ABx Group Deep Leads Rare Earth Carbonate Confirms Radioactivity Exemption

ABx Group Deep Leads Rare Earth Carbonate Radioactivity Exemption Confirmed

ABx Group Limited (ASX: ABX) has reported that the second mixed rare earth carbonate (MREC) produced from its Deep Leads rare earths deposit in northern Tasmania is exempt from radiological control, with total radioactivity lower than the maiden MREC that had already met the same threshold. According to the 17 June 2026 ASX announcement, the result was independently confirmed by the Australian Nuclear Science and Technology Organisation (ANSTO).

The confirmation adds to what the company described as highly positive customer feedback from evaluation programs in Australia and North America. For investors following non-Chinese rare earth supply chains, the update matters for two reasons. First, low-radioactivity MREC can reduce handling and shipping complexity for downstream customers. Second, ABx reported that the second MREC also carried higher proportions of dysprosium (Dy) and terbium (Tb) and lower levels of aluminium and iron, which may improve its attractiveness to refiners seeking higher-value feedstock.

Why Radiological Exemption Matters in Rare Earth Processing

In the announcement, ABx placed strong emphasis on ANSTO's confirmation that the second MREC is classified as exempt material under international radiological thresholds. This is a practical issue as much as a technical one.

Rare earth deposits often contain uranium and thorium, which are naturally radioactive elements. If those elements become concentrated during processing, the resulting product can be subject to radiological control. That can create added compliance requirements for transport, storage, handling and refining.

How Was the Second MREC Assessed?

According to the appendix to the ASX announcement, ANSTO used gamma spectrometry to assess the second MREC. Every radionuclide in the uranium and thorium decay chains was below 0.5 Bq/g, with U-238 at 0.41 Bq/g as the highest measured result. Furthermore, ABx stated that every gamma-measured radionuclide was at or below 0.054 Bq/g, which was 50% to 90% lower than in the maiden MREC.

The key benchmark is the International Atomic Energy Agency (IAEA) bulk material exemption limit of 1.0 Bq/g. Material below that level is not subject to radiological control. In practical terms, that may widen the range of potential customers and reduce the likelihood that ABx will need to add a processing step to remove radioactive elements.

Bq/g, or becquerels per gram, measures radioactivity. One becquerel means one radioactive decay event per second. Lower numbers indicate lower radioactivity. The IAEA exemption threshold is 1.0 Bq/g, and ABx reported that its second MREC was below that level across all measurements.

ABx said some customers place a high value on very low radioactivity because it gives them more flexibility to blend MREC from different sources. That point is relevant in an industry where refining customers are often trying to manage both chemistry and regulatory constraints in parallel.

Second MREC Shows Improved Chemistry as Well as Lower Radioactivity

The second MREC appears to have improved on more than one front. According to ABx, the sample was produced using column leaching and contained a higher proportion of the most valuable heavy rare earths, including Dy and Tb, while also showing significantly lower amounts of aluminium and iron.

That combination is important because product quality in rare earth intermediate materials is not judged only by headline grades. Refiners also focus on impurity levels, metallurgical compatibility and whether the feed contains the elements that command the strongest market prices.

The pricing backdrop gives this chemistry profile added relevance. ABx cited Benchmark Mineral Intelligence data from 11 June 2026, which reported DDP China prices of almost US$200/kg for dysprosium oxide and over US$900/kg for terbium oxide. The same source indicated that CIF Europe prices for Dy and Tb were more than five times higher than Chinese domestic prices.

This does not mean ABx will receive those prices directly, as MREC is an intermediate product rather than separated oxide. However, it does show why downstream refiners are focused on feedstocks with relatively stronger heavy rare earth exposure.

Customer Feedback Is Adding Early Commercial Validation

ABx reported that 10-gram samples of the maiden MREC have been distributed to six potential customers in Australia and North America. Most of those samples have been evaluated, and the company stated that all feedback received so far has been highly positive.

What Have Customers Said So Far?

Two customer responses have been specifically identified in ASX disclosures. The first came from Rare Earth Technologies Inc. (RETi), which earlier in 2026 advised that the Deep Leads MREC is a high-purity product and suitable for processing through the RETi refining flowsheet. For a developing rare earth project, that kind of process compatibility can be an important hurdle.

The second came from Ucore Rare Metals Inc., listed on the TSXV and OTCQX, which plans to develop heavy and light rare earth processing facilities in the United States and Canada. In the current announcement, ABx said it had received highly favourable feedback from Ucore on the maiden MREC.

