Rising Cobalt Prices and DRC Quotas Put Pressure on Cobalt Blue’s Next Moves
Cobalt Blue Holdings has fully repaid its $1 million promissory note to American Rare Earths, unencumbering its flagship Broken Hill Cobalt Project amid a strengthening cobalt market.
- Final $1 million promissory note repayment to American Rare Earths completed
- Broken Hill Cobalt Project now free of financial encumbrances
- JORC-compliant resource of 126.5 million tonnes at 867 ppm cobalt equivalent
- Patented process validated for cobalt extraction from pyrite
- Cobalt prices rise following DRC export quota announcement
Debt Cleared, Project Unencumbered
Cobalt Blue Holdings Limited has announced the full repayment of its $1 million promissory note, plus accrued interest, to American Rare Earths Limited. This repayment marks the discharge of all financial obligations related to the note, which was originally issued in January 2020 as part of Cobalt Blue's acquisition of ARR's interest in the Broken Hill Cobalt Project (BHCP). With this step, the BHCP tenement package is now unencumbered, clearing a significant hurdle for the project’s advancement.
A Globally Significant Cobalt Resource
The BHCP, located near Broken Hill in New South Wales, holds one of the world’s largest undeveloped cobalt resources outside Africa. The project’s JORC-compliant mineral resource totals 126.5 million tonnes at 867 parts per million cobalt equivalent, including substantial quantities of cobalt, sulphur, and nickel. This scale positions BHCP as a potential strategic supplier of ethically sourced cobalt, a critical metal in the global energy transition and electrification supply chains.
Innovative Processing Technology Validated
Central to the project’s commercial viability is Cobalt Blue’s patented process for extracting cobalt from pyrite, a mineralogical form unique to BHCP. In 2023, the company successfully operated a Demonstration Plant that processed mined material through a full sequence of unit operations, producing high-purity cobalt and nickel sulphate crystals. This breakthrough validates the company’s innovative flowsheet and strengthens the case for scaling up production.
Market Dynamics Favorable Amid DRC Export Quotas
Recent developments in the cobalt market add momentum to Cobalt Blue’s progress. The Democratic Republic of Congo, which dominates global cobalt supply, announced it will lift its export suspension but impose a quota system limiting exports to 87,000 tonnes annually. This quota is significantly lower than previous export volumes, tightening supply. Since the announcement, cobalt prices have surged 15%, reaching their highest level since early 2023, enhancing the economic outlook for projects like BHCP.
Looking Ahead, Strategic Positioning and Rebranding
Beyond the project itself, Cobalt Blue is advancing midstream processing capabilities in Australia, including the development of the Kwinana Cobalt Refinery, which aims to produce high-purity cobalt products for the lithium-ion battery and defense sectors. The company also plans to seek shareholder approval to change its name to Core Blue Minerals Limited, signaling a strategic evolution as it positions itself at the forefront of Australia’s critical minerals industry.
Bottom Line?
With its debt cleared and innovative processing proven, Cobalt Blue is poised to capitalize on tightening cobalt markets and rising prices.
Questions in the middle?
- What are the next development milestones and timelines for the Broken Hill Cobalt Project?
- How will the DRC’s export quota system impact global cobalt supply and BHCP’s market positioning?
- What are the prospects and timelines for scaling up the Kwinana Cobalt Refinery?
