Cobalt Blue Holdings Ltd has executed a binding pre-Final Investment Decision (FID) Consortium Deed with Iwatani Australia Pty Ltd to advance the development of the Kwinana Cobalt Refinery (KCR) in Western Australia, which is expected to be Australia’s first cobalt sulphate refinery.
The agreement outlines the conditions under which both parties will seek approval from their respective boards to proceed to a Final Investment Decision.
If approved, KCR would become Australia’s first cobalt refinery, producing 3,000 tonnes per annum of battery-grade cobalt sulphate or metal in its initial phase.
For EV markets
KCR is positioned to play a critical role in the global battery materials supply chain, offering a domestic source of high-purity cobalt sulphate for electric vehicle and energy storage markets.
The project will be developed under Cobalt Blue’s environmental, social and governance (ESG) framework, which aligns with international best practices.
Since initiating collaboration in December 2023, Cobalt Blue and Iwatani have completed technical due diligence and progressed commercial discussions with prospective feedstock suppliers and offtake partners.
Key conditions
Key conditions to be met before reaching FID include:
- production of sample materials that meet customer specifications using pilot-scale equipment at Cobalt Blue’s Broken Hill Technology Centre;
- completion of technical and independent due diligence studies;
- agreement on joint venture terms, supply and offtake arrangements, intellectual property licensing; and
- financing.
Furthermore, the project is also subject to Foreign Investment Review Board approval in Australia, with both companies working to fulfil all necessary prerequisites for a positive investment decision.
First cobalt sulphate refinery
The KCR's expected position as Australia’s first cobalt sulphate refinery— a significant step forward in Australia’s plans to refine critical minerals and build new value-added industries.
The project is planned to be a significant enabler for the delivery of Australia’s Critical Minerals Strategy and is uniquely positioned to address the existing significant market gap among Australia’s critical minerals partners.
KCR is designed to produce high-quality, battery-grade cobalt sulphate for use as a raw material to supply the precursor cathode active material (pCAM) industry.
Consequently, this could support the development of pCAM production capability and capacity in Australia.
Name change coming
In February, the company proposed a name change to Core Blue Minerals Ltd, aligning with its broader diversification strategy.
The proposal follows the company’s earn-in agreement with AuKing Mining for the Halls Creek Project in northern Western Australia.
Halls Creek is a large-scale copper, lead, zinc, silver, and gold project with notable cobalt potential.
COB stated that the agreement enables the company to apply its metallurgical, engineering, and project development expertise to expand and diversify its asset portfolio.