Australian miner Cobalt Blue is set to review its Broken Hill cobalt project, believing it is unlikely to attract the necessary project financing in its current state.
According to the company's statement, a smaller project will provide an option for development if future market pricing on the cobalt market persists at subdued levels. The strategic review will focus on a condensed, higher-margin project.
The review will likely focus on reducing the mining inventory to higher grade material, reducing the pit sizes, as well as optimising mining fleet, supporting infrastructure, and process plant throughputs. The company will target a starter project with a minimum operating life of 10-12 years with a possibility of extension should economics be favorable.
Cobalt Blue also announced Iwatani Australia as its potential partner in developing the project, having executed a nonbinding heads of agreement that cements a shared strategic vision for both the Broken Hill and the cobalt and nickel refinery project in Kwinana.
Joe Kaderavek, CEO Cobalt Blue commented “Cobalt Blue is excited to have a potential partner of the calibre of Iwatani Corporation. We share a common view of Australia as a supplier to the global battery industry and look forward to developing both projects with Iwatani”.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
