Announcement PDF 2023 Annual Report The Distinctive ABx Strategy ABx Group (ASX:ABX) is a uniquely positioned, high-tech Australian company at the cutting-edge of providing the global market with muchneeded new supplies of strategic minerals (rare earth elements & bauxite) and chemicals (aluminium fluoride - essential for aluminium smelting). Delivering materials for a cleaner future Development Rare Earth Elements & Bauxite Discovering and developing niche deposits Developing innovative chemical engineering processes 2 22 ABx GROUP ANNUAL REPORT 2023 Table of Contents: Corporate Directory …... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Highlights 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Letter from the Chairman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Review of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Tenements, Resources and Listing Rule Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Director’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Remuneration Report -Audited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Consolidated Statement of Profit or Loss and Other Comprehensive Income . . . . . . . . . . . . . . . . . 36 Consolidated Statement of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Consolidated Statement of Changes in Equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Consolidated Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Directors’ Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Independent Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Shareholder Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Corporate Directory ABx Group Limited ACN 139 494 885 ABN 14 139 494 885 Registered and Corporate Office Level 4, 100 Albert Road South Melbourne VIC 3205 Telephone: +61 3 9692 7222 Fax: +61 2 9956 7355 Email: corporate@abxgroup.com.au Website: www.abxgroup.com.au Auditor K.S. Black & Co Level 5, 350 Kent Street Sydney NSW 2000 Telephone: +61 2 8839 3000 Bankers Australia & New Zealand Banking Group Limited 20 Martin Place Sydney NSW 2000 Telephone: +61 2 9227 1818 St George Bank Limited Level 14, 182 George St Sydney NSW 2200 Telephone: +61 2 9236 2230 ABx GROUP ANNUAL REPORT 2023 Directors Paul Lennon (Non-Executive Chairman) Ian Levy (Non-Executive Director) Ken Boundy (Non-Executive Director) Dr Mark Cooksey (Managing Director & CEO) Company Secretary Mathew Watkins Share Registry Computershare Investor Services Pty Limited Level 3, 60 Carrington Street Sydney NSW 2000, Australia Telephone: 1300 850 505 ASX Code – ABX ABx Group Limited shares are listed on the Australian Securities Exchange. This financial report covers the Consolidated Entity consisting ABx Group Limited and its controlled entities. ABX Group Limited is a company limited by shares, incorporated and domiciled in Australia. 3 Highlights 2023 Delivering materials for a cleaner future via our three business streams: Rare Earths Project Process Bauxite Projects 4 Discovering and developing an ionic adsorption clay project in northern Tasmania Establishing a plant to produce hydrogen fluoride and aluminium fluoride from recycled industrial waste, to replace imports Mining and enhancing bauxite resources for the cement, aluminium and fertiliser industries ABx GROUP ANNUAL REPORT 2023 Rare Earths • Mineral resource estimate increased to 52Mt averaging 817 ppm TREO and 633 ppm TREOCeO2. The resource has the highest proportion of dysprosium and terbium (Dy+Tb is 4.4% of TREO) of any clay-hosted rare earths resource in Australia. • A 66-hole drilling program was conducted from October to December 2023 and was designed to test step-out locations from ABx’s previous drilling campaign, which intersected the highest assays to date. Initial drilling was conducted at the Wind Break deposit, the first drilling program dedicated to rare earths at this location, while the remainder of the drilling program conducted at the northern extensions of the Deep Leads – Rubble Mound resource. • Successfully commissioned and commenced operations at the bath pilot batch reactor. During the period, three test runs were completed under standard process conditions with hydrogen fluoride gas successfully produced throughout each of the test runs. • While lower-than-expected fluorine recovery rate was achieved in the third test run, Alcore undertook a fourth test run in late January utilising newly commissioned equipment to allow feed bath particle size to be controlled. Alcore remains confident results from this test run and subsequent test runs will achieve a higher recovery rate. Bauxite Projects • Agreement was executed with Adelaide Brighton Cement Limited (ABCL), a subsidiary of Adbri Limited (ASX:ABC), for the supply of