ABx Group (ASX:ABX) is an Australian resource company specialising in sustainable materials, focusing on bauxite mining and innovative value-added products. Its 83%-owned subsidiary, ALCORE, develops advanced recycling technologies to transform aluminium smelter waste into critical compounds like aluminium fluoride and hydrogen fluoride, which are essential for aluminium production and industrial applications. Two key areas of focus for the company are creation of an iconic absorption clay rate earth project in northern Tasmania and establishment of a plant to produce hydrogen fluoride to replace imports.
The Tasmanian Government loan to provide growth
This approved proposal will allow ALCORE to establish a continuous pilot plant to demonstrate its world-first proprietary process to produce industrial chemicals, including hydrogen fluoride, from a waste product created during the aluminium smelting process. The pilot plant operated by ALCORE in Tasmania focuses on recycling aluminium smelter waste, specifically smelter bath material, to produce hydrogen fluoride and aluminium fluoride. Hydrogen fluoride is a precursor to aluminium fluoride, which is essential for aluminium smelting. The process demonstrates an innovative approach to the circular economy by converting waste materials into valuable resources while reducing environmental impact.
The aluminium fluoride produced is used in the electrolytic process of aluminium production, improving energy efficiency and reducing operating costs for smelters. This initiative supports local industry and promotes resource sustainability.
The $1M zero-interest loan strengthens ALCORE’s financial footing, enabling the pilot plant’s construction. It enhances the company’s profile as a leader in sustainable industrial innovation while potentially reducing operational costs and increasing revenue by producing locally demanded aluminium fluoride.
This will allow ALCORE to gain a competitive edge against leading market competitors such as Floursid S.p.A and Rio Tinto Alcan Inc, a major player in the aluminium industry, involved in the production of aluminium fluoride. ALCORE’s innovative approach of recycling smelter waste into aluminium fluoride positions it uniquely in the market, potentially offering cost and environmental advantages over traditional production methods.
Company to take on Chinese production for Aluminium Fluoride
1.2 million tonnes of this product is produced globally per year worth US $1.5 billion, where 50% is produced in China. Therefore, Australia relies heavily on imported aluminium fluoride, primarily from China creating a critical supply chain risk. This dependency exposes the company and the industry to price volatility and potential disruptions in supply.
The local production from the plant reduces reliance on imports ensuring a stable and secure supply. Furthermore, excess bath a byproduct of aluminium smelting is often treated as waste, thus contributing to disposal costs and environmental concerns. ALCORE’s longer term plan is to expand the plant by 15 times which will process all of Australia’s aluminium smelter bath and supply more than 80% of Australia’s aluminium fluoride requirements.
Tackling multifaceted environmental issues
ALCORE’s technology transforms this waste into valuable chemicals, creating a new revenue stream for the company. This approach supports a circular economy and reduces the environment footprint of aluminium production. This practise will also benefit ESG practices by adopting sustainable practices and reduce waste, positioning the company as a leading in environmentally friendly industrial practises. This move will appeal to investors and stakeholders focused on ESG performance.