First Cobalt announces positive feasibility study results for Canadian Cobalt Refinery expansion
First Cobalt Corp. announced positive results from an independent feasibility study conducted on its permitted cobalt refinery in Ontario, Canada.
The study contemplates expanding the existing facility and adapting it to be North America's first producer of cobalt sulphate, an essential component in the manufacturing of batteries for electric vehicles.
The feasibility study demonstrates that the First Cobalt Refinery project can become a viable, globally competitive player in the North American and European electric vehicle (EV) supply chain. The study reinforces the strength of First Cobalt's business strategy for a rapidly evolving EV market that is heavily dependent on supply from China.
In July 2009, First Cobalt entered into a partnership with Glencore AG to fully fund (in an undiluted manner) a phased recommissioning of First Cobalt's refinery. This agreement was subject to the completion of the positive feasibility study. Glencore plans to use First Cobalt's refinery to treat cobalt feed material supplied from their DRC operations on a four in-a-half year rolling basis. The objective of this project is to produce approximately 25,000 tonnes of cobalt sulphate for the electric vehicle market. This represents 5% of the total global refined cobalt market and 100% of North American cobalt sulphate supply.
It is estimated that $56 million will need to be invested into the refinery, which will deliver an operating cost of an estimated $2.72/lb of cobalt produced. The report also estimates that cobalt demand from nickel-cobalt-manganese (NCM) batteries used in EVs will increase from approximately 20,000 tonnes in 2019, to over 730,000 tonnes in 2040. This places First Cobalt in a very strong position. The company has, therefore, attracted considerable attention from investors.
Discussions underway with Glencore on commercial arrangements, financing and allocation of project economics; third party and government funding opportunities also under review. Several EV manufacturers have expressed an interest in purchasing a North American cobalt sulphate. Several opportunities will be evaluated over the coming months that could enhance project economics further, including alternative approaches to managing elevated sodium concentrations prior to returning process water to the environment.
Prefeasibility-level study has also been completed on an early ramp-up scenario using existing permits and equipment to conduct trial runs processing a different type of feedstock.
First Cobalt announces positive feasibility study results for Canadian Cobalt Refinery expansion
Modified on Tuesday 5th May 2020
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First Cobalt announces positive feasibility study results for Canadian Cobalt Refinery expansion