Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF)has secured a major feedstock supply contract with Glencore International AG, covering up to 50% of the cobalt hydroxide needs for its Kwinana Cobalt Refinery (KCR) over an initial three-year term.
This is a key milestone in de-risking the project and progressing towards a final investment decision, while establishing COB as a strategic player in the global cobalt supply chain. The KCR is expected to become Australia’s first cobalt sulphate refinery, aligned with national critical minerals strategies and global electric vehicle (EV) market demand.
“We are thrilled to formalise a relationship with Glencore. Locking in at least 50% of KCR’s feedstock requirements is a significant step in derisking the project that brings us closer to FID,” COB CEO Andrew Tong said.
“Developing a commercial partnership with one of the world’s largest diversified miners helps solidify COB’s position as a participant in the global cobalt industry. This relationship will also enable COB to play a strategically important role in building new battery and critical minerals supply chains among like-minded countries.”
Glencore supply contract secures initial throughput
Under the agreement, Glencore will supply 3,750 tonnes of cobalt hydroxide over three years — 750 tonnes in the first year and 1,500 tonnes in each of the second and third years. This covers half of KCR’s planned initial feedstock needs.
Material will be sourced from Glencore’s Kamoto Copper Company and Mutanda Mining operations in the Democratic Republic of Congo (DRC), which have been awarded the Copper Mark and RMAP Conformant status for responsible mining practices.
Pricing will be benchmarked to Fastmarkets indices, with payment terms in United States dollars.
Kwinana refinery poised to fill strategic supply chain gap
The KCR is jointly developed with Iwatani Australia (IWA) at its Kwinana-Rockingham industrial precinct property. It will produce battery-grade cobalt sulphate for the precursor cathode active material (pCAM) industry, as well as cobalt metal for industrial and defence applications. The project will leverage infrastructure already in place at the IWA fused zirconia operation and its proximity to Fremantle Port for efficient logistics.
COB's Broken Hill Technology Centre has been piloting the flowsheet since early 2024. Engineering and permitting processes are well advanced, with Tetra Tech and Green Values appointed to lead technical and regulatory approvals, respectively.
ESG compliance and future feedstock plans
COB and IWA are committed to sourcing only from suppliers that meet stringent environmental, social and governance (ESG) criteria and comply with laws in their jurisdictions and those of origin.
The companies will avoid engagement with parties that contravene US Foreign Entities of Concern (FEOC) standards.
COB is continuing discussions with other Australian and international suppliers to complete feedstock requirements beyond the Glencore contract.
Strategic outlook and corporate direction
The refinery aligns with Australia's Critical Minerals Strategy by adding domestic value to cobalt resources.
COB’s broader project portfolio includes the Broken Hill Cobalt Project, the Halls Creek Project, and ReMine+ waste recovery opportunities. The company also plans to change its name to Core Blue Minerals Ltd, pending shareholder approval.