What's Happening?
ABx Group is advancing its Deep Leads project in Tasmania by focusing on economic studies and securing customer agreements. The company has reported significant resource growth, particularly in dysprosium and terbium, which are critical for defense and technology applications. ABx is balancing government interest in securing rare earth supplies with a flexible commercial strategy. The company plans to produce a mixed rare earth carbonate (MREC) and sell it to separation plants to minimize capital expenditure and risk. Recent tests have shown over 80% extraction of high-value heavy rare earths, suggesting heap leach could be more effective than tank leach.
Why It's Important?
The development of the Deep Leads project is crucial for the rare earths market, which is vital
for defense and technology sectors. ABx's ability to secure high extraction rates of rare earths like dysprosium and terbium positions it as a key player in the supply chain. This is particularly significant as global supply chains face challenges and governments seek to secure critical mineral supplies. The project's success could influence market dynamics and policy decisions, impacting stakeholders in the rare earths industry and related sectors.
What's Next?
ABx plans to continue exploration and testing to optimize its project design. The company is also engaging with potential customers to secure binding agreements, which could lead to increased investment. The strategic decision on whether to produce an intermediate product or move further downstream will be pivotal. The outcome of these decisions will affect ABx's market position and its ability to meet demand from various sectors, including defense and technology.
