ABx Group has announced a breakthrough with its second mixed rare earth carbonate sample from Tasmania’s Deep Leads deposit, boasting higher heavy rare earth content and fewer impurities. This advancement enhances project flexibility and strengthens ABx’s position in the competitive rare earths market.
- Second MREC sample produced via column leach by ANSTO
- Higher proportions of valuable heavy rare earths dysprosium and terbium
- Significantly reduced impurities including aluminium and iron
- Supports flexible processing options and ongoing engineering studies
- Strategic partnerships and strong resource underpin market potential
A Step Up in Rare Earth Quality
ABx Group Limited (ASX:ABX) has unveiled a significant milestone in its rare earths development with the production of a second mixed rare earth carbonate (MREC) sample from its Deep Leads deposit in northern Tasmania. Produced by the Australian Nuclear Science and Technology Organisation (ANSTO) through column leach testwork, this new sample surpasses the maiden MREC in quality, featuring higher concentrations of the most valuable heavy rare earth elements, dysprosium (Dy) and terbium (Tb), while containing markedly fewer impurities such as aluminium and iron.
This enhanced purity is crucial given the strategic importance of heavy rare earths in high-tech and clean energy applications, where supply constraints have driven prices to premium levels globally. ABx’s ability to produce such a high-grade product using a relatively simple and low-cost three-step process, leaching, impurity removal, and precipitation, positions the company well to meet growing demand.
Flexibility and Optimisation Potential
ABx’s Managing Director, Mark Cooksey, highlighted that the second MREC sample demonstrates the company’s capacity to generate high-quality product using either tank or column leach methods. This flexibility offers broad scope for optimising processing routes, potentially lowering costs and improving environmental outcomes. The sample was derived from a 100-kilogram bulk sample taken from trial pit DLP002, underscoring the practical progress from exploration to product development.
Importantly, the second MREC sample contains significantly less cerium, a less valuable rare earth, and maintains uranium and thorium levels well within international safety standards. These factors enhance the product’s attractiveness to refineries and end-users seeking reliable, low-impurity feedstocks.
Strategic Partnerships and Market Context
ABx’s progress comes amid strong market dynamics for rare earths, particularly heavy rare earth oxides like dysprosium and terbium, which command prices exceeding US$200/kg and US$900/kg respectively in China, with even higher premiums in Europe. The company has already secured a Memorandum of Understanding with Ucore Rare Metals, a North American rare earth processing firm, and is in discussions with additional potential offtake partners, signalling growing commercial interest.
The Deep Leads resource itself is substantial, with an estimated 89 million tonnes averaging 844 parts per million total rare earth oxides, including the highest dysprosium and terbium concentrations of any Australian ionic clay deposit. Notably, this resource estimate covers less than a third of the mineralised area, suggesting significant upside potential.
Looking Ahead
The second MREC sample not only enables ABx to expand its sample distribution to prospective customers but also provides critical data for ongoing engineering studies aimed at refining the project’s economics and scalability. The company awaits gamma-counting results to confirm radioactivity levels, expected in May, which will be pivotal for regulatory compliance and market acceptance.
With rare earths playing an increasingly vital role in clean technologies and geopolitical supply chains, ABx’s advancements at Deep Leads could mark a turning point in Australia’s rare earths sector, offering a competitive, high-quality source of critical materials outside China.
Bottom Line?
ABx’s enhanced rare earth carbonate sample signals growing momentum, but upcoming regulatory and commercial milestones will be key to unlocking its full market potential.
Questions in the middle?
- Will the gamma-counting results confirm regulatory compliance for commercial production?
- How will ABx’s processing flexibility translate into cost advantages at scale?
- What progress will ABx make in securing binding offtake agreements with global partners?