Cobalt Blue Raises $2.5M, Gains Works Approval, and Extends Major Project Status
Cobalt Blue Holdings advances its Kwinana Cobalt Refinery with a critical Works Approval and secures letters of intent covering 70% of initial production, while its Broken Hill Cobalt Project gains a three-year Major Project Status extension.
- Works Approval granted for Kwinana Cobalt Refinery by WA environmental regulator
- Non-binding offtake letters of intent cover 70% of refinery’s initial 3,000 tpa capacity
- Broken Hill Cobalt Project Major Project Status extended for three years
- Successful 100-hour solvent extraction pilot and cobalt sulphate produced to specification
- Capital raising of $2.5 million supports ongoing development and technical optimisation
Strategic Milestone, Works Approval for Kwinana Refinery
Cobalt Blue Holdings Limited marked a significant step forward in its September 2025 quarterly activities with the receipt of a Works Approval from Western Australia’s Department of Water and Environmental Regulation (DWER) for its Kwinana Cobalt Refinery (KCR). This approval is a critical regulatory milestone, enabling the company to proceed with construction and operation activities within the Doral Fused Materials site. The Works Approval follows a thorough environmental and public health risk assessment, setting operational controls that will be integrated into the plant’s engineering design.
This regulatory green light not only clears a major hurdle but also signals the company’s readiness to advance towards a final investment decision (FID) in partnership with Iwatani Australia Pty Limited. The KCR aims to be Australia’s first dedicated cobalt refinery, producing high-purity cobalt sulphate for lithium-ion batteries and cobalt metal for defence applications.
Offtake Momentum and Financing Progress
On the financing front, the company raised $2.5 million through an institutional placement and a placement agreement with Lind Global Fund III, LP. Discussions continue with export credit agencies, commercial banks, and potential investors to secure the remaining funding required for project development. This capital injection supports ongoing technical development and operational readiness.
Technical Advances and Project Optimisation
The Broken Hill Technology Centre (BHTC) played a central role in refining the KCR’s production flowsheet during the quarter. Notably, the company completed a successful 100-hour solvent extraction pilot campaign, demonstrating effective separation of cobalt from other metals and producing cobalt sulphate crystals that meet offtake specifications. This operational data will inform the final engineering design of the refinery.
Additionally, Cobalt Blue commissioned a new vertical tube kiln prototype at the Broken Hill Cobalt Project (BHCP) to optimise thermal decomposition processes. This innovation aims to reduce kiln size, plant footprint, and capital costs, enhancing project economics. The BHCP itself received a three-year extension of Major Project Status from the Australian Government, underscoring its strategic importance in the national critical minerals agenda.
Market Dynamics and Strategic Positioning
The global cobalt market is experiencing a structural shift following the Democratic Republic of Congo’s (DRC) replacement of its cobalt export ban with a quota system. This policy restricts export volumes to less than half of 2024 levels, tightening supply and pushing prices to a three-year high. Cobalt Blue’s positioning with the Kwinana Refinery and BHCP aligns well with these market dynamics, offering a secure, domestically refined supply chain alternative.
Moreover, the new Australia–US Critical Minerals Framework supports investment-ready processing projects like KCR, aiming to fast-track development and secure supply chains for critical minerals essential to commercial and defence industries.
Financial and Operational Discipline
In response to market conditions and to preserve cash, Cobalt Blue implemented temporary reductions in staff cash salaries, supplemented by share-based compensation. The company ended the quarter with $2.27 million in cash and $700,000 in available financing facilities. Operational cash outflows are expected to remain steady as the company advances its development and exploration programs.
Looking ahead, Cobalt Blue is focused on converting LOIs into binding offtake agreements, securing project financing, and progressing regulatory approvals, including development consent applications for the refinery building.
Bottom Line?
With regulatory approvals secured and market conditions tightening, Cobalt Blue is poised to advance its cobalt refining ambitions, but binding offtake agreements and financing remain critical next steps.
Questions in the middle?
- When will Cobalt Blue finalize binding offtake agreements to trigger the final investment decision?
- How will the DRC’s cobalt export quota enforcement impact feedstock availability and pricing for Kwinana Refinery?
- What are the timelines and risks associated with obtaining remaining regulatory consents and construction commencement?
