ABx Group (ASX:ABX) has this week taken an important step along the pathway to creating a solution to a major Australian strategic supply risk and the future local production of rare earth metals, with the company’s 83%-owned subsidiary ALCORE submitting an environmental effects report (EER) as it prepares to begin construction of a unique hydrogen fluoride pilot plant in Tasmania.
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Hydrogen fluoride is a precursor chemical for aluminium fluoride, refrigerants, fluoropolymers and battery chemicals and is essential in the manufacturing processes for semiconductors and solar cells.
It is mainly produced from fluorspar, which is obtained from the mineral fluorite. Australia does not mine any fluorite or produce any fluorspar, hydrogen fluoride, or fluorochemicals, meaning it must import all its requirements.
Notably, Australia is the world’s largest producer of aluminium metal without domestic aluminium fluoride production, an essential chemical for aluminium smelting.
Fluorine is also required for rare earth metal production, and the use of hydrogen fluoride to process rare earth ores is currently being investigated.
ABx Group’s managing director and CEO, Dr Mark Cooksey, told shareholders today that the submission of the EER is a major milestone as it demonstrates that environmental management has been incorporated into both the process design and proposed operating framework for the pilot plant.
“The establishment of the pilot plant is proceeding well, encompassing minor civil works, site power upgrade, equipment design and manufacture and balance-of-plant design,” Mr Cooksey explained today.
The first equipment will be delivered in April, with assembly planned for Q2 and Q3 CY26. The commissioning of the pilot plant is expected to start in late Q3 CY26.
Because of the importance of fluorochemicals and the supply risks, fluorspar (or fluorine) is recognised as a critical mineral by Australia, the U.S., Europe, Japan, and Canada.
Dr Cooksey said the ALCORE process for hydrogen fluoride production provides a solution to Australia’s strategic supply risk for hydrogen fluoride and fluorochemicals. ALCORE is in discussions with companies active in these fields.
The global market for hydrogen fluoride is more than US$3 billion.
ABX is down -4.35%, to 6.6¢. Mkt cap $25.82M.
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