Campbell Town bauxite miner Australian Bauxite Limited announced on Wednesday 89 per cent-owned subsidiary Alcore Limited had executed a memorandum of understanding agreement with Japanese global trading company Sojitz Corporation.

"Sojitz has been assisting Alcore for three years and is one of several aluminium industry corporations that are vitally interested in the Alcore processes and business plans," Alcore chief executive Mark Cooksey said.

"We welcome this third party endorsement and we expect there will be further endorsements in the coming months as we start to standardise our product specifications and processing strategies.

"Sojitz can provide an immediate international capability and could assist in the supply chain for Alcore production of (aluminium fluoride), which is a strategically important mineral product for aluminium smelting and battery production."

Australian Bauxite said Alcore planned to produce aluminium fluoride for Australian use and for export.

It said Australasia currently imported more than 30,000 tonnes of aluminium fluoride per year from China, worth more than $60 million.

Alcore aimed to produce 10,000 tonnes per year at Bell Bay before ramping up to 50,000 tonnes.

Production would be expected to involve about 50 jobs at the start, potentially increasing to about 300.

"Alcore's business plan is to increase production steadily by commissioning five ... 10,000 tonne production modules at an industrial site in Bell Bay, Northern Tasmania: an industrial precinct that currently has an aluminium smelter, a manganese smelter and an aluminium powder plant, all powered by hydro power," Australian Bauxite said on Thursday.

"Alcore's recycling strategy would improve the environmental credentials of Bell Bay Aluminium."

Dr Cooksey said Alcore had made significant progress in recent months despite constraints imposed by coronavirus.

"We are now fast tracking a pilot plant scale confirmation of the engineering parameters for the first modules," he said.

"It is planned to present a feasibility study to investors as soon as possible."