Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF) commercial manager Joel Crane talked to Proactive about the company’s pivotal change in strategy to move its refinery operations from Broken Hill to Kwinana. The move is expected to accelerate the timeline for producing battery-grade cobalt sulphate and allow for early revenue streams through third-party material refinement.
Crane shed light on the company's revamped strategy: "It's a geographic split. We're still building a large-scale cobalt mine in Broken Hill, but we're going to move that refinery to Kwinana. The relocation promises faster project completion due to lower capital intensity. "Once we start construction next year, the refinery will be finished in 2025," he added.
Before the Broken Hill cobalt mine becomes operational, the company plans to refine third-party material. "We'll be in the market to procure and process third-party material from Australia, and other countries like the Philippines, perhaps even Indonesia," Crane stated. The early activation of the refinery offers multiple benefits. "First of all, it obviously gives us that revenue. Secondly, it de-risks our overall project. And thirdly, it injects us into the US and allied critical minerals supply chain quite early," he highlighted.
On sourcing third-party material, Crane noted that they are in the final stages of negotiations and will soon begin its "refinery development program" to assess material suitability and marketability.
DFS on track for this year
Regarding the Broken Hill cobalt project, Crane confirmed that the definitive feasibility study (DFS) is on track for completion by year's end. "We're in the final stages working with three of the great consultants in Australia—Worley, GHD, and SRK," he said.
Cobalt Blue seems poised to establish itself as a key player in the global cobalt market, not least as the first cobalt refinery to be built outside of China in 30 years.