HOA Signed for Bauxite Aluminium Fluoride Project
Sydney, Nov 13, 2017 AEST (ABN Newswire) - Bauxite producer, Australian Bauxite Limited (
ASX:ABX) (ABx) is pleased to announce that it has finalised a Heads of Agreement (HoA) with technology provider, Refined Ore Industries Limited (ROIL) for the ALCORE project which is the development of bauxite beneficiation and refining technology to produce from bauxite Aluminium Fluoride which is used in aluminium production and in lithium ion batteries.
ABx has assisted ROIL's commercial and technological development over the past 3 years and has subsequently been offered the licence from ROIL for the refining of bauxite, on the following terms:
1. Exclusive global rights for the refining of bauxite, to produce Aluminium Fluoride (AlF3), and coproduct oxides of aluminium, silicon, iron, titanium from the bauxite;
2. Production of Corethane Gas from the refining of coal to provide electrical power, heating and cooling for the bauxite refining plant so that is has energy security; and,
3. Exclusive global marketing rights for all Aluminium Fluoride (AlF3) and related coproducts produced by other ROIL technology projects unrelated to ABx in Australasia and Asia.
ABx is to issue 1.4 million ABx shares to ROIL on completion of the Full Agreement.
Patent
ROIL is the owner of the technology intellectual property company, Berkeley Process Technologies Pty. Ltd. which owns the patent application No. 2017902627 dated 5 June 2017 for the "Ores to Elements" process (the CORE process) that involves the refining of various ore types using a combination of fluorine acids and related thermal energy process steps. ABx assisted ROIL to finalise and lodge this patent application so that the ALCORE project could proceed.
ALCORE project
The ALCORE project will apply the CORE Process to refine bauxite ore containing aluminium, iron, silica and titanium for the low energy, low emissions production of Aluminium Fluoride (AlF3) and coproducts including very pure forms of silica SiO2, iron oxide Fe2O3 and titanium oxide pigment TiO2.
2 Stages: ROIL personnel will undertake high-technology engineering projects focused on the CORE Process. ABx will work with ROIL to develop ALCORE in the following 2-stage process:
Stage 1: Engineering Evaluation Plant (EV Plant) A$12.5m to A$16m (being costed)
Stage 2: 50,000 tonnes per year production plant "ALF 1" for approximately A$50m
Timetable Design & costing of EV Plant underway now and due by end February 2018
Shareholder consultation, approvals & funding strategy - from now until end Q1 2018
Funding - during Q1 & Q2 2018
Marketing samples for offtake contracts - in September &-November 2018
Bankable feasibility study of ALF 1 production plant - by end Q1 2019
Commissioning ALF 1 Production Plant - by end 2019
Summary: Bauxite refining converts Tasmanian bauxite valued at approximately US$50 per tonne into a suite of products worth in excess of US$800 per tonne of bauxite. This represents a more than 10-times increase in value per tonne.
Advantage: ABx bauxite is a clean ore, ideally suited to this type of refining because it is free of radioactive elements and base metals. This gives ALCORE two key advantages:
(1) The ALF3 product and all coproducts can be produced at very high purity; and,
(2) No residues means no need for costly waste disposal.
Why Bell Bay in Northern Tasmania or Townsville in Northern Queensland?
1. Large resources of clean-chemistry bauxite;
2. Available key chemical reagents, all of which are by-products from fertiliser plants and nearby zinc refineries;
3. Skilled workforces experienced in high-technology refineries and/or smelter operations;
4. Nearby coal supply for production of Corethane Gas for reliable energy security; and
5. Nearby export ports with ample available capacity for efficient shipping.
Figure 3 (see link below) shows these advantages, using Bell Bay in Tasmania as a more specific example.
Alcore Generalised economics
1. AlF3 prices have risen strongly from US$800 to above US$1,600 per tonne in 5 years (extra demand from Li ion batteries)
2. Aluminium smelters use 30kgs of AlF3 per tonne of aluminium (ie. 3%)
3. Global demand exceeds 1.5 million tonnes of AlF3 per year
4. ALCORE to target Australasian aluminium smelters as main customers
5. Lithium Ion Battery market will be a significant upside for ALCORE
6. ALCORE production is ~30% cheaper in operating costs than traditional AlF3 production - and has a lower capital cost due to simpler process
7. Payback of major production plant capital cost less than 3 years
8. Upside is additional production plants to supply SE Asia, India & Middle East
Alcore Environmental Benefits
No smoke-stack, no emissions, no waste products, value adding
1. Alcore Production Process uses waste acids from zinc refineries and fertiliser plants for reagent make-up.
2. Reagents are all recycled except for fluoro-silicic acid "FSA" make-up to supply additional fluorine to make AlF3
3. No emissions, particulates or waste generated
4. AlF3 improves aluminium smelting efficiency - saves electricity
5. Lithium Ion Battery recharge rates improved by AlF3
6. Can be self-sufficient for heating & electricity (co-product Corethane gas)
To view the full release with figures, please visit:
http://abnnewswire.net/lnk/7M6Z2E92
About Australian Bauxite Ltd
Australian Bauxite Limited (ABx) (ASX:ABX) has its first bauxite mine in Tasmania & controls the Eastern Australian Bauxite Province. ABx's 11 bauxite tenements in Queensland, New South Wales & Tasmania totalling 662 km2 are all 100% owned, unencumbered & free of third-party royalties. ABx's bauxite is gibbsite trihydrate (THA) bauxite that can be processed into alumina at low temperature.
ABx has committed a large proportion of its expenditure into Research and Development to find ways to capitalise on the main strengths of its bauxite type which is very clean, free of all deleterious elements and partitioned into layers, nodules, particles and grains of different qualities that can be separated into different product streams using physical, chemical and geophysical methods.
ABx has declared large Mineral Resources in northern NSW, southern NSW, Binjour in central QLD & in northern Tasmania.
ABx's first mine commenced at Bald Hill near Campbell Town, Tasmania in December 2014 - the first new Australian bauxite mine for more than 35 years.
ABx aspires to identify large bauxite resources in the Eastern Australian Bauxite Province and has created significant bauxite development projects in 3 states, Queensland, New South Wales and Tasmania. Its bauxite deposits are favourably located for direct shipping of bauxite to both local and export customers.
ABx endorses best practices on agricultural land, strives to leave land and environment better than we find it. We only operate where welcomed.
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