Name of the Project
Broken Hill cobalt project.

Location
New South Wales, Australia.

Project Owner/s
Mining and mineral processing company Cobalt Blue Holdings.

Project Description
The Broken Hill project aims to develop the Pyrite Hill, Big Hill and Railway cobaltiferous pyrite deposits.

The 2020 updated study delivered significant enhancements, compared with the 2018 prefeasibility study (PFS).

The project’s probable ore reserve increased by 55%, from 46.3-million tonnes at 819 parts per million (ppm) cobalt in the 2018 PFS to 71.8-million tonnes at 710 ppm cobalt in the 2020 updated study.

The production target for the project has increased from 58.7-million tonnes at 802 ppm cobalt in the 2018 PFS to 98-million tonnes at 690 ppm cobalt in the 2020 updated study, with contained cobalt increasing from 47 000 t to 67 000 t.

The project’s projected operating life has also increased from 13 to 18 years, with average production expected to reach between 3 500 t/y and 3 600 t/y of cobalt.

Broken Hill will use a multi-openpit mining scenario that will extract ore using conventional drill-and-blast, load-and-haul, and dump processes. It is envisaged that the operation will use excavators and rigid body trucks along with a fleet of auxiliary equipment.

Up to 6.3-million tonnes a year of ore will be hauled to a stockpile area close to the processing plant located centrally to the pits. Waste material will be hauled to the waste emplacements situated close to each pit.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 7.5% discount rate, of A$770-million.

Capital Expenditure
The updated study has estimated that the preproduction capital expenditure for the project will now be A$70-million less than previously expected, at about A$560-million, inclusive of an increase in the front-end mining and concentrate throughput capacity, from 5.25-million tonnes to 6.3-million tonnes.

Planned Start/End Date
Commissioning is expected in 2025.

Latest Developments
Cobalt Blue Holdings has secured a three-year extension to major project status for the Broken Hill project. The project was initially granted major project status in March 2022.

The recognition by the commonwealth government provides the ASX-listed company with ongoing regulatory support for a project viewed as nationally significant, owing to its contribution to strategic priorities, regional development and economic growth.

“Obtaining a three-year extension to major project status for the Broken Hill cobalt project is an important enabler for our project development plans,” Cobalt Blue CEO Andrew Tong has said.

The extension is expected to assist Cobalt Blue in progressing investment discussions with offshore and local partners, including its Japanese project partner Iwatani, who  has also welcomed the renewed government backing.

Iwatani Australia MD Naomasa Ueda has indicated that the extension further strengthens the case for progressing the refinery towards a final investment decision.

The company has also indicated its intention to seek shareholder approval to change its name to Core Blue Minerals, as announced in February.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Cobalt Blue Holdings, tel +61 2 8287 0660 or email info@cobaltblueholdings.com.