“In addition to developing its second bauxite mine project in Tasmania, ABx (Australian Bauxite Limited) has substantially enhanced the value of its bauxite projects by developing two high-technology businesses that will deliver high-priced aluminium fluoride for aluminium smelters and lithium-ion batteries and the discovery of the ideal type of rare earth elements within ABx’s Tasmanian bauxite projects,” Mr Lennon said in an address prepared for the company’s virtual annual meeting on Wednesday.

He said the company had finished rehabilitating its first mine, at Bald Hill near Campbell Town, “to better than pre-mining land value”.

“ABx is moving to the nearby Fingal Rail project, which is larger and better quality bauxite.

“ABx is keen to deliver Fingal Rail bauxite into two contracts by late 2021, early 2022.”

Mr Lennon said Fingal Rail could grow to deliver more revenue than Bald Hill’s annual earnings before interest, tax, depreciation and amortisation of between $500,000 and $2 million in past years.

He said 87 per cent-owned subsidiary Alcore Limited achieved a world first this year by producing aluminium fluoride from smelter waste products, which improved profitability, provided security of supply and helped smelters improve environmental performance.

“Australia is the only major aluminium producer without an aluminium fluoride plant and has relied on imports, mainly from China, which have recently stopped,” Mr Lennon said.

“Operating margins for a 60,000 tonnes aluminium fluoride plant are estimated to be in the order of $50 million per annum at current prices of aluminium fluoride and projected operating costs, supplying Australasian smelters and exporting to several known smelters.”

Alcore aims to build its production plant at Bell Bay, with an investment decision expected by the end of 2021.