultra-high purity and tailored finishing capabilities. The company’s collaboration with universities and R&D partners, including Curtin University, continues to explore downstream applications, aiming to leverage HPA’s unique properties in high-tech markets such as electric vehicles and semiconductors.
Minhub Project Nears Feasibility Completion
Meanwhile, the Minhub mineral separation plant project in Darwin has reached a significant milestone with the draft feasibility study (FS) finalised and report collation nearing completion. The FS, prepared by IHC Mining with input from TZMI International, confirms the technical viability of processing third-party mineral sands concentrates to produce rare earth minerals like monazite and xenotime. This project aligns with Australia’s strategic objective to develop sovereign processing capabilities amid global supply chain uncertainties, particularly given recent export controls imposed by China on critical rare earths.
Minhub has also secured a renewed collaboration agreement with Gippsland Critical Minerals Pty Ltd for feedstock supply, positioning the project for downstream refining opportunities. The company received an R&D rebate of approximately $687,000 from the Australian Taxation Office, reflecting ongoing investment in innovation.
Sustainability and ESG Leadership
Cadoux continues to embed Environmental, Social, and Governance (ESG) principles into its operations. The company’s ESG activities during the quarter included staff training on regulatory frameworks, active participation in industry ESG working groups, and public leadership by its ESG director, Dr Sandy Chong. Dr Chong’s presentations at global forums such as the World Economic Forum and International Women’s Day events highlight Cadoux’s commitment to diversity, sustainability, and responsible mining practices.
These efforts support Cadoux’s positioning as a low-carbon producer aligned with the United Nations Sustainable Development Goals, enhancing its license to operate and appeal to environmentally conscious stakeholders.
Financial Position and Outlook
Financially, Cadoux ended the quarter with a cash balance of approximately $2.69 million, up from $2.43 million at the end of December 2024. Operating cash outflows were modest at $305,000 for the quarter, reflecting disciplined expenditure on engineering and development activities. The company plans to continue advancing engineering workstreams, site permitting, and R&D collaborations in the coming quarter, alongside a board decision regarding the acquisition of the remaining 50% interest in Minhub Operations Pty Ltd.
With the global HPA market forecast to grow at over 19% CAGR and certain segments reaching nearly 30%, Cadoux’s dual focus on HPA and rare earths positions it well to capitalise on the accelerating demand driven by electrification, semiconductor growth, and green energy transitions.
Bottom Line?
Cadoux’s steady engineering progress and ESG leadership set the stage for critical investment decisions that could unlock significant value in the burgeoning critical minerals sector.
Questions in the middle?
- When will Cadoux make its final investment decision on the HPA commercial-scale plant?
- What are the terms and timing for the potential acquisition of the remaining 50% of Minhub Operations Pty Ltd?
- How will evolving market conditions for rare earths and HPA impact project economics and customer demand?
