Abx Group Limited · ASX:ABX
Abx — Corporate Update (June 2024)
41 slides from Abx's corporate update, Jun 5, 2024
Slide 1: ABx Group Open Day Presentation (ASX Announcement)
ASX Announcement 5 June 2024 ASX: ABX ABx Group Open Day Presentation ABx Group (ASX: ABX) (“ABx” or “the Company”) is pleased to provide a copy of the Company’s latest presentation to be delivered at the ABx Group Open Day event, held at its 83%-owned subsidiary ALCORE’s Technology Centre on the NS
Slide 2: Open Day Presentation
For personal use only (ASX:ABX) Open Day Presentation 5 June 2024 Page 1
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by ABx Group Limited ACN 139 494 885 (“ABx” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those secu
Slide 4: Delivering materials for a cleaner future
For personal use only Delivering materials for a cleaner future • Creation of an ionic adsorption clay rare earth Exploration Development Technology project in northern Tasmania • Establishment of a plant to produce hydrogen fluoride and aluminium fluoride from recycled industrial waste, to replace
Slide 5: Management and Board
Dr Mark Cooksey (Managing Director and CEO) • More than 20 years with Rio Tinto and CSIRO Board of Directors (Alcore) • Worked closely with aluminium and other metal industries • Significant experience in commercialising new Hon Paul Lennon AO (Chair) technologies and processes For personal use only
Slide 6: ESG
ESG • ABx Group has commenced disclosing For personal use only environmental, social, and governance (ESG) metrics, using the internationally accepted Stakeholder Capitalism Metrics developed by the World Economic Forum • ABx Group has subscribed to Socialsuite’s reporting platform to assist with mo
Slide 7: Businesses
Businesses For personal use only Reprocessing aluminium smelter waste Ionic adsorption clay rare earths Bauxite operations ASX: ABX Page 6 6
Slide 8: Australian aluminium industry
Australian aluminium industry Bauxite Alumina Aluminium For personal use only Refining Smelting • Australia is one of the very few nations that supplies aluminium across the whole supply chain from mining to fabrication. Material Australia rank Bauxite #1 Alumina #2 Aluminium #7 Bauxite Exploration
Slide 9: Government industry policy
Government industry policy For personal use only Australian government has recognised aluminium as a Strategic Material 1. Deliver 2. Use of 3. Prioritise the 4. Environmental 5. Development of internationally a. Production Tax Australian aluminium approval processes long-term strategic competitive
Slide 10: Fluorine value chain
Fluorine value chain For personal use only Hydrogen Aluminium Fluorite Fluorspar fluoride fluoride Steelmaking Electronic manufacture Aluminium production Graphite purification Fluorochemicals Material Australian production (t) Fluorite 0 Fluorspar 0 • Fluorine added to Australia’s Critical Minerals
Slide 11: Aluminium fluoride and aluminium smelter bath
Aluminium fluoride and aluminium smelter bath Aluminium fluoride (AlF3): essential for aluminium smelting For personal use only • 1.2 million tonnes produced globally per year worth US$1.5 billion (US$1,000-1,800 per tonne) • 50% produced in China, mainly for Chinese smelters • Australia is the larg
Slide 12: Closing the fluorine loop
Closing the fluorine loop Smelter bath • We have developed a process to produce For personal use only hydrogen fluoride from aluminium smelter bath • Via 83%-owned subsidiary, ALCORE Aluminium • Hydrogen fluoride can be converted to smelting aluminium fluoride using an existing commercial process •
Slide 13: Process flowsheet
Process flowsheet For personal use only Smelter bath Metal HF production sulfates Developed by Alcore Sulfuric acid Hydrogen fluoride Aluminium fluoride Alumina AlF3 production Existing commercial process trihydrate Water Overall energy consumption: ~1 kWh/kg AlF3 ASX: ABX 12
Slide 14: Customer and supplier engagement
Customer and supplier engagement Aluminium smelters For personal use only Intensive engagement with Australian and international smelters: • Commercial discussions on purchase of aluminium fluoride, and supply of bath and alumina trihydrate • Endorsement for grant applications • Assessment of alumin
