Australian Bauxite Limited to build pilot plant to expand aluminium fluoride production

Australian Bauxite Limited is eyeing to expand aluminium fluoride production and thus, establishing a pilot plant on the mainland. The subsidiary, Alcore, initially aims at starting a commercial production at Bell Bay with a 10,000 tonnes per year capacity before ramping it up over time to 60,000 tonnes per year.

"At current cost scenarios, this could achieve an EBITDA (earnings before interest, tax, depreciation and amortisation) of approximately $50 million per annum," said Sydney-headquartered Australian Bauxite in the September quarterly report.

The company believes that the expansion of aluminium fluoride production capacity in Bell Bay, Tasmania, will provide a secured supply of raw material to Australian aluminium production, which is worth more than $4.5 billion per year.

Australian Bauxite Limited also noted that results from process flowsheet modelling for a commercial of 10,000 tonnes per year plant increased confidence in Alcore’s process and supported its approach to process development.

Australian aluminium smelters rely entirely on imported aluminium fluoride, 70 per cent of which comes from China, but this proportion has reduced by 60 per cent or more this year with the upcoming pilot plant project plan.

Alcore expects the project to start with about 50 jobs, potentially rising to several hundred in the future. To this, Australian Bauxite added the progress of its mining lease for Fingal Rail deposit in the Midlands.

"A bulk sample of fertiliser-grade bauxite is being extracted for evaluation by a local fertiliser manufacturer that considers ABx bauxite to be an essential ingredient in their superphosphate," said Australian Bauxite.