Name of the Project
Kwinana cobalt refinery (KCR).

Location
Kwinana Industrial Area, located 30 km from the Perth metropolitan area, in Western Australia.

Project Owner/s
Mining and minerals processing company Cobalt Blue Holdings (COB).

Project Description
KCR is a proposed cobalt/nickel facility representing Australia’s first cobalt sulphate refinery that will produce high-quality, battery-grade cobalt sulphate in response to the US Inflation Reduction Act, and EU markets. The refinery will process critical battery metals from third-party feedstock and mixed hydroxide precipitate from the Broken Hill cobalt project.

The project will be developed in stages. Stage 1 capacity is set at 3 000 t/y of cobalt (as cobalt sulphate) and about 500 t/y of nickel (as nickel metal). Stage 2 will double cobalt refining capacity.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Stage 1 has an after-tax net present value (NPV) of A$90-million and an internal rate of return (IRR) of 23%, with a project payback of 5.2 years.

With the Stage 2 expansion, the project could return an incremental after-tax NPV of A$105-million and an IRR of 64%. Stage 1 and 2 combined results in an after-tax NPV of about A$175-million and an internal rate of return of 29%, generating earnings before interest, taxes, depreciation and amortisation of about A$46-million a year.

Capital Expenditure
Capital costs for Stage 1 are estimated at A$60-million. Stage 2 is estimated at A$23-million.

Planned Start/End Date
Stage 1 construction is expected to start in the first half of 2025, with completion expected within 12 months. Stage 2 is expected to take 12 months to build during 2028 and be operational from 2029. Stage 1 and 2 combined has an estimated capital expenditure of A$83-million.

Latest Developments
Cobalt Blue has signed a binding pre-final investment decision (pre-FID) consortium deed with Iwatani Australia (IWA) to progress development.

The agreement outlines key conditions the parties must meet before they seek board approval to proceed with the project, including completion of technical studies, due diligence reviews, and the establishment of feedstock supply and offtake agreements. 

FIDs are targeted by December 31, 2025.

Cobalt Blue and IWA have been working together since December 2023 on project development, including technical due diligence and commercial partner engagement. The parties have committed to exclusive negotiations until an FID is made, or the deed is terminated.

Subject to a positive FID being made by both parties, they intend to promptly form an incorporated joint venture (with COB to hold 70% and IWA 30%) to build, commission and operate KCR, Cobalt Blue has said in a statement.

The refinery is planned for Iwatani’s site in the Kwinana-Rockingham industrial precinct, south of Perth, offering proximity to Fremantle port and co-location advantages with Iwatani’s fused zirconia operation. Cobalt Blue has appointed Tetra Tech for detailed engineering and Green Values to manage permitting.

Spartan has highlighted its strict environmental, social and governance, as well as traceability, standards, and has noted that it will work only with suppliers that meet its ethical sourcing requirements and do not contravene US Foreign Entities of Concern rules.

COB plans to seek shareholder approval to change its name to Core Blue Minerals, reflecting its broader ambitions across cobalt/nickel refining, mine waste reprocessing and strategic projects in Western Australia and New South Wales.

Key Contracts, Suppliers and Consultants
Not disclosed.

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