The company has been trying to turn smelter waste, known as dross, into a profitable resource for some time, and finally accomplished a technological breakthrough.

Alcore's process takes dross, which occurs on the top of molten aluminium in casting furnaces, and recycles it to produce aluminium fluoride (AlF3).

AlF3 is a vital additive used in aluminium smelting as part of the electrolysis process. It lowers the melting point of alumina to below 1000C.

Most recently Alcore managed to get its recovery down to a single-stage, from a two-stage process.

In a statement to shareholders, Australian Bauxite chief Mark Cooksey declared its patented ALF3 recovery process a success.

"Alcore has now demonstrated that its proprietary process increases the amount of aluminium recoverable from dross and development work is already underway to increase the overall yield of aluminium fluoride from dross using Alcore's new technology," Cooksey said.

Australian Bauxite hopes its subsidiary will become the first Australian supplier of AlF3.

Almost all AlF3 is sourced from China, leaving Australian smelters heavily reliant on trade routes and subject to potential geopolitical tensions such as tariffs.

Since January, China has not shipped any AlF3 to Australia. 

In 2020, Australia imported about 21,000 tonnes of AlF3 at a cost of US$1180 per tonne. 

Australian smelters have "significant stockpiles" of dross, according to Cooksey, all of which could be converted into AlF3.

"The use of dross is attractive because it is substantially lower cost and recycles waste that is produced in the smelting process - ideal for all concerned," he said.

Alcore is in discussions with state and federal governments, agencies and major smelters in Australia to look at implementing its technology.

According to Alcore, its AlF3 could be worth about $800/tonne. 

The process of recycling dross comes as the heavy aluminium industry looks to become more sustainable. 

Recently, industry heavy weights Roy Hill, South 32, Fortescue Metals Group, Alcoa, Rio Tinto, Worley, and Mitsubishi have formed a venture called the Heavy Industry Low-carbon Transition Cooperative Research Centre.

The HILT CRC will look to make the bauxite and aluminium industries more environmentally friendly and foster supply chain collaborations.