Cobalt Blue Hits Key Milestones Ahead of 2025 Refinery Decision
Cobalt Blue Holdings reports key technical milestones at its Broken Hill Technology Centre, progressing toward a final investment decision for its Kwinana Cobalt Refinery by late 2025 amid a recovering cobalt market.
- Successful 100-hour cobalt solvent extraction pilot completed
- Production of cobalt sulphate and high-purity cobalt metal achieved
- Battery black mass evaluated as new feedstock for refinery
- Broken Hill Cobalt Project granted three-year Major Project Status extension
- Kwinana Refinery on track for final investment decision by end-2025
Breaking New Ground at Broken Hill Technology Centre
Cobalt Blue Holdings Limited has marked significant progress at its Broken Hill Technology Centre (BHTC), a critical hub for refining cobalt from ore to finished products. The company recently completed a 100-hour pilot campaign demonstrating effective cobalt solvent extraction, successfully producing cobalt sulphate crystals that meet partner specifications. This milestone not only validates the refinery’s technical flowsheet but also strengthens confidence in its commercial viability.
In a strategic diversification, Cobalt Blue has also produced high-purity cobalt metal at the Centre, responding to rising global demand for this critical material, especially from industrial and defense sectors. This capability adds flexibility to the Kwinana Cobalt Refinery’s offtake agreements, positioning the project to serve multiple market needs.
Innovating with Battery Black Mass and Feedstock Flexibility
Recognizing the growing importance of sustainability and circular economy principles, Cobalt Blue is advancing testwork on battery black mass, a recycled intermediate from lithium-ion batteries, as an additional feedstock for the refinery. Early leaching studies targeting cobalt, nickel, and manganese are underway, with lithium recovery options to follow. This initiative could open new revenue streams and reduce reliance on traditional mining, aligning with Australia’s critical minerals strategy.
The company is in advanced discussions to secure regular black mass supplies from Australian operators, aiming to de-risk the refinery project and generate early revenue while showcasing its role in domestic battery recycling.
Kwinana Refinery and Broken Hill Project – On Track and Nationally Significant
Cobalt Blue is progressing steadily toward a final investment decision (FID) for the Kwinana Cobalt Refinery by the end of 2025. The project benefits from secured feedstock contracts, including one with Glencore sourced from the Democratic Republic of Congo (DRC), and a binding pre-FID consortium deed with Iwatani. Engineering partner Tetra Tech Coffey has been appointed to support detailed design and optimisation.
Meanwhile, the Broken Hill Cobalt Project (BHCP) has received a three-year extension to its Major Project Status, underscoring its strategic importance to Australia’s critical minerals ambitions. Recent kiln circuit optimisation trials at the BHTC aim to reduce operating and capital costs, further enhancing project economics.
Market Context – Supply Disruptions and Price Dynamics
The cobalt market is navigating supply shocks following the DRC’s export ban, which has significantly reduced cobalt intermediate imports into China. While prices spiked initially, they have since plateaued, with market participants anticipating tighter inventories and more competitive pricing ahead. Cobalt Blue’s timing to bring a domestic refinery online aligns with this evolving market landscape, potentially offering a secure, diversified supply source outside traditional channels.
Collaborations with academic institutions such as the University of Queensland’s Sustainable Minerals Institute and the ARC Training Centre in Critical Resources further bolster Cobalt Blue’s technological edge and innovation capacity.
Bottom Line?
As cobalt supply tightens globally, Cobalt Blue’s refinery progress and feedstock innovation position it to capitalize on a market poised for recovery.
Questions in the middle?
- Will Cobalt Blue secure long-term black mass feedstock contracts to support refinery operations?
- How will cobalt price volatility impact the timing and scale of the Kwinana Refinery’s final investment decision?
- What further cost reductions can be achieved through kiln circuit optimisation at Broken Hill?
