OD6 Metals Targets Major Cost Savings with A$6M Chlor-Alkali Facility at Splinter Rock

• Onsite Chlor-Alkali Facility to produce Hydrochloric Acid and Sodium Hydroxide
• Significant reduction in reagent transport costs and environmental footprint
• Potential for selective production of high-value rare earth oxides (Nd, Pr, Dy, Tb)
• Modest capital cost with substantial operating cost savings
• Ongoing metallurgical testwork and drill campaign to refine project flowsheet

Strategic Upgrade at Splinter Rock

OD6 Metals has revealed a pivotal advancement in the development of its Splinter Rock Rare Earth Project in Western Australia. The company confirmed the integration of a Chlor-Alkali Facility (CAF) onsite, a move expected to materially reduce operating costs by producing key chemical reagents, Hydrochloric Acid (HCl) and Sodium Hydroxide (NaOH), in-house rather than relying on costly and environmentally taxing transport from Perth, some 800 kilometres away.

This facility leverages abundant local solar sea salt as feedstock, converting it through electrolysis into essential reagents that underpin the rare earth extraction process. The modest capital investment, estimated at around A$6 million per electrolyser unit, is outweighed by the operational efficiencies and sustainability gains.

Enhancing Project Economics and Environmental Profile

By producing HCl and NaOH onsite, OD6 Metals not only slashes reagent logistics costs but also significantly reduces the project’s environmental footprint. The elimination of long-distance liquid chemical transport aligns with growing industry and investor demands for greener mining operations.

Moreover, the CAF unlocks strategic flexibility by enabling a chloride-based solvent extraction process. This could allow selective production of neodymium, praseodymium, dysprosium, and terbium oxides, high-value rare earth elements critical to permanent magnet supply chains, with 100% payability. Such selective extraction would elevate the project’s product quality and market competitiveness.

Ongoing Technical and Commercial Progress

OD6 is advancing metallurgical testwork in collaboration with CPC Engineering and the Australian Nuclear Science and Technology Organisation (ANSTO). The Optioneering Study underway is assessing multiple technically viable flowsheets to identify the optimal balance of cost, recovery, scalability, and product quality.

Complementing this, a new drill campaign is set to commence, supplying fresh material for further testwork and scale-up validation. Concurrently, OD6 continues to engage with government bodies, financing partners, and potential offtake customers, laying the groundwork for project financing and commercialisation.

Positioning for a World-Class Rare Earth Operation

Splinter Rock hosts one of Australia’s largest and highest-grade clay-hosted rare earth deposits, with an indicated resource of 119 million tonnes at 1,632 parts per million total rare earth oxides. The project’s conceptual heap leach development, combined with these flowsheet improvements, positions OD6 Metals to deliver a long-life, sustainable rare earth operation that meets growing global demand for critical minerals.

Managing Director Brett Hazelden emphasised the value of the CAF, highlighting its dual role in cost reduction and enabling selective oxide production. This strategic infrastructure addition marks a significant step forward in the project’s evolution from resource to refined product supplier.

Bottom Line?

OD6’s onsite reagent production could redefine rare earth project economics and sustainability, setting the stage for selective high-value oxide output.

Questions in the middle?

• What will be the final preferred flowsheet from the Optioneering Study and its impact on project costs?
• How will the hybrid renewable energy system for powering the CAF be implemented and financed?
• What are the timelines and terms for potential offtake agreements for selective rare earth oxides?