Funding and Regulatory Hurdles Loom as ABx Pushes Rare Earth and Bauxite Development

Rare Earth Exploration Breakthroughs

ABx Group Limited has reported encouraging results from its recent scout drilling program in Tasmania, targeting rare earth elements (REE) 52 kilometres east of its established Deep Leads resource. Over 30% of the holes intersected mineralisation meeting the cut-off grade, supporting the potential expansion of its rare earth resource base. Mineral Resources Tasmania has approved a substantial 85-hole drilling campaign pending landholder consent and weather conditions, signalling confidence in the project's prospects.

The company is also advancing metallurgical testing and processing studies, aiming to produce a mixed rare earth carbonate (MREC) with a high proportion of valuable heavy rare earths such as dysprosium and terbium. A 100-kilogram sample has been sent to the Australian Nuclear Science and Technology Organisation (ANSTO) for processing, underscoring ABx’s commitment to refining its product for Western supply chains.

ALCORE Fluorine Recycling Pilot Plant Progress

In parallel, ABx is progressing its ALCORE project, which recycles fluorine waste from aluminium smelters into industrial chemicals including hydrogen fluoride and aluminium fluoride. The continuous pilot plant construction at the ALCORE Technical Facility in Bell Bay, Tasmania, remains on schedule with equipment deliveries expected by early 2026. The company is finalising environmental and safety assessments ahead of submission to regulators, reflecting a methodical approach to compliance and operational readiness.

Despite the conclusion of the Federal Government’s Modern Manufacturing Initiative grant program and a partial repayment requirement, ABx is negotiating a repayment schedule that aims to preserve project momentum. The ALCORE project addresses a critical supply gap in Australia’s fluorine chemical market, which currently relies entirely on imports, positioning ABx as a potential domestic supplier in a strategically important sector.

Bauxite Mining Developments in Queensland and Tasmania

ABx’s bauxite projects are also advancing. The Sunrise Bauxite Project in Queensland continues to attract strong interest from potential financiers and offtake partners, with site visits recently hosted by the company. This project aims to produce metallurgical grade bauxite for the aluminium industry, with initial production expected to ramp up to 1.5 million tonnes per year.

Meanwhile, the DL130 Bauxite Project in Tasmania received conditional planning permit approval from Meander Valley Council. ABx has appealed certain conditions related to road upgrades and transport restrictions, with mediation underway. The company’s strategy includes selective production of cement and fertiliser grade bauxite, supported by a recent supply agreement with Adelaide Brighton Cement Limited for the Birkenhead plant in South Australia.

Financial Position and Outlook

Financially, ABx reported operating cash outflows driven by exploration, research, and corporate costs, with cash reserves standing at $257,000 at quarter-end. The company is actively engaging with investors and strategic partners to secure additional funding, leveraging tax incentives and flexible operational plans to manage cash flow. ABx expresses confidence in continuing operations and meeting business objectives through these measures.

Overall, ABx Group is navigating the complex path of resource development with a diversified portfolio spanning rare earths, fluorine recycling, and bauxite mining. Its focus on high-value materials critical to clean energy and industrial supply chains positions it well for future growth, albeit with the usual risks inherent in exploration and project development.