Cobalt Blue Holdings edges closer to a Final Investment Decision on its Kwinana Cobalt Refinery while progressing feasibility studies for Broken Hill and Halls Creek projects, supported by a structurally bullish cobalt market and tightening supply.
- Kwinana Refinery nears Final Investment Decision with ongoing cobalt sulphate sampling
- Broken Hill Preliminary Feasibility Study and environmental permitting targeted for Q4 2026
- Halls Creek metallurgical sampling completed; Scoping Study update underway
- DRC export quota forfeitures tighten cobalt supply outlook
- Consortium with Glomar advances US polymetallic nodule refinery project
Kwinana Cobalt Refinery Moves Toward Final Investment Decision
Cobalt Blue Holdings Limited (ASX:COB) is steadily advancing its flagship Kwinana Cobalt Refinery (KCR) project, Australia’s first dedicated cobalt sulphate refinery. The company continues producing cobalt sulphate samples at its Broken Hill Technology Centre (BHTC) for market evaluation, running these cycles in parallel with offtake negotiations. Discussions with prospective partners remain active following the company’s participation in the recent Cobalt Institute Congress, a key industry gathering.
Engineering efforts are focused on optimising process parameters and updating vendor pricing for 2026, with financing progress contingent on securing satisfactory offtake agreements. The cobalt market’s structural strength, supported by steady prices near US$26 per pound and robust EV demand, underpins the commercial outlook for KCR.
Broken Hill Cobalt Project Advances Feasibility and Environmental Approvals
The Broken Hill Cobalt Project (BHCP) is progressing a Preliminary Feasibility Study (PFS) aimed for completion in Q4 2026. The PFS focuses on optimising project scale and capital intensity, with an emphasis on reducing upfront costs while maintaining scalability for a minimum 10-year mine life. Testwork on oxide-transition material has confirmed positive pyrite recovery, potentially broadening mine scheduling options.
Environmental permitting is well advanced, with the draft Environmental Impact Statement approximately 80% complete. A Scoping Report to support the Secretary’s Environmental Assessment Requirements (SEARs) is under review and expected to be submitted in the September quarter. The development application will follow satisfactory PFS outcomes.
Broken Hill Technology Centre Drives Innovation with CSIRO Collaboration
Cobalt Blue’s Broken Hill Technology Centre continues to serve as a hub for R&D, notably through a co-development program with CSIRO focusing on recovering graphite from battery black mass. This program, partly funded by CSIRO’s Kick-Start initiative, targets selective flotation recovery of graphite, a significant component of black mass, with results expected by Q3 2026. While visual estimates of mineral abundance are promising, laboratory assays are pending to confirm economic viability.
Halls Creek Project Metallurgical Sampling and JV Milestones
The company completed a targeted core sampling program at its Halls Creek copper-silver project in Western Australia, supporting metallurgical testwork aimed at optimising the Stage 1 Onedin heap leach flowsheet and exploring a potential combined heap leach operation for Onedin and Sandiego deposits. This approach could simplify development and improve capital efficiency compared to the previously envisaged multi-stage processing.
Cobalt Blue has met the minimum expenditure to retain its 51% beneficial interest in the project and exercised its right to increase this to 75% by June 2028. The updated Scoping Study is targeted for completion in Q4 2026, setting the stage for a Preliminary Feasibility Study.
Cobalt Market Tightens Amid Supply Disruptions and DRC Export Quotas
The cobalt market remains structurally bullish, driven by electrification, data centre expansion, and defence spending. However, supply disruptions outside China are intensifying. Notably, Sherritt International’s Canadian refinery shutdown, ongoing offline status of Madagascar’s Ambatovy project, and Indonesian sulphuric acid shortages are constricting refined cobalt production.
Meanwhile, the Democratic Republic of Congo’s (DRC) export quota system has tightened further with unused quotas forfeited without carry-forward provisions. This policy change means 2026 cobalt hydroxide exports will likely fall well short of the 96,600-tonne ceiling, significantly tightening market supply beyond previous expectations.
Consortium Agreement with Glomar Targets US Polymetallic Nodule Refinery
Building on its strategic growth ambitions, Cobalt Blue entered a consortium agreement with Glomar Minerals LLC to develop Project Infinity, a US-based polymetallic nodule processing facility with an aspirational nameplate capacity of approximately 200,000 tonnes per annum. The company is conducting bench-scale testwork on nodule samples at BHTC and has shortlisted potential US refinery locations. This initiative aligns with US critical minerals supply chain priorities and represents a significant diversification from Cobalt Blue’s Australian projects.
Financial Position and Corporate Updates
For the June 2026 quarter, Cobalt Blue reported cash outflows from operating and investing activities, with a closing cash balance of A$4.265 million, providing an estimated 3.5 quarters of funding at current expenditure levels. The company completed its share issuance obligation under a placement agreement, issued 3.57 million shares to Lind Global Fund III LP, and applied for an upgrade from the OTC Pink to the OTCQB market in the US to enhance visibility among US investors.
The company also relinquished one non-core tenement in Broken Hill and continues to hold a portfolio of mining tenements across its key project regions. Exploration and evaluation expenditures remain focused on advancing technical studies and de-risking development pathways.
Bottom Line?
Cobalt Blue’s steady technical progress and strategic partnerships position it well amid a tightening cobalt market, but upcoming feasibility completions and offtake agreements will be critical milestones to watch.
Questions in the middle?
- Will Cobalt Blue secure binding offtake agreements to unlock financing for Kwinana Refinery?
- How will the DRC’s export quota enforcement impact global cobalt prices and project economics?
- Can the consortium with Glomar translate into a viable commercial polymetallic nodule refinery in the US?