Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF) has reported strong progress at its Broken Hill Technology Centre (BHTC), with a series of technical achievements positioning the company for a final investment decision (FID) on its Kwinana Cobalt Refinery (KCR) by the end of 2025.
The update underscores the company’s dual focus on commercial readiness at the refinery and optimisation of the Broken Hill Cobalt Project (BHCP), with both assets playing a central role in Australia’s push to secure critical mineral supply chains.
Refinery milestones achieved
At the BHTC, Cobalt Blue successfully completed a 100-hour solvent extraction pilot campaign, validating the separation of cobalt from impurities such as nickel, manganese, magnesium and calcium. The program achieved stable operations and generated operational data that will underpin final engineering design for the Kwinana facility.
The BHTC’s cobalt solvent extraction circuit.
The company also produced cobalt sulphate crystals meeting target specifications set out in offtake agreements, including with Japanese trading group Iwatani. In a diversification move, the Centre has for the first time produced high-purity cobalt metal, offering additional flexibility for future offtake partners.
Cobalt metal rounds recently produced at the BHTC.
With global demand for cobalt metal on the rise — underscored by the US Department of Defense’s recent purchase of 7,500 tonnes for strategic reserves — the option to switch between sulphate and metal output enhances the refinery’s commercial appeal.
“The recent milestones accelerate progress towards a final investment decision for the Kwinana Cobalt Refinery, enhancing confidence in its commercial potential,” said chief executive officer Dr Andrew Tong. “We are also pleased that the Centre attracts external R&D projects, strengthening Australia’s innovation ecosystem and developing the next generation of geoscientists — positioning COB at the forefront of the global critical minerals sector.”
Black mass and recycling potential
Cobalt Blue is also trialling battery black mass as an additional feedstock for the refinery. The material, derived from recycled lithium-ion batteries, contains cobalt, nickel and manganese already central to the refinery’s flowsheet.
COB’s black mass flowsheet.
Samples have been received from two Australian producers, with leaching studies under way. Lithium recovery options will be tested in the next phase, highlighting potential to expand into broader recycling.
Black mass samples from two separate sources processed at the BHTC.
The company said near-term black mass processing could de-risk the refinery, generate early revenues and support the development of a domestic circular economy for critical minerals.
Broken Hill project optimisation
On the mining front, the BHCP has been granted a three-year extension to its Major Project Status, recognising its role as a nationally significant development. Recent work has focused on optimising the kiln circuit for processing cobalt-bearing pyrite, with a new vertical tube kiln delivering promising results that could reduce plant footprint and capital costs.
(L-R) Vertical kiln prototypes, pyrrhotite product after pyrite conversion and sulphur collection in condenser.
The project continues to benefit from collaborations with the University of Queensland’s Sustainable Minerals Institute and the ARC Training Centre in Critical Resources, targeting efficiency gains and potential tailings reprocessing opportunities.
Strategic positioning
Cobalt Blue said the refinery remains on track for a late-2025 FID, supported by a binding consortium deed with Iwatani, a secured feedstock contract with Glencore, and the appointment of engineering partner Tetra Tech Coffey.
The company emphasised that developing a domestic cobalt refinery is central to Australia’s Critical Minerals Strategy, with demand from allied markets such as the US, Japan and Europe driving the need for diversified supply.