cement-grade bauxite to ABCL’s Birkenhead cement manufacturing operation in South Australia. • Agreement forecasts supply of 90,000-120,000t of bauxite over a five-year term, with commencement of mining is now expected in Q3 2024. The bauxite sale price has been agreed for the first shipment and is satisfactorily profitable and commercial-in-confidence. The sale price is to be negotiated for subsequent shipments. ABCL has the option to extend the term for a further five years. ABx GROUP ANNUAL REPORT 2023 5 Letter from the Chairman In another significant step towards commercial assessment, we completed with our consultants the first comprehensive block model resource estimation of the Deep Leads-Rubble Mound rare earth resource. The estimate saw a significant increase in the size of the deposit to 52 million tonnes at 817 ppm of total rare earth oxides (TREO). It is testament to the Tasmanian team that they increased this resource by more than 10-fold since announcing a 3.9 million tonnes maiden resource in November 2022. Importantly, the block model also confirmed four high-grade rare-earth zones in accessible sites that warrant infill drilling. The resource is exceptionally enriched in permanent magnet rare earths, especially dysprosium and terbium, which are highly valuable, have the highest supply risk and are almost exclusively produced from ionic adsorption clay rare earth deposits. Dear fellow shareholders, It is with great pleasure that I provide a review of ABx Group’s activities throughout 2023, a year in which our company took significant strides forward in progressing work programs across our rare earth, Alcore and bauxite projects. Before I do, I would like to sincerely thank our existing shareholders for their ongoing support in the company and in our board and management. For new shareholders, I welcome you to the Company and look forward to what I hope to be a very active, eventful, prosperous, and exciting year ahead for ABx. It was a year of significant milestones at our rare earth project in northern Tasmania both in terms of exploration activity and in continuing to develop the ionic adsorption clay resource. 6 On the exploration front, we undertook several rare earth drilling campaigns that yielded exceptional results. This included our highest-grade intersection ever of 17,333ppm TREO, four times higher than the previous highest-grade rare-earth result. In addition, desorption tests conducted by ANSTO on rare earth samples from Deep Leads and Rubble Mound deposits reported up to 83% extraction of high value rare earth mineralisation, the highest extractions from any clay-hosted REE prospect in Australia. Our 83%-owned Alcore business is in the process of developing industry-leading technology that processes aluminium smelter waste, known as ’excess bath’, into high value products such as aluminium fluoride, an essential chemical for aluminium production. ABx GROUP ANNUAL REPORT 2023 During the year ended 31 December 2023, Alcore significantly progressed with developing its pilot plant at the Alcore Technology Centre in Berkeley Vale, NSW. We completed the initial preliminary engineering design for the continuous pilot plant, and fully installed and commissioned the bath pilot batch reactor. This reactor, which was ordered from a specialised international supplier, features stateof-the-art technology to enhance process mixing and features a process capacity ten times larger than our previous bath laboratory reactor. If the pilot batch reactor achieves its designed high yield of fluorine from the aluminium smelter waste, it will: 1. 2. Give further confidence that the continuous pilot plant and first commercial plant will perform as designed; and Enable further development work to be conducted on processing and market evaluation of the metal sulfate co-products. To date, we have successfully conducted five test runs under standard processing conditions which have provided Alcore with valuable insights into the design of the continuous pilot plant. We are currently awaiting assay results from the fourth and fifth test runs. Meanwhile, commercial discussions with potential investors have included the possibility of locating the continuous pilot plant at an alternative, superior site, instead of the Alcore Technology Centre. Ordering of pilot plant reactors has been deferred until those commercial discussions are resolved. In 2023, we continued to pursue the excellent potential at our bauxite projects in Tasmania and Queensland. The signing of a five-year agreement with Adelaide Brighton Cement Limited (ABCL), a subsidiary of Adbri Limited, for the supply of cement-grade bauxite to ABCL’s South Australian operations was a significant endorsement of