Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF) has passed another milestone on the path to developing a Cobalt-Nickel Refinery in the Kwinana Industrial Area of Western Australia with the appointment of Tetra Tech (NASDAQ:TTEK) to carry out detailed engineering works.
The scope of work for Tetra Tech, a leading, global provider of high-end consulting and engineering services, will encompass detailed process plant design and construction participation.
With wide-ranging engineering, procurement, and construction management (EPCM) experience, Tetra Tech will bring extensive knowledge to the refinery project.
“Significant milestone”
Cobalt Blue CEO Joe Kaderavek said “We are excited to partner with Tetra Tech, a demonstrated leader in developing world-class resource projects.
"Appointment of an engineering firm is a significant project milestone of our journey in developing Australia’s first cobalt sulphate refinery.”
About the refinery
COB is developing the Cobalt-Nickel Refinery Project in the Kwinana Industrial Area, which is just 30 kilometres from the Perth metropolitan area.
Iwatani has partnered with COB for the project and will use the existing Doral Fused Material (DFM) site in East Rockingham, near the Kwinana Bulk Terminal, as the location for the refinery.
Cobalt-Nickel Refinery milestones and indicative timetable.
Positive study
A Cobalt-Nickel Refinery Study published in November 2023 detailed a large-scale cobalt-nickel operation representing Australia’s first cobalt refinery producing a high-quality, battery-grade cobalt sulphate.
The target markets are battery makers and electric vehicle manufacturers who will produce US Inflation Reduction Act (IRA) and EU Critical Raw Materials Act-compliant products.
This study presents a compelling evaluation of a cobalt and nickel refining business expected to generate stable margins throughout the highs and lows of the cobalt price cycle.
COB's refinery represents a significant step in diversifying global cobalt processing and is defined as follows:
- Initial plant capacity for 3,000 tonnes per annum cobalt (sold as cobalt sulphate) and 500 tonnes per annum nickel (sold as metal).
- Allowance in footprint for later expansion to larger capacity of 6,000 tonnes per annum cobalt and 1,000 tonnes nickel.
Toward construction decision
COB continues to progress the development of the refinery and has workstreams on track for a decision in the second half of 2024 to proceed to construction. Activities include:
- Pilot testing of the process flowsheet at the COB Technology Development Centre in Broken Hill, New South Wales.
- Securing feed supply contracts and offtake contracts.
- Progressing permitting studies and application documents.
- Completing process engineering documentation.
- Establishing joint-venture arrangements with Iwatani Australia.
- Seeking financial support for the project.
About Tetra Tech
Tetra Tech, which hosts 550 offices worldwide with around 28,000 employees, has experience with complex hydrometallurgical plants and associated materials handling.
It has significant experience in complex plant development, including Iluka’s Eneabba Project (Phase 2) and Arafura’s SX Plant Detailed Design.
Importantly for the refinery project, Tetra Tech has worked with Iwatani Australia on a range of projects over the last 10 years and knows the site and personnel well.
COB believes that Tetra Tech’s technical expertise and previous experience will be invaluable in bringing the Cobalt-Nickel Refinery project through the stages of concept and detailed design.