Cobalt Blue updates capital cost for Kwinana cobalt refinery
Phase 1 of Cobalt Blue’s planned cobalt/nickel refinery in the Kwinana Industrial Area, near Perth, will require a capital investment of A$60-million, the company has reported.
This updated capital estimate is a revision from the previous guidance of A$48-million for the initial phase, which is expected to have a production capacity of 3 000 t/y of cobalt and 500 t/y of nickel.
“The latest study further demonstrates the Kwinana refinery is a compelling, low-cost investment that rapidly injects Cobalt Blue into the mid-stream segment of the strategically aligned nations’ critical minerals supply chain,” said CEO Joe Kaderavek.
He added that the long-term returns from future expansion stages were particularly attractive.
Phase 1 of the project will generate, on a 100% basis, an after-tax net present value (NPV), using an 8% discount, of A$68-million and an internal rate of return (IRR) of 23%. This phase has a 5.2-year payback period.
Construction is scheduled to begin in the first half of 2025, with completion anticipated within 12 months.
Stage 2 of the project presents growth potential, allowing the plant to process Australian and international supplies of cobalt/nickel hydroxide or sulphides, as well as other intermediates, including recycled black mass. This expansion could increase cobalt production to 6 000 t/y.
The additional capital expenditure for Stage 2 is estimated at A$23-million, offering a cost-effective capacity increase compared with the initial build. Phase 2 is expected to generate an NPV of A$90-million with a robust IRR of 64%.
Once operational, the Kwinana refinery will be Australia’s first facility dedicated to producing high-quality, battery-grade cobalt sulphate.
Cobalt Blue has previously named Iwatani as its partner in the development of the refinery.
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