the suitability of the bauxite from our DL130 Bauxite Project in Tasmania for the broader cement industry. ABx GROUP ANNUAL REPORT 2023 Importantly, regular mining operations to supply ABCL will increase ABx’s ability to secure additional customers, for which there are active discussions. Start of mining is anticipated for Q3 2024. At the Sunrise bauxite project in Queensland, we progressed an internal review of the Binjour mine plan with selection of the preferred mining schedule and infrastructure layout. Our application to modify the Bundaberg port site boundary is being progressed by the Department of Resources. Scheduling of the planned environmental studies at the mine and port sites are continuing. We envisage commencing exporting product from Sunrise in H2 2025. In summary, the Company is looking forward to delivering strong news flow throughout 2024 as we progress our rare earth, Alcore and bauxite operations, and I want to thank the Board and ABx staff for their dedication and hard work in progressing each of these businesses. I am very confident that 2024 will be another strong year for ABx and I look forward to sharing our progress with you all. Yours sincerely, Paul Lennon Non-Executive Chairman 7 Review of Operations This Review of Operations covers the year ended to 31 December 2023. Rare Earth Elements Exploration . . . . . . . . . . . . . . . 10 Alcore Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Bauxite Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 8 ABx GROUP ANNUAL REPORT 2023 ABx Group (ABX) is a uniquely positioned, hightech Australian company delivering materials for a cleaner future. The two current areas of focus are: • Creation of an ionic adsorption clay rare earth project in northern Tasmania; and • Establishment of a plant to produce hydrogen fluoride and aluminium fluoride from recycled industrial waste, to replace imports (ALCORE). There is also a legacy business: • Mining and enhancing bauxite resources for cement, aluminium and fertiliser production. ABx endorses best practices on agricultural land, strives to leave land and environment better than we find it. We only operate where welcomed. 2023 will be remembered as a noteworthy year for ABx due to the following: Rare Earth Elements Exploration ABx is the first company to discover rare earths in Tasmania, and has the highest reported extractions under relatively neutral conditions from any clayhosted rare earths project in Australia. During the period, ABx reported an increase in the mineral resource estimate to 52 million tonnes averaging 817 ppm TREO and 633 ppm TREOCeO2. The resource has the highest proportion of dysprosium and terbium (Dy+Tb is 4.4% of TREO) of any clay-hosted rare earths resource in Australia. Multiple drilling programs were conducted during the period. The most recent 66-hole drilling program conducted from October to December 2023 was designed to test step-out locations from ABx’s previous drilling campaign, which intersected the highest assays to date. Initial drilling was conducted at the Wind Break deposit, the first drilling program dedicated to rare earths at this location, while the remainder of the drilling program was conducted at the northern extensions of the Deep Leads – Rubble Mound resource. ABx GROUP ANNUAL REPORT 2023 ALCORE: Aluminium fluoride for aluminium smelters Alcore has developed a world-first process to recover hydrogen fluoride from aluminium smelter bath. It intends to construct commercial hydrogen fluoride and aluminium fluoride plants in Bell Bay, Tasmania. During the period, Alcore commissioned and commenced operations using the bath pilot batch reactor. Three test runs were completed under standard process conditions with hydrogen fluoride gas successfully produced throughout each of the runs. While lower-than-expected fluorine recovery rate was achieved in the third test run, Alcore undertook a fourth test run in late January utilising newly commissioned equipment to allow feed bath particle size to be controlled. Alcore remains confident results from this test run and subsequent test runs will achieve a higher recovery rate. Progressing bauxite operations The ABx strategy is to selectively produce metallurgical grade, cement grade and fertiliser grade bauxite, with a focus on profitability. An agreement was executed with Adelaide Brighton Cement Limited (ABCL), a subsidiary of Adbri Limited (ASX:ABC), for the supply of cement-grade bauxite to ABCL’s Birkenhead cement manufacturing operation in South Australia. The agreement forecasts supply of 90,000-120,000 tonnes of bauxite over a five-year term, with commencement of mining now expected in Q3 2024. The bauxite sale price has been agreed for the first shipment and is satisfactorily profitable and commercial-in-confidence. The sale price is to be negotiated for subsequent shipments. ABCL has the option to extend the term for a further five years. 