Slide 15: The economic advantage of replacing fluorspar
The economic advantage of replacing fluorspar A rare opportunity that is financially, strategically and environmentally attractive For personal use only • Chart shows illustrative operating costs for producing aluminium fluoride • ALCORE process produces same Utilities, labour, aluminium fluoride pr
Slide 16: Process economics
Process economics A rare opportunity that is financially, strategically and environmentally attractive For personal use only Estimated Estimated operating Estimated AlF3 price FX rate AlF3 price Scenario operating cost margin* EBITDA* (US$/t) USD:AUD (A$/t) (A$/t AlF3) (A$/t AlF3) (A$m) Baseline $1,
Slide 17: Team
Dr Mark Cooksey (Managing Director) Team • More than 20 years with Rio Tinto (aluminium smelting) and CSIRO • Significant experience in developing and commercialising new processes in minerals and metals industry For personal use only • PhD in Chemical & Materials Engineering • High calibre chemical
Slide 18: Process scale-up
Process scale-up • Rigorous scale-up to reduce technical risk For personal use only • First aluminium fluoride plant planned for Bell Bay, Tasmania, near existing hydro-powered aluminium smelter. Planned production 20,000 t/y • High potential for plants in other major aluminium smelting regions • Po
Slide 19: Technical Progress and Update
Technical Progress and Update 2022 Laboratory Strategy Research Update For personal use only 2023 Pilot Batch Reactor (MKII) Progress 2024 Continuous Pilot Plant Design ASX: ABX 18
Slide 20: Laboratory Equipment and Experiments
Laboratory Equipment and Experiments Objectives • Enhance fundamental understandings of bath reactions with sulfuric acid For personal use only • Maximise bath fluorine conversion using available lab equipment Step 1 - Laboratory Rotary kiln (LRK) Step 2 – Ring Mill & Muffle Furnace ASX: ABX 19
Slide 21: Laboratory Scale Achievements
Laboratory Scale Achievements Equip. Number Outcomes 100% Fluorine Conversion 90.5% For personal use only of Exp. Tested various feed for reaction mechanistic study; 90% Rotary Identified workable process conditions; 85.8% 30 Kiln (LRK) Investigated material transformation during 79.5% process
Slide 22: Process Material Transformation
Process Material Transformation For personal use only Tapped Bath(as received) Ground Bath H2SO4 Regime of sludge with increasing viscosity Regime of solid with decreasing hardness 0% 50% 70% 100% Tapped Bath Fluorine Conversion (%) ASX: ABX 21
Slide 23: Process Reactor Configuration
Process Reactor Configuration Double Shaft Kneader (1st Stage) and Rotary Kiln with Internal Slug Return (2nd Stage) For personal use only Double Shaft Kneader Rotary Kiln Internal Design ASX: ABX 22
Slide 24: Pilot Batch Reactor Overview
Pilot Batch Reactor Overview Operation Mass Balance – 4 kg Crushed Bath For personal use only – 6 kg H2SO4 – 2.3 kg HF – 7.7 kg Solid Products – 50% Filling Rate Ball Mill Ultrasound assisted screener ASX: ABX 23
Slide 25: Pilot Batch Reactor Progress
Pilot Batch Reactor Progress Fluorine Conversion For personal use only 100% 92.3% (2.1%) 90% 85.8% Commercial Fluorspar Process 80.3% (4.0%) (5.1%) 80% • Typical fluorine content in solid 71.8% (7.4%) product is 0.6 – 3% 70% • Process benchmark is < 1% fluorine 60% in solid product, equivalent to <
Slide 26: Continuous Pilot Plant Overview
Continuous Pilot Plant Overview Main Objectives For personal use only – Demonstrate continuous operation – Validate HF Spec. for AlF3 production – Optimise process conditions – Develop optimal scale up parameters Consists of – Oleum production module – Bath reaction module – Gas scrubbing module – U
Slide 27: Future Technical Plan
Future Technical Plan For personal use only Metal Sulfate Product Development 2025 Continuous Pilot Plant Construction ASX: ABX 26
Slide 28: Businesses
Businesses For personal use only Reprocessing aluminium smelter waste Ionic adsorption clay rare earths Bauxite operations ASX: ABX Page 27 27
Slide 29: Rare earths market
