Tin Pot Dreams, Taxpayer Nightmares

Sunday 20th April 2025

How ABx Mines for Money (Not Bauxite)

In the lush heart of Tasmania’s Meander Valley, where paddocks meet pristine waterways and communities still believe in fresh air and common sense, a spectacular economic fantasy is unfolding—brought to you by ABx Group Limited, a company so financially precarious it makes a three-legged table look stable. And yet, in a twist only bureaucracy could love, this tin pot operation is being handed taxpayer dollars to bring dust, disruption, and delusion into Reedy Marsh.

Let’s start with the basics: ABx is broke. Not just tight-budget broke—more like “burning through what little cash we have while begging for more” broke. As of April 2025, they’re sitting on a meagre AU$561,000 in cash. That’s barely enough to fund a decent marketing campaign, let alone build and operate a bauxite mine. Compare that to their dwindling coffers in 2022—over $2 million—and you start to get the picture. They’re shedding money faster than a shaggy dog in summer.

So what’s the plan? Easy: Borrow more. Issue some convertible notes. Dazzle investors with jargon. Oh, and beg the government for millions in grants. In December 2024, ABx announced a $1.8 million convertible note issue with more strings than a puppet show and interest options that scream “please don’t ask for cash we don’t have.” That temporary Band-Aid was supposed to keep them breathing for another six months. Good luck after that.

Meanwhile, revenue from their actual operations—i.e., selling bauxite—is almost laughably low. In 2024, ABx earned just $58,000 from mineral sales. That’s right. Less than a junior accountant’s annual salary. But don’t worry—they more than made up for it with other income: millions in government handouts and R&D tax credits. That’s your money, by the way. Public funds propping up private failure.

And speaking of taxpayer generosity, let’s talk about their ALCORE pilot plant—a science experiment dressed up as industry. With a $7.5 million grant from the Federal Government's Modern Manufacturing Initiative and a nice fat $1 million zero-interest loan from the Tasmanian Government (repayable only if the project ever becomes viable), ABx has managed to divert attention and funding away from their environmentally disastrous Reedy Marsh proposal to this shiny side-hustle.

But here’s the kicker: None of this funding is actually earmarked for Reedy Marsh. The convertible notes? Going to ALCORE and a rare earth exploration fantasy in Deep Leads. The federal and state grants? Also not for the mine. So where, exactly, is the money to fund the actual bauxite mining operation that’s about to rip up Reedy Marsh and risk contaminating water, air, and the health of nearby residents?

Spoiler alert: There isn’t any. Not yet. ABx is “actively pursuing” funding for the Reedy Marsh mine—just like I’m actively pursuing my dreams of becoming a rockstar astronaut chef.

Yet, despite this financial house of cards, ABx has managed to lock in a supply agreement with Adelaide Brighton Cement for 90,000 to 120,000 tonnes of bauxite over five years. The catch? The mine isn’t ready. The environmental assessments are still under review. The locals are rightly furious. And the only thing that seems to be progressing is the amount of dust already being metaphorically blown into everyone’s faces.

Let’s recap: ABx is a speculative explorer, running multiple underfunded projects, surviving off public subsidies, making pocket change in revenue, and still expects us to believe they’ll run a clean, responsible, and profitable bauxite mine in a high-value agricultural area.

In reality, they’re mining government grants, not minerals—and if left unchecked, they’ll leave behind a crater of public trust, environmental degradation, and broken promises.

Welcome to Tasmania’s new extractive industry: extracting taxpayer dollars and social wellbeing, one dodgy proposal at a time.

Because if ABx wants to gamble with high-risk ventures, they can do it in a casino—not our backyard.

Reedy Marsh Resident's Voices

For those of us who have chosen to live in the peaceful, healthy environment of Reedy Marsh, the proposed bauxite mine threatens everything we value. Our family has invested in 6.5 hectares of land on the Meander River, dedicating 75% of it to wildlife conservation. We chose this area for its tranquillity, natural beauty, and supportive community. If Meander Valley Council approves the proposed bauxite mine, all of this will be at risk—our investment, our health, and our way of living, our life dreams.

Our Water

Those of us in Reedy Marsh rely entirely on rainwater for drinking and growing our vegetables, the risks are alarming. If this mine goes ahead, our water tanks will be filled with rainwater contaminated by bauxite dust. Our vegetables will be polluted, making them dangerous to eat—for both us and the wildlife that shares our gardens. The health implications are shocking and unacceptable. Bauxite mining doesn’t just harm wildlife—it endangers human health as well. Dust from bauxite mines is known to contain radioactive elements like radium and thorium, which are harmful to both the environment and people. Long-term exposure to these elements can cause cancer and other serious health issues. If high-aluminum concentration of heavy metals in sediments are deposited in the water, it will further dissolve and deposit into fish and benthic creatures.

Our Wildlife

The endangered Wedge-tailed Eagles, with fewer than 1,000 individuals left in the wild, are among the species that stand to lose the most. These magnificent birds are extremely sensitive to disturbances from machinery, habitat destruction, and pollution. The environmental consultants themselves acknowledged in their report that a more thorough survey of the area is needed to understand the full impact on these eagles. Yet, despite the lack of proper study, the project continues to move forward. Other endangered species, such as the Tasmanian Devil and the Spotted Quoll, roam freely across the countryside, and their habitat is also at risk. While we have protected a large portion of our property for these animals, their survival depends on the surrounding environment remaining intact. We cannot allow this bauxite mine to destroy the homes of these creatures. The wildlife in Reedy Marsh is part of what makes this place special—not only to us but to future generations. The irreversible damage to their habitat from machinery, land clearing, and toxic dust would be a tragedy for Tasmania’s biodiversity.

Our River

The Meander River, which borders our property, is another victim of this proposed mine. Toxic chemicals from bauxite mining will leach into the river, damaging the ecosystem and potentially wiping out fish populations. The harmful effects of bauxite dust on marine life are well-documented in places like Malaysia, where entire ecosystems have been devastated. If this mine goes ahead, we risk creating a "dead zone" in our own backyard, where fish, birds, and other wildlife can no longer survive.

Our Call for Action

This mine is not just a development—it’s a direct threat to everything we cherish in Reedy Marsh. Our peaceful lifestyle, our wildlife, our health, and our community are all at stake. We moved here to escape exactly these kinds of industrial risks, and it is inconceivable that Meander Valley Council would approve such a project given the dangers it poses. We strongly urge the Council to reject this proposal and, at the very least, to commission an independent and thorough wildlife survey before any decisions are made. Additionally, if the mine is approved, we recommend extending Deloraine’s town water supply to Reedy Marsh to mitigate the potential health risks posed by contaminated rainwater. This is our home. It’s worth protecting

MINE WATCH - MEANDER VALLEY

Tin Pot Dreams, Taxpayer Nightmares

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