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Montserrat

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.

Ionic Adsorption Clay (IAC) Rare Earths Deposits


An alternative source of rare earths is clay-hosted deposits. These typically contain a mixture of ionic adsorption clay (IAC, the ionic component) and a non-ionic component. The relative proportions of each in different deposits varies enormously. The rare earths in the ionic component can be extracted using a low-cost desorption process, which produces a solution containing rare earths that is subsequently precipitated into a mixed rare earth carbonate (MREC). Industry processing experts indicate that it is very difficult to economically extract rare earths from the non-ionic component. Thus it is critical to have a high ionic proportion.

The other major advantages of ionic adsorption clay deposits are:

Higher proportion of heavy rare earths compared to mineral deposits

Low concentrations of radioactive elements such as uranium and thorium

The minimum viable project for an ionic adsorption clay project is typically significantly smaller than for a mineral project. Crucially, this means that considerably less capital, time and risk is typically required to deliver a cash-flow positive ionic adsorption clay project compared to a mineral project

The basket price for a concentrate from an ionic adsorption clay deposit is typically higher than one from a mineral deposit.

Ionic adsorption clay deposits have historically been mined only in southern China.

ABx is the first company to discover rare earths in Tasmania and has reported a JORC compliant mineral resource of 89 million tonnes at its Deep Leads - Rubble Mound and Wind Break deposits. The resource contains 36 ppm DyTb, the highest of any clay-hosted rare earths resource in Australia and one of the highest in the world. This contributes to a higher basket price. Furthermore, the level of radioactive elements is very low (2 ppm U2O3 and 6 ppm ThO2).

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 resource in Australia,  which means it has the highest ionic proportion of any clay-hosted resource in Australia.

The ABx rare earth deposits are located in accessible forest plantations near highways, ports, railways, airports, grid hydropower and major towns.

The ABx strategy is to produce a mixed rare earth carbonate that can be sold to rare earth separation plants, for conversion into separated rare earth oxides. Numerous discussions with potential customers and investors have confirmed the particular strengths of the ABx rare earth deposits:

During 2024, ABx is continuing its exploration program and metallurgical studies.