Jervois Global Commences Feasibility Study for New Cobalt Refinery in the US
Jervois Global, a triple-listed mining company, has embarked on a bankable feasibility study (BFS) to explore the establishment of a greenfield cobalt refinery in the United States. This new refinery, with its focus on processing cobalt in sulphate form, aims to cater to the growing demand from the US auto industry. The operation is projected to have an annual capacity of 6,000 tons.
One key aspect of the refinery’s feed will be the utilization of approximately 20% recycled cobalt. Jervois plans to engage in a closed loop recycling system, whereby cobalt material previously used by customers will be returned to the company for reprocessing. This sustainable approach aligns with the growing emphasis on environmentally friendly practices.
The cost of the BFS, including the engineering expenses, will be fully covered by the US government. Jervois secured a $15 million funding agreement with the Department of Defense, ensuring that the financial burden of the feasibility study will be alleviated. Shareholders were informed of this significant development on Tuesday.
The selection of the refinery’s site is an ongoing process for Jervois. It will take into account various factors such as technical capabilities, operational efficiency, environmental considerations, and safety parameters. This meticulous approach aims to ensure the long-term competitiveness of the cobalt refinery in the US market. Furthermore, the decision will also encompass the analysis of the investment frameworks and incentives provided by the local, state, and federal levels of the US government to support this venture.
Jervois previously halted construction activities at its Idaho Cobalt Operations (ICO) due to a decline in cobalt prices and increasing construction costs in the United States. The company took this strategic decision to safeguard the value of ICO for its shareholders and key stakeholders during a period of low cobalt prices. However, Jervois has expressed its willingness to resume construction at ICO if the cobalt price exceeds $25 per pound.
The initiation of the BFS for the new cobalt refinery marks a significant step towards Jervois Global’s commitment to strengthening its presence in the US market. The company’s comprehensive study, funded by the US government, highlights the importance of producing cobalt sustainably and catering to the needs of the US auto industry. The finalization of the location decision will pave the way for the successful completion of the feasibility study.
With the growing demand for cobalt in various industries, including electric vehicles and renewable energy technologies, Jervois Global’s investment in a US cobalt refinery demonstrates its determination to capitalize on the opportunity presented by the cobalt market. This move aligns with the company’s strategic vision and commitment to delivering value to its shareholders and stakeholders.
