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Overview

Ocean Blue Express aims to become the first domestic producer of aluminium fluoride which will diversify and increase the security of supply for USA smelters. It will also enable the country to export to other smelters worldwide.

Currently, USA aluminium smelters rely entirely on imported AlF3. In the last 12 months, smelters secured more than 26,000 tones of AlF3 at an average US$ 1,266 per tons from China alone.

Ocean Blue Express AlF3 is the world’s first production of the mineral from recycled aluminium smelter waste and ABX’s gibbsite-rich clean bauxite. The company routinely produces AlF3 of commercial composition and bulk density in the laboratory.

According to Roskill, a respected industry analysis company, 75 per cent of existing commercial AlF3 production costs are raw materials, mainly fluorspar and aluminium hydroxide. Ocean Blue Express intend to use lower cost raw materials, resulting in reduced operating cost. It uses fluorine from aluminium smelter waste instead of purchased fluorspar and aluminium from bauxite or aluminium smelter waste instead of purchased aluminium hydroxide.

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The operating cost range for Ocean Blue Express’s early years of AlF3 production is estimated to be US$800-950 per ton. This will place Ocean Blue Express in the lowest cost quartile of global production.

The median long-term AlF3 price and the current market price is around US$ 1,175 per ton. Hence, this will provide an attractive operating margin for Ocean Blue Express.

Case Studies