ABx Group Limited (ASX: ABX) and its subsidiary ALCORE Limited have taken a significant step towards establishing a new recycling facility in northern Tasmania.
The companies have entered into a lease agreement with Rio Tinto Aluminium Limited for an industrial site adjacent to the Bell Bay aluminium smelter.
The agreement allows ALCORE to set up a pilot plant to demonstrate its proprietary process for producing industrial chemicals, including hydrogen fluoride, from aluminium smelting waste.
This innovative approach aims to convert hydrogen fluoride into aluminium fluoride, a crucial component in aluminium smelting that is currently entirely imported to Australia.
Mark Cooksey, ABx Group’s Managing Director and CEO, emphasised the significance of this development, stating: “Securing the facility at Bell Bay is a critical step in advancing our continuous pilot plant.
“The location is ideal, offering proximity to key infrastructure while allowing us to progress rapidly with minimal upfront costs.”
The 500-square-metre facility, which has previously supported various industrial developments, comes with essential utilities and convenient access to local engineering services.
ALCORE plans to make minor modifications to accommodate the continuous pilot plant, with the site offering the potential for future expansion into a small commercial plant.
This project has garnered support from the Tasmanian government, which recently provided indicative terms for a conditional $1 million loan for the pilot plant.
The collaboration with Rio Tinto includes a commercial lease agreement at a reduced rate, contributing to the pilot plant and project costs.
Richard Curtis, Rio Tinto Bell Bay Aluminium General Manager, expressed enthusiasm for the project, noting: “Currently all aluminium smelters in Australia import aluminium fluoride, so if a way can be found to produce it from a waste product, that makes economic and environmental sense.”
ALCORE is moving swiftly with the project, having already initiated the process for securing environmental and planning approvals.
The company expects to place orders for most of the key equipment for the pilot plant in the first quarter of 2025.
This collaboration between ABx Group, ALCORE, and Rio Tinto represents a significant step towards creating a circular economy in the aluminium industry, potentially reducing waste and import dependency while fostering local production of essential chemicals.