ABx and Ucore already have a Memorandum of Understanding (MoU) to develop a collaborative pathway for supplying mixed rare earth carbonates from Australia to Ucore's processing facilities. An MoU is not a binding offtake agreement, but it can serve as an early framework for technical and commercial cooperation.

ABx also stated that it currently holds approximately 90 grams of the second MREC and intends to distribute sub-samples to a broader group of prospective customers as part of an expanded qualification programme.

"The maiden MREC already met exemption criteria for radiological control. To achieve an even lower level of radioactivity in the second MREC is an outstanding outcome and further enhances the attractiveness of the product for downstream customers," said Dr Mark Cooksey, Managing Director and CEO of ABx.

Understanding MREC and Why Heavy Rare Earths Matter

For investors new to the sector, mixed rare earth carbonate is an intermediate product. It is produced after rare earths are extracted from ore, but before individual rare earth elements are separated into saleable refined products such as oxides. Many junior and emerging rare earth companies do not plan to build full separation plants in the early stages of development.

A few basic points help explain why ABx's update may be relevant:

• MREC is a feedstock, not a finished rare earth oxide product
• Its value depends on rare earth content, impurity levels and process compatibility
• Heavy rare earths such as Dy and Tb are generally more valuable than light rare earths
• Low radioactivity can make logistics and refining simpler

Why Are Dy and Tb So Significant?

Dy and Tb are particularly important because they are used in high-performance permanent magnets. These magnets are found in applications such as electric vehicle motors, wind turbines and some defence systems. Heavy rare earth supply is more constrained than light rare earth supply, and non-Chinese feedstocks can attract stronger interest from Western processors looking to diversify supply options.

In that context, ABx's statement that the second MREC has higher proportions of Dy and Tb than the maiden MREC adds commercial interest to the radiological result.

Processing Approach May Offer a Cost and Product Quality Advantage

One of the more technically relevant parts of the announcement relates to how the MREC was produced. ABx said it achieved high extractions at ambient temperatures and pressures with minimal acid in a short time. In simpler terms, this means the process conditions were relatively mild, which can matter because high-temperature or high-pressure processing routes are often more energy intensive.

ABx argued that this approach may support:

• Lower processing cost characteristics
• Lower impurity levels in the final MREC
• Lower radioactive element content
• Reduced likelihood of needing a separate radioactivity removal step

The company also noted that most clay-hosted rare earth deposits globally achieve minimal extraction under these same conditions, which suggests Deep Leads may behave differently from some peer projects. That is a company assessment rather than a definitive commercial conclusion, but it is an important part of the project narrative.

"Many rare earth projects contain significant levels of uranium and thorium, which can introduce complexity, cost and risk into mining, processing and downstream refining, not to mention transport. Deep Leads is different," said Dr Cooksey.

What ABx Outlined as the Next Steps

The ASX update set out a defined near-term work programme for the Deep Leads project. According to the announcement, ABx plans to continue commercialisation activities through customer engagement, technical studies and exploration. The next steps include:

1. Distribution of second MREC samples to additional prospective customers
2. Continued engagement with potential offtake and strategic partners
3. Economic studies to optimise project design, supported by metallurgical work conducted internally and with ANSTO and engineering partners
4. Continued exploration across the expanding tenement holdings in northern Tasmania to increase resource size

This sequence is relevant for investors because it shows the company is still in the qualification and optimisation phase rather than full-scale development. More customer testwork and technical evaluation will likely be needed before any binding commercial pathway is established.

Why Investors Are Watching Deep Leads Within the Broader ABx Portfolio

ABx is not solely a rare earth company. The group also highlighted its ALCORE clean fluorine chemical project and its near-term bauxite production activities, including agreements with Good Importing International and receipt of an initial $2.7 million payment. However, the Deep Leads rare earth project appears to be a central part of the longer-dated investment case.

The latest announcement adds several data points that could be material to that thesis:

• Two consecutive MREC products have now met radiological exemption criteria
• The second MREC showed lower radioactivity than the first
• The second MREC reportedly contained more Dy and Tb and fewer key impurities
• Customer feedback from evaluations to date has been positive
• An existing MoU with Ucore provides an early framework for potential supply collaboration

Taken together, the update points to a project that is moving from laboratory and pilot-scale validation towards broader customer qualification. For the market, the central question is whether those technical advantages can translate into formal commercial relationships and an economically robust development pathway.

ABx's latest project update does not answer that question yet, but it does add incremental evidence on product quality, processing characteristics and customer interest. In a rare earth market where product specification can be as important as contained metal, that is a development investors are likely to keep monitoring closely.

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