ABx Group has signed a joint venture and farm-in agreement with Alumin Pty Ltd to develop its Sunrise bauxite mine and port project in Queensland. The mine has a minimum proposed 20-year operating life with the local council anticipating up to 50 direct employees on the operation and an additional 200 indirect jobs to be created.
The project has a development cost of $18 million with a construction date yet to be determined.
The area has some of the highest unemployment rates in Australia and ABx has committed to upskilling employees who require training.
Alumin is a private, special purpose acquisition vehicle registered last month and solely funded by ABx’s international trading partner Rawmin.
Situated 115 kilometres from Bundaberg Port and located between the towns of Mundubbera and Gayndah, the Binjour orebody at the Sunrise mine is anticipated to initially export 500,000 tonnes per year of metallurgical grade bauxite to customers in China and India.
The aim is for exports to reach two million tonnes per annum of the gibbsite-rich trihydrate bauxite, a type of bauxite that is able to be refined at lower temperatures, leading to significantly improved levels of energy efficiency.
Binjour has the highest quality metallurgical grade bauxite across the ABx tenements totalling 37 million tonnes. The first 10 to 15 years of operation will focus on high-grade zones requiring little processing.
Interestingly, the company says the deposit is also a potential source of halloysite clay that is used in nanotubes that have caused plenty of excitement in the technology world lately. Nanotubes are beginning to be utilised in numerous ways due to their incredible strength and minuscule size.
Ore will be trucked from the mine site to Bundaberg Port via Ban Ban Springs and Biggenden.
ABx Group CEO Dr Mark Cooksey said:
“It’s a great day to celebrate. We overcame many challenges and two years delay caused by border closures due to Covid. We gratefully acknowledge how supportive the state and local governments, as well as the community, have been over the years. These two Joint ventures – one comprising development of the bauxite mine and the other comprising port operations – are independent and will progress at different stages.”
While this announcement has been 10 years in the making, ABx hasn’t been watching the kettle boil.
The company’s subsidiary Alcore broke ground on the construction of an NSW pilot plant in December last year that will look to produce precursor chemicals for recycling aluminium smelter waste into high-value products such as aluminium fluoride.
Aluminium fluoride is typically used in the production of aluminium in welding applications and in ceramic glazes and enamels.
It also recently chose the subsidiary’s CEO, Dr Mark Cooksey, to run the ASX-listed parent after long-time leader Ian Levy said he was stepping down from the 1st of February but will continue to work on its rare earths exploration projects.
ABx was also the first company to discover clay-hosted rare earths in northern Tasmania, initially at the Deep Leads project and more recently at two new discoveries at the Portrush and Wind Break areas.
The Portrush discovery compliments the ongoing campaign at Deep Leads that has thrown up thicker and richer rare earth element results in recent drilling.
ABx is now set to roll out a more powerful multi-purpose rig to complete a major step-out drill program at Deep Leads and dive deeper into the potentially high-grade rare earths zone lying beneath the mineralised horizon at the prospect.
The company says its rare earth mineralisation at its Tasmanian ground has a distinct advantage over traditional hard rock rare earths deposits as it is dominated by the four highest value, super magnetic minerals being neodymium, praseodymium, terbium and dysprosium. All four are sought after commodities in the green energy, smartphone, electric vehicle and military segments.
ABx is at an interesting juncture - breaking new ground in rare earths exploration in Tasmania, bullet-proofing its refinery waste-to-product Alcore technology and breathing new life into its long-term Queensland bauxite project. The company appears set for a busy year.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
