Cobalt Blue Holdings has secured a pivotal three-year contract with Glencore to supply up to 50% of feedstock for its upcoming Kwinana Cobalt Refinery, marking a major step in advancing Australia's critical minerals ambitions.
- Three-year contract with Glencore for cobalt hydroxide supply
- Glencore to provide 50% of Kwinana Cobalt Refinery’s feedstock
- Feedstock sourced from Glencore’s DRC operations with strong ESG credentials
- Refinery aims to produce battery-grade cobalt sulphate and cobalt metal
- Partnership with Iwatani Australia to develop refinery in Western Australia
Strategic Partnership Secures Feedstock Supply
Cobalt Blue Holdings Limited (ASX: COB) has formalised a significant supply agreement with global mining giant Glencore International AG. The three-year contract commits Glencore to provide up to half of the cobalt hydroxide feedstock required for Cobalt Blue’s Kwinana Cobalt Refinery (KCR), a project poised to become Australia’s first cobalt sulphate refinery. This agreement guarantees a minimum of 3,750 tonnes of cobalt hydroxide over the contract term, underpinning the refinery’s initial feedstock needs and reducing project risk ahead of final investment decisions.
CEO Dr Andrew Tong highlighted the importance of this deal, noting it not only derisks the project but also strengthens Cobalt Blue’s position in the global cobalt supply chain. Partnering with one of the world’s largest cobalt producers provides both credibility and a reliable supply base as the company advances its refinery development.
Refinery Development and Market Positioning
The Kwinana Cobalt Refinery, being developed jointly with Iwatani Australia, aims to produce high-purity battery-grade cobalt sulphate, a critical component for lithium-ion batteries powering electric vehicles and other technologies. Additionally, the refinery will have the capacity to produce cobalt metal for industrial uses including aerospace and defence applications. Situated in Western Australia’s Kwinana-Rockingham industrial precinct, the refinery benefits from proximity to Fremantle port and existing infrastructure, facilitating efficient import of feedstock and export of finished products.
This project aligns closely with Australia’s Critical Minerals Strategy, addressing a notable gap in domestic refining capacity and supporting the development of secure, value-added supply chains for critical minerals. The partnership with Iwatani, a subsidiary of Japan’s Iwatani Corporation with a global footprint in energy and industrial gases, further positions the refinery to serve key markets in Asia and beyond.
Responsible Sourcing and ESG Commitments
Glencore’s cobalt supply will come from its Kamoto Copper Company and Mutanda Mining operations in the Democratic Republic of Congo (DRC), the world’s largest cobalt-producing country. Both operations have been independently certified for responsible mining practices, holding The Copper Mark and Responsible Minerals Assurance Process (RMAP) Conformant status. Cobalt Blue and Iwatani have committed to sourcing feedstock exclusively from suppliers adhering to stringent environmental, social, and governance (ESG) standards, including compliance with OECD guidelines for responsible minerals sourcing.
While prioritising Australian feedstock, Cobalt Blue acknowledges current market realities necessitate sourcing from international suppliers to meet the refinery’s full feedstock requirements. The company is actively engaging with other potential suppliers to complement the Glencore contract.
Looking Ahead
With detailed engineering underway and permitting progressing, the feedstock contract with Glencore marks a critical milestone towards the Kwinana Cobalt Refinery’s commercial operations. The agreement not only secures a substantial portion of raw material supply but also signals confidence from a major industry player in the project’s viability and strategic importance.
As Cobalt Blue moves closer to final investment decisions, the company’s evolving partnerships and adherence to responsible sourcing principles position it well to play a key role in the emerging global battery and critical minerals supply chains.
Bottom Line?
Cobalt Blue’s Glencore deal de-risks Kwinana Refinery, setting the stage for Australia’s critical minerals leap.
Questions in the middle?
- What progress will Cobalt Blue make securing the remaining 50% of feedstock?
- How will global cobalt market dynamics and pricing impact refinery economics?
- What are the timelines and risks around final investment decision and project commissioning?