ABx Group’s (ASX:ABX) 83% owned subsidiary ALCORE has engaged engineering consultants and contractors to support the continuous pilot plant project adjacent to the Bell Bay aluminium smelter in Tasmania.
Those engaged include South African consulting service and fluorochemical equipment manufacturer BFluor Chemicals, and global specialist provider of innovative engineering solutions Kempe Engineering.
ABx, which has a market capitalisation of $9.76 million, says regulatory processes are also progressing, with ALCORE receiving formal guidelines for an environmental effects report from EPA Tasmania.
This news comes after ALCORE previously submitted a notice of intent for the pilot plant’s development. In conjunction, ALCORE has progressed discussions with the George Town Council regarding planning approval requirements.
ABx adds that key equipment required for the pilot plant has been ordered, including an oleum plant, bath reactors, scrubbers, cooling tower, and various ancillary process components.
The equipment is expected to be delivered by late this year.
CEO Dr Mark Cooksey says placing orders for the major equipment is a step forward.
“We are entering an exciting phase of execution, and with the support of the federal government, Tasmanian Government and Rio Tinto (ASX:RIO), we’re confident that Bell Bay will become a key hub for progressing ALCORE’s world-first proprietary technology,” Cooksey says.
ABx adds that final documentation for the $1 million loan from the Tasmanian Government is expected to be executed in the coming weeks. The zero-interest, conditional loan will support the construction and operation of the pilot plant.
As Mining.com.au previously reported, the pilot plant will be established at the leased industrial facility adjacent to Rio Tinto’s Bell Bay aluminium smelter. The facility comprises a 500m2 building with access to local engineering services and suppliers.
The pilot plant will demonstrate ALCORE’s world-first proprietary process to produce industrial chemicals, including hydrogen fluoride, from a waste product created during the aluminium smelting process.
In the planned subsequent commercial plant, hydrogen will be converted to aluminium fluoride — which is an essential chemical for aluminium smelting that is currently 100% imported.
Hydrogen fluoride is an essential component for producing fluorocarbons and aluminium fluoride. Aluminium fluoride is an essential chemical for aluminium metal production.
ABx notes that Australia is the largest producer of primary aluminium metal without its domestic aluminium fluoride production, so Australian aluminium smelters rely on imported aluminium fluoride, typically more than 80% from China.
Write to Aaliyah Rogan at Mining.com.au
Images: ABx Group