9 Rare Earth Elements Exploration Rare earths have many applications in a wide variety of industries. Permanent magnets are the most valuable application, representing over 90% of the total value of rare earths demand. Permanent magnets are used in electric vehicles, wind turbines, smartphones and military applications. The four most important rare earths for permanent magnets are neodymium, praseodymium, dysprosium and terbium. The demand for these four rare earths is predicted to grow significantly in coming years, potentially leading to significant supply shortfalls. The supply risk is highest for dysprosium and terbium, the two heavy rare earths in permanent magnets. Globally, most rare earths are sourced from mineral deposits. These typically require large, costly processing plants and a significant lead time to reach production. A less common source of rare earths is ionic adsorption clay (IAC) deposits, which have historically been mined only in southern China. A major advantage of IAC deposits is that the rare earths can be extracted from the clay via a low-cost desorption process. Secondly, they often exist at shallow depth. These factors mean that the minimum viable project for an IAC project is typically significantly smaller than for a mineral project. Crucially, this means that much less capital, time and risk is typically required to deliver a cash-flow positive IAC project compared to a mineral project. 10 Furthermore, IAC deposits typically contain a higher proportion of heavy rare earths compared to hard rock deposits, and low concentrations of radioactive elements such as uranium and thorium. ABx is the first company to discover rare earths in Tasmania and has reported a JORC-compliant mineral resource of 52 million tonnes at its Deep Leads / Rubble Mound project1 . ABx engaged Australian Nuclear Science and Technology Organisation (ANSTO) to conduct desorption tests, which found the highest extractions under relatively neutral conditions reported from any clay-hosted project in Australia2,3 . This proves the mineralisation to be of the IAC type. Low-cost processing is crucial for clay-hosted rare earth deposits, and industry processing experts indicate that low-cost processing can only be achieved using desorption with low acid consumption. Additionally, the rare earths in the Deep Leads / Rubble Mound resource have the highest proportion of dysprosium and terbium (Dy+Tb is 4.4% of TREO) of any clay-hosted rare earths resource in Australia. Furthermore, the level of radioactive elements is very low (2 ppm U2O3 and 6 ppm ThO). These factors put ABx at the forefront for customers and countries seeking to diversify rare earths supply. ABx GROUP ANNUAL REPORT 2023 The ABx strategy is to produce a mixed rare earth carbonate (MREC) that can be sold to rare earth separation plants, which produces separated rare earth oxides. The ABx MREC will be high in heavy rare earths and low in radioactive elements, which is expected to be attractive to many prospective customers. Market discussions with several potential customers endorse this strategy. Towards the end of the year, ABx Group carried out a 66-hole drilling program to test step-out locations from previous drilling campaigns initially targeting the Wind Break deposit – the first drilling program dedicated to rare earths at this location – with the remainder of the program conducted at the northern extensions of the Deep Leads – Rubble Mound resource. During 2023, ABx undertook several REE drilling campaigns that yielded exceptional results. This included the Company’s highest-grade intersection ever of 17,333ppm TREO, four times higher than the previous highest-grade rare earth result. Post period end4, results received from the 30hole campaign conducted at Wind Break returned thick, clay-hosted high grade REE and confirmed ABx’s northern Tasmanian exploration target area exceeded 100 km2. The drilling campaign is continuing on the high-grade Rubble Mound and extensions of the Deep Leads zone with assay results anticipated shortly. ABx and its consultants completed the first comprehensive block model resource estimation of the Deep Leads-Rubble Mound rare earth resource. The resource estimate currently stands at 52 million tonnes averaging 817 ppm TREO and 633 ppm TREO-CeO2 at a cut-off grade of 350 ppm TREOCeO2. The rare earth grades for the resource estimate are shown in Table 1. The resource model was based on data from 407 drillholes across the resource area and covered 39% of the identified mineralised