ABx Group Limited’s (ASX: ABX) 83%-owned subsidiary, ALCORE Limited, has taken a pivotal step forward in advancing its groundbreaking chemical recycling technology. ALCORE has entered a lease agreement with Rio Tinto Aluminium Limited for a facility adjacent to Rio Tinto’s Bell Bay aluminium smelter in northern Tasmania. The site will host ALCORE’s continuous pilot plant to demonstrate its proprietary process for converting aluminium smelting waste into valuable industrial chemicals, including hydrogen fluoride, which will be further processed into aluminium fluoride, an essential input for aluminium production.
Closing the Loop on Aluminium Smelting
Aluminium fluoride is critical for aluminium smelting, but Australia currently imports 100% of its supply. ALCORE’s process, which transforms waste materials into hydrogen fluoride and subsequently aluminium fluoride, promises not only to close this supply chain gap but also to significantly enhance sustainability.
The initiative exemplifies the principles of the circular economy by turning smelting by-products into value-added chemicals. If successful, the project could play a role in reshaping the aluminium industry’s environmental footprint while providing a reliable, locally produced source of aluminium fluoride.
Prime Location and Strategic Collaboration
Rio Tino Bell Bay smelter (Credit Rio Tinto)
The Bell Bay site offers strategic advantages, including proximity to key infrastructure and access to local engineering expertise. The leased facility, a 500-square-metre industrial building, requires minimal modification, allowing ALCORE to progress quickly towards commissioning the pilot plant.
Rio Tinto Bell Bay Aluminium General Manager, Richard Curtis, expressed enthusiasm for the partnership, stating:
“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. If ABx can do this locally, that’s good for the community and the State of Tasmania, so we are happy to contribute to this pilot plant.”
The lease agreement includes a reduced rental rate as part of Rio Tinto’s support for the project. Additionally, ALCORE has the option to purchase or extend the lease for ten years if the pilot plant proves successful and transitions to commercial-scale production.
Funding and Progress
The Tasmanian Government has demonstrated its commitment to the project by offering a conditional $1 million loan at zero interest for the first two years. This funding, alongside recent capital raised by ABx, will support the development of the pilot plant, with equipment orders expected to commence in Q1 2025.
Mark Cooksey, Managing Director and CEO of ABx Group, highlighted the significance of these developments:
“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. This is a significant advantage as we move closer to our goal of recycling fluorine waste into industrial chemicals at a commercial scale.”
A Potential Game-Changer for the Aluminium Industry
The successful implementation of the pilot plant will set the stage for commercial-scale production, solidifying Australia’s position as a leader in sustainable industrial innovation. For ALCORE and ABx, the project not only represents a leap forward in chemical recycling technology but also underscores the importance of industry collaboration in achieving transformative outcomes.
As the pilot plant progresses, the industry will be closely watching ALCORE’s strides in bringing its innovative vision to life, potentially setting a new standard for resource efficiency and environmental stewardship in aluminium smelting.