Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF) is accelerating its pursuit of the proposed Cobalt Nickel Refinery Project in Western Australia, with initial test results and government support solidifying the project's potential.
Early analysis of third-party feedstock conducted at the Broken Hill Demonstration Plant has yielded highly encouraging results, achieving cobalt extraction rates of 95% to 97%.
The green energy exploration company plans to further optimise the parameters of the tests to increase overall metal extraction rates.
The testing program is expected to be completed by the end of the first quarter, which will include significantly larger test samples.
More test samples
COB has also received two bulk samples of up to 5 tonnes each of targeted feedstock at Broken Hill, which are undergoing evaluation.
These samples will serve as the foundation for future commercial operations, while the company concurrently explores potential qualification within the US Inflation Reduction Act (IRA) and eligibility for its associated Clean Vehicle Credits (CVCs).
COB intends to use the end cobalt and nickel products to further offtake negotiations with interested parties this quarter, which will be the initial step in pre-qualifying the refinery for commercial purposes.
Cobalt hydroxide sample.
Government backing
Further underlining the project's significance, Western Australian Premier Roger Cook has expressed strong support for the project in a letter dated January 8, saying the refinery solidifies Western Australia as a "national battery material production hub" and strengthens the state's critical minerals processing capabilities.
Additionally, he said the successful development and operation of the refinery “will further cement Western Australia at the forefront of Australia’s efforts to develop sovereign capability in the advanced processing of critical minerals and diversify the critical mineral supply chains of strategically aligned countries”.
“We are thrilled to receive this support for our Cobalt-Nickel Refinery Project from the Premier of Western Australia,” COB chief executive officer Joe Kaderavek said.
“Having government support and strong test-work results de-risks the Cobalt Nickel Refinery project.”
Location advantage
The proposed refinery, located in the Kwinana Industrial Area in East Rockingham, WA, near the Fremantle Port, is owned by COB’s project partner, Iwatani Australia.
COB is of the view that partnering with an existing property owner on an operational site has clear advantages, namely ready access to power, utilities and infrastructure as well as favourable industrial zone policy settings and regulatory environment.
District view of the proposed refinery site.
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