ABx Group Limited reports strong progress in rare earth extraction and clean chemical production, backed by strategic investments and a recent $3 million capital raise.
- Heavy rare earth extraction achieves up to 73% terbium and 72% dysprosium
- ALCORE pilot plant construction on schedule with overseas R&D funding approved
- Good Importing International to invest up to $5.4 million in Queensland bauxite project
- Completed $3 million placement to support Deep Leads and working capital
- Regulatory appeals ongoing for Tasmanian bauxite project with mediation underway
Rare Earths Breakthroughs in Tasmania
ABx Group Limited (ASX, ABX) has reported a series of technical and strategic milestones in its quarterly update to 30 September 2025, reinforcing its position as a key player in supplying critical materials for a cleaner future. The company’s Deep Leads project in Tasmania continues to deliver promising results, with Australian Nuclear Science and Technology Organisation (ANSTO) confirming exceptionally high extraction rates of heavy rare earth elements dysprosium (Dy) and terbium (Tb). Achieving up to 72% Dy and 73% Tb extraction under mild acidic conditions signals a potentially efficient and environmentally friendlier processing route.
These extraction rates are significant given the growing global demand for heavy rare earths, which are essential for permanent magnets used in electric vehicles, wind turbines, and advanced electronics. ABx’s ability to produce a mixed rare earth carbonate (MREC) product sample by Q4 2025 is a critical step toward commercialisation and customer evaluation, particularly targeting supply chains in North America and Europe.
ALCORE Pilot Plant Advances Clean Chemical Production
Parallel to its rare earths progress, ABx’s ALCORE project is advancing steadily with the construction of a continuous pilot plant at Bell Bay, Tasmania. This facility aims to produce hydrogen fluoride and aluminium fluoride from aluminium smelter by-products, tapping into a market currently reliant on imports. The project recently secured AusIndustry approval for overseas R&D funding, acknowledging the necessity of international collaboration for specialised engineering and equipment supply.
ALCORE’s innovative approach addresses a critical supply gap in Australia’s fluorine chemical market, with potential applications spanning refrigerants, polymers, solar cells, and lithium-ion batteries. The company is also pursuing a Commercialisation and Growth Grant from the Federal Government, which could provide up to $5 million to support scaling efforts.
Strategic Investments in Bauxite Projects
On the bauxite front, ABx has entered transformative agreements with Good Importing International (GII), which will invest up to $5.4 million to acquire a majority stake in the Sunrise Bauxite Project in Queensland. GII also holds an exclusive option to invest $4.8 million in ABx’s Taralga and Penrose bauxite projects in New South Wales. These investments are poised to accelerate near-term production plans, targeting metallurgical, cement, and fertiliser-grade bauxite markets.
While regulatory approvals for the DL130 Bauxite Project in Tasmania have been granted, ABx is engaged in ongoing mediation following appeals related to road access conditions. The resolution of these matters will be pivotal for the company’s ability to recommence mining activities in the region.
Financial Position and Outlook
ABx completed a $3 million placement led by Alpine Capital to fund its Deep Leads development and working capital requirements. Despite net cash outflows from operating and investing activities during the quarter, the company maintains a healthy cash balance of over $3 million, sufficient to cover more than four quarters of current expenditure. This financial footing supports ABx’s multi-pronged growth strategy across rare earths, clean chemical production, and bauxite mining.
Looking ahead, ABx’s focus will be on delivering the MREC product sample for customer evaluation, advancing ALCORE’s pilot plant commissioning, and progressing regulatory and operational milestones in its bauxite projects. The company’s integrated approach positions it well to capitalize on the rising demand for critical materials essential to the energy transition and industrial innovation.
Bottom Line?
ABx’s technical breakthroughs and strategic partnerships set the stage for critical material supply growth, but regulatory and market execution remain key hurdles.
Questions in the middle?
- Will ANSTO’s upcoming MREC sample evaluations translate into binding offtake agreements?
- How will the resolution of Tasmanian regulatory appeals impact the timeline for DL130 bauxite production?
- What are the commercial prospects and timelines for scaling ALCORE’s fluorine chemical production?