Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF) has received a works approval from Western Australia’s Department of Water and Environmental Regulation for the Kwinana Cobalt Refinery. The approval is a key milestone towards achieving a final investment decision (FID) on the project with joint venture partner Iwatani Australia.
Aerial view of Doral Fused Materials facility.
Chief executive officer Dr Andrew Tong said: “We are thrilled to receive the Works Approval, marking a significant milestone in advancing the Kwinana Cobalt Refinery toward a final investment decision. At a time of strong global demand for new critical minerals midstream refining capacity, this achievement brings Australia’s first cobalt refinery one step closer to reality.”
Progress towards final investment decision
Cobalt Blue is on track to reach an FID by the end of 2025, with several milestones already achieved. These include the granting of the works approval, a binding consortium deed with Iwatani Australia, and a secured feedstock agreement with Glencore for cobalt supply from the Democratic Republic of Congo. Tetra Tech Coffey has been appointed as engineering partner, and flowsheet optimisation continues at the Broken Hill Technology Centre.
“Iwatani Australia welcomes the positive outcome of the Works Approval process, marking a significant step in strengthening our partnership with Cobalt Blue. We are committed to this collaboration and to advancing a secure, resilient supply chain for critical minerals,” Iwatani Australia managing director Naomasa Ueda said.
Strategic significance of the refinery
Australia and its critical minerals partners currently provide just 6% of global cobalt supply but are forecast by Benchmark Minerals Intelligence to meet as much as 60% of demand by 2030. With supply chains still dominated by China, demand is rapidly increasing across the United States, Europe, Japan, Korea, and the United Kingdom for secure and diversified sources.
Cobalt Blue is positioning itself to capture this opportunity through the Kwinana Cobalt Refinery, a low-capital expenditure project estimated at around A$120 million. The facility is designed to produce:
- Battery-grade cobalt sulphate for electric vehicle supply chains
- High-purity cobalt metal for industrial and defence applications
The Kwinana Cobalt Refinery aligns with Australia’s Critical Minerals Strategy and is considered a cornerstone initiative under the Future Made in Australia agenda, supporting sovereign supply chain resilience.
Importantly, bringing the refinery into production ahead of the Broken Hill Cobalt Project provides a pathway to de-risk mine development. In parallel, Cobalt Blue is actively exploring additional feedstock sources, including recycled battery black mass and cobalt byproducts from Australian nickel and copper operations.
Location, approvals, and next steps
The refinery will be built within Iwatani’s existing East Rockingham facility near the Kwinana Bulk Terminal, currently operated by Doral Fused Materials. Under Part V of the Environmental Protection Act 1986 (WA), the works approval covers the construction and operation of the refinery, following DWER’s assessment of potential environmental and public health impacts.
Cobalt Blue has accepted the licence conditions and will incorporate them into plant engineering. The company is preparing a Development Consent application for Rockingham City Council and progressing standard permits such as Dangerous Goods