Rare earths market • 15+ rare earth elements (REEs) used in wide variety of applications, with demand growing rapidly For personal use only • China dominates rare earths markets, especially heavy rare earths such as Tb and Dy • Prices of different rare earths vary significantly because: • Proportion
Slide 30: Permanent magnet rare earths
Permanent magnet rare earths • Essential for electric vehicles and wind turbines Super For personal use only • Represent over 90% of value of rare earths consumption Magnets • Forecast to grow at 7% per year to 2040 %market %market volume value 9% Nd Pr e.g. catalysts, glass Neodymium Praseodymium p
Slide 31: Ionic adsorption clay (IAC) rare earth deposits
Ionic adsorption clay (IAC) rare earth deposits • Contain much higher proportion of higher value, heavy rare earths For personal use only • Historically only mined in southern China Terbium + Other Heavy Dysprosium REO ABx has the highest proportion of Dy+Tb of any clay-hosted Praseodymium Praseodym
Slide 32: Requirements for an ionic clay rare earth project
Requirements for an ionic clay rare earth project For personal use only Mineral Resource Jurisdiction • Size • Regulatory approval • Grade • Community support • Mineralogy • Government support • Strip ratio • Supply chain security Infrastructure Company Resources • Transport • People • Water • Partn
Slide 33: ABx rare earth discoveries in Tasmania
ABx rare earth discoveries in Tasmania For personal use only ABx is first company to discover rare earths in Tasmania • Four discoveries spanning 100 km2 (1) • Newly granted tenements add over 450 km2 (2) Highest proportion of DyTb of any clay- hosted resource in Australia3 Highest ionic component r
Slide 34: Rare Earths Resource Estimate
Rare Earths Resource Estimate • Upgrade to 89 Mt announced May 20241 For personal use only • Over 10-fold increase in 12 months Application area. This will be reduced Wind Break to easily accessible areas only. Size Cut-off (ppm Mean TREO Mean TREO- DyTb3 Leech Scrub TREO-CeO2) (ppm) CeO2 (ppm) (%TR
Slide 35: Not all clays are created equal
Not all clays are created equal Ionic proportion is king For personal use only Cost and Price (per kg proudct) • Chart shows illustrative relationship between ionic Product price proportion and operating cost • For low ionic proportion, reagent costs alone can be higher than Operating cost product p
Slide 36: Infrastructure
Infrastructure Transport For personal use only • <20 km to major highway • <100 km to deepwater Bell Bay port Labour • <50 km to Launceston (pop 65,000) Water • High availability in Tasmania Energy • Close to major transmission lines Source: ABX ASX Announcement, 22 January 2024 ASX: ABX 35
Slide 37: Jurisdiction
Jurisdiction Westbury Australia For personal use only • NATO partner • Major mining jurisdiction Tasmania • Extensive mining history: tin, copper, zinc, lead, gold • Supportive regulatory environment Westbury region • Mostly commercial forest plantations ASX: ABX 36
Slide 38: Resources and People
Ian Levy (geology) Resources • 30 years of senior management and geological experience People • with multiple commodities, including at WMC Previously CEO of Allegiance Mining and Director of Gloucester Coal For personal use only • Member of JORC for 11 years (4 years as Vice Chairman) • High calibr
Slide 39: ABx ticks all the boxes for an ionic clay rare earth project
ABx ticks all the boxes for an ionic clay rare earth project For personal use only Highest proportion of DyTb of any clay-hosted resource in Australia Highest ionic proportion reported in Australia, comparable to operations in China Mineral Resource Jurisdiction Infrastructure Company Resource
Slide 40: ABx rare earths strategy
ABx rare earths strategy Strategy For personal use only • Rapidly develop low-cost production of mixed rare earth carbonate (MREC) • Sell MREC to third party refinery • We operate only where welcomed Plan • Laboratory and pilot plant studies • Estimate CAPEX and OPEX • Customer engagement • Explorat
Slide 41: ABx Group Limited
For personal use only ABx Group Limited www.abxgroup.com.au Level 4, 100 Albert Rd South Melbourne VIC 3205 Australia Phone: +61 3 9692 7222 E: corporate@abxgroup.com.au Mark Cooksey Managing Director and CEO E: mcooksey@abxgroup.com.au