outline. Furthermore, because it models all intercepts to date, the resource estimate highlights four high grade zones that warranted follow-up. Figure 1: Map of block model showing the zones of high REE enrichment as the purple, red and orange blocks ABx GROUP ANNUAL REPORT 2023 The Company was also granted two significant exploration licences covering the southwards extensions of the Portrush discovery near Launceston.5 The two tenements, EL27/2022 and EL28/2022, total 483 km2 and were granted for an initial term of 5 years. They are located ~52 km east of ABx’s major Deep Leads / Rubble Mound project, and secure the southwards extension of the high grade Portrush deposit. These two large exploration licences significantly increase our rare earths exploration footprint in Tasmania to almost 600 km2. Figure 2: Location of ABx Exploration Projects in northern Tasmania 1. 45 Mt inferred and 7 Mt indicated 2. ASX announcement, 31 May 2022 3. ASX announcement, 2 February 2023 4. ASX announcement, 22 January 2024 5. ASX announcement, 26 September 2023 11 Alcore Technology Aluminium fluoride for aluminium smelters Hydrogen fluoride is an essential chemical for the production of fluorocarbons and aluminium fluoride. Aluminium fluoride is an essential chemical for aluminium metal production. Fluorine has been recently added to Australia’s critical minerals list. Hydrogen fluoride is mainly produced from fluorspar, which is obtained from the mineral fluorite. Fluorspar is relatively high cost and has been identified as a critical material by the USA, Europe, Japan and Canada. Australia does not mine any fluorite, or produce any fluorspar, hydrogen fluoride or aluminium fluoride, and so must import all its requirements. The Australian demand for hydrogen fluoride is small, and it is imported at high cost. Conversely, Australia is a significant producer of aluminium and so its demand for aluminium fluoride is high. Most modern aluminium smelters produce excess bath, for which the only meaningful market is new smelters, which require bath to commence operations. Aluminium industry forecasts suggest that the global bath market will increasingly be in surplus, because far fewer new smelters are being constructed. All of the major global aluminium producers are eager for alternative applications for excess bath, to avoid the unpalatable options of onsite storage or landfill. ALCORE has developed a world-first process to recover hydrogen fluoride from aluminium smelter bath. This is combined with aluminium hydroxide to produce aluminium fluoride. ALCORE is also investigating the use of droll (another aluminium smelter waste) and bauxite as alternatives to aluminium hydroxide as the source of aluminium. The use of dross or bauxite would further lower the production cost. ALCORE intends to construct commercial hydrogen fluoride and aluminium fluoride plants in Bell Bay, Tasmania. Australia is the largest producer of primary aluminium metal without its own domestic aluminium fluoride production, so Australian aluminium smelters rely entirely on imported aluminium fluoride. The aluminium source for the initial aluminium fluoride production is likely to be aluminium hydroxide, as this is lower risk and allows a faster path to production. Subsequent production may use aluminium from dross or bauxite to further improve the financial and environmental outcomes. This is typically more than 80% from China, but this proportion was only 40% in 2021 when China production was lower, illustrating the supply risks. The median aluminium fluoride price (FOB China) for the last two years is over US$1,400/t (Figure 3). The initial plant is proposed to transform 1,600 tonnes per year of aluminium smelter bath into hydrogen fluoride and other industrial chemicals. A proportion of the hydrogen fluoride will be further processed to aluminium fluoride. Figure 3: Aluminium fluoride monthly prices FOB China (source: China Customs Statistics) 12 ABx GROUP ANNUAL REPORT 2023 The relative amounts of hydrogen fluoride and aluminium fluoride produced can be optimised to suit market demand. In 2022, ALCORE received a $7.6 million grant from the Australian Government’s Modern Manufacturing Initiative (MMI) to support this plant. ALCORE is matching grant funding dollar-for-dollar for the project. ALCORE’S longer term plan is to expand the plant by 15 times, which will process all of Australia’s aluminium smelter bath and supply more than 80% of Australia’s aluminium fluoride requirements. During 2023, ALCORE significantly progressed the development of its pilot plant at the ALCORE Technology Centre in Berkeley Vale, NSW. The bath pilot batch reactor fully installed and commissioned (Figure 4). This reactor features