Regulatory Appeals and Pilot Plant Risks Shadow ABx’s 2026 Production Ambitions
ABx Group Limited has reported significant progress across its rare earths, fluorine chemical, and bauxite mining projects, underpinned by a $6 million capital raise and promising metallurgical results.
- High-value mixed rare earth carbonate produced with superior dysprosium and terbium content
- Positive metallurgical tests confirm feasibility of heap leaching for rare earth extraction
- Pilot plant development for clean fluorine chemicals on track for mid-2026 completion
- Strategic partnerships advance bauxite project ownership and funding, targeting 2026 mining start
- Successful $6 million equity placement strengthens financial position for project development
Rare Earths Breakthrough in Tasmania
ABx Group Limited (ASX – ABX) has marked a series of milestones in its rare earths program, notably with the Australian Nuclear Science and Technology Organisation (ANSTO) producing the first mixed rare earth carbonate (MREC) from the Deep Leads deposit in northern Tasmania. This MREC boasts dysprosium and terbium levels 2.8 to 4.7 times higher than comparable products, translating into a basket price up to 44% above peers. These heavy rare earths are critical for high-performance permanent magnets used in electric vehicles, wind turbines, and other advanced technologies.
Complementing this, preliminary metallurgical column leach tests on bulk samples have demonstrated over 80% total rare earth extraction, including more than 70% for dysprosium and terbium. These results not only exceed expectations but also validate the technical feasibility of heap leaching; a lower-cost, scalable extraction method; offering ABx flexibility in project design and optimisation.
Clean Fluorine Chemicals Pilot Plant Progress
On the industrial chemicals front, ABx’s ALCORE subsidiary is advancing its pilot plant at Bell Bay, Tasmania, aiming to produce hydrogen fluoride and aluminium fluoride from aluminium smelter by-products. The continuous pilot plant is fully funded and scheduled for completion in the second quarter of 2026, with major equipment deliveries commencing early in the year. This initiative addresses Australia’s current reliance on imported fluorine chemicals, tapping into a global market exceeding US$3 billion annually and supporting emerging sectors like lithium-ion batteries and solar cells.
Bauxite Mining and Strategic Partnerships
ABx is also progressing its bauxite projects with strategic partner Good Importing International (GII), which has made a $2.7 million payment to earn a 70% stake in ABx’s Sunrise Bauxite Project in Queensland. GII holds an exclusive option to invest $4.8 million for a 75% interest in the Taralga and Penrose bauxite projects in New South Wales. These developments position ABx to commence bauxite mining in 2026, capitalising on recent global price spikes and demand for metallurgical, cement, and fertiliser-grade bauxite.
Meanwhile, in Tasmania, ABx is navigating planning permit appeals for its DL130 Bauxite Project, with mining lease approvals in place and mediation ongoing. The company has also secured a supply agreement with Adelaide Brighton Cement Limited for cement-grade bauxite, underscoring its commitment to profitable, near-term production.
Financial and Corporate Highlights
Supporting these operational advances, ABx successfully raised approximately $6 million through a share placement to sophisticated and professional investors, bolstering its balance sheet for ongoing exploration, pilot plant commissioning, and project development. The company continues to expand its exploration portfolio in Tasmania, with new tenements granted and promising assay results reported, including high rare earth oxide concentrations near the surface.
ABx’s strategy to become Australia’s first ionic adsorption clay rare earth producer, combined with its innovative approach to fluorine chemical production and bauxite mining, reflects a diversified and forward-looking portfolio aligned with global supply chain security and clean technology demand.
Bottom Line?
With robust technical progress and strategic funding in place, ABx is poised to transform its rare earths and bauxite assets into commercial realities, though regulatory approvals and pilot plant outcomes remain key near-term milestones.
Questions in the middle?
- How will ABx navigate the ongoing planning permit appeals for its DL130 Bauxite Project?
- What are the prospects for securing long-term offtake agreements for the high-value MREC product?
- Can the ALCORE pilot plant achieve commercial-scale production and customer adoption as planned?
