ABx Group Ltd (ASX:ABX, OTC:AUSBF, FRA:A7B) earlier this week reported positive customer validation for its mixed rare earth carbonate produced from the Deep Leads – Rubble Mound and Wind Break deposits in Tasmania, marking a key milestone in the development of its rare earths business.
Managing director and CEO Mark Cooksey said the company had successfully produced two samples using a straightforward, commercially proven process, confirming the viability of its ionic clay resource. He noted that the first customer assessment indicated the product met requirements “just as is, no optimisation required,” highlighting the quality of the material and its readiness for potential market entry.
Cooksey explained that the project aligns with the fundamental criteria investors typically assess in resource developments: the existence of a defined resource, the ability to process it economically, and confirmation of market demand. With the Tasmanian resource already established and metallurgical work demonstrating low-cost processing potential, the latest customer feedback effectively validates the third component.
The company is now advancing engineering studies to determine the most efficient pathway to commercialisation. Cooksey said the focus is on evaluating different leaching methods, including tank, heap and in-situ approaches, to optimise cost, scalability and environmental outcomes. These studies are expected to define the economic parameters of the project and guide development decisions.
Environmental approvals remain an important consideration, particularly in Tasmania. Cooksey stated that the region has a long history of mining and that ABx has previously demonstrated its ability to operate responsibly, including the successful rehabilitation of earlier bauxite operations. The company is progressing approvals with a focus on best practice to support future development.
In parallel, ABx is advancing its ALCORE clean fluorine technology, which converts aluminium smelter by-product into hydrogen fluoride, a key industrial chemical used in semiconductors and aluminium production. A larger pilot plant is currently under construction in Bell Bay and is expected to be operational before the end of the year.
Cooksey indicated that both the rare earths and fluorine projects offer comparable economics and capital requirements, with the company progressing both simultaneously. These dual development pathways present multiple potential catalysts, including engineering study outcomes, pilot plant results, and further customer engagement.
Key highlights
- ABx produced mixed rare earth carbonate from Tasmania
- First customer validation confirms product meets requirements
- Low impurity levels (~2%) enhance product attractiveness
- Project ticks key investment criteria: resource, process, demand
- Engineering studies underway to optimise processing method
- Multiple leaching pathways under evaluation
- Strong mining support and track record in Tasmania
- ALCORE fluorine project progressing to larger pilot plant
- Bauxite project also advancing alongside rare earths
- Company pursuing multiple near-term and long-term revenue streams
Proactive: Welcome back to Proactive Investors. I’m your host, Kerry Stevenson. ABx Group Limited Managing Director and CEO Dr Mark Cooksey joins us. The company has announced a first formal customer assessment on its mixed rare earth carbonate from its Tasmanian project.
Mark Cooksey: I think that’s right. The world is looking for more rare earths, particularly heavier ones. Our ionic clay project is low cost to process and can produce a mixed carbonate with high heavy rare earth content. That’s what we’ve demonstrated, producing two samples using a straightforward, commercially proven process. The first customer said it looks great “just as is, no optimisation required.”
Proactive: What does that mean from an investor perspective in terms of commercialisation?
Mark Cooksey: Investors should look at whether there’s a resource, whether it can be processed economically, and whether customers want the product. We already have a resource in Tasmania and have demonstrated low-cost processing potential. This announcement confirms we can produce a product customers want to buy.
Proactive: What are the next steps?
Mark Cooksey: The focus now is on project economics. We need to determine how much we can produce and at what cost. That involves engineering studies, including evaluating different leaching methods such as tank, heap, or in-situ options.
Proactive: What about environmental approvals in Tasmania?
Mark Cooksey: Tasmania is supportive, with a strong mining history. We’ve previously mined bauxite there with good community support and full rehabilitation. We are advancing approvals and aiming to demonstrate best practice.
Proactive: Can you update us on your clean fluorine project?
Mark Cooksey: The ALCORE technology converts aluminium smelter by-product into hydrogen fluoride, a key industrial chemical. We’ve proven it at lab and small pilot scale and are now building a larger pilot plant in Bell Bay, Tasmania, expected to be operational before year-end.
Proactive: Which project will generate revenue first?
Mark Cooksey: Both projects are attractive with similar economics and capital requirements. We are progressing both in parallel.