state-of-the-art technology to enhance process mixing. Following engineering design by ALCORE, it was ordered from a specialised international supplier in late March. It features a process capacity ten times larger than the bath laboratory reactor. If the pilot batch reactor achieves its designed high yield of fluorine from the aluminium smelter waste, it will: • Give further confidence that the continuous pilot plant and first commercial plant will perform as designed; and • Enable further development work to be conducted on processing and market evaluation of the metal sulfate co-products. During the year, three test runs were completed under standard processing conditions with a further two completed post end of period. All test runs have provided ALCORE with valuable insights into the design of the continuous pilot plant. ALCORE is currently awaiting assay results from the fourth and fifth test runs. While the third test run results returned a lowerthan-expected fluorine recovery rate due to large bath feed particle size, ALCORE had commissioned equipment to allow feed bath particle size to be controlled. This equipment was utilised during the fourth test run undertaken in late January. ALCORE remains confident results from this test run and subsequent test runs will achieve a higher recovery rate. Initial preliminary engineering design for the continuous pilot plant was completed. Meanwhile, commercial discussions with potential investors have included the possibility of locating the continuous pilot plant at an alternative, superior site, instead of the ALCORE Technology Centre. Ordering of pilot plant reactors has been deferred until those commercial discussions are resolved. ALCORE received $5.7 million in two instalments6 from the $7.6 million grant from the Australian Government’s Modern Manufacturing Initiative (MMI) that was awarded in 20227. This is to support ALCORE’s proposed $16.4 million aluminium smelter bath recycling plant in Bell Bay, Tasmania. ALCORE is matching grant funding dollar-for-dollar for the project. Figure 4: Third run of bath pilot batch reactor under standard process conditions 6. ASX Announcement, 28 June 2023 7. ASX Announcement, 29 April 2022 ABx GROUP ANNUAL REPORT 2023 13 Bauxite Operations The ABx strategy is to selectively produce metallurgical grade, cement grade and fertiliser grade bauxite, with a focus on profitability. In 2023, the Company continued to pursue the excellent potential at its bauxite projects in Tasmania and Queensland. The largest project is Binjour, with a JORC compliant resource of 37 million tonnes8, supporting 20-25 years production. In February 2022, ABx entered a JV with Alumin for the development of the Sunrise Bauxite Project, comprising a bauxite mine at Binjour plateau and port operations at Bundaberg in Queensland. Alumin is an Australian special purpose vehicle company associated with our strategic marketing partner, Rawmin India, having extensive experience in funding long term sustainable investments in projects involving mining and bulk-shipping of metallurgical grade bauxite to end users around the world. It is anticipated that the mine at Binjour will export 500,000 tonnes per year of metallurgical grade bauxite in its first year of production, then scale up to full operational capacity of 1.5 million tonnes per year. ABx has reforecast its timeline to begin exporting of product in H2 2025. In Tasmania, ABx has three bauxite deposits and has previously mined at Bald Hill near Campbell Town. ABx plans to recommence bauxite mining in Tasmania by Q2 2024, at the DL130 Bauxite Project. The primary products are likely to be cement grade and fertiliser grade bauxite. DL130 Project, Tasmania An agreement was executed with Adelaide Brighton Cement Limited (ABCL), a subsidiary of Adbri Limited (ASX:ABC), for the supply of cementgrade bauxite to ABCL’s Birkenhead cement manufacturing operation in South Australia.9 The agreement forecasts supply of 90,000-120,000 tonnes of bauxite over a five-year term. The bauxite sale price has been agreed for the first shipment and is satisfactorily profitable and commercial-inconfidence. The sale price is to be negotiated for subsequent shipments. ABCL has the option to extend the term for a further five years. It is understood that ABCL has used a trial shipment of ABx bauxite material in its cement manufacturing operation with no significant issues. During the period, the EPA approved the Environmental Effects Report (EER) for the mine lease application. While some aspects of the application were taking longer than planned, these are not major issues and they should all be straightforward to resolve with commencement of mining anticipated for Q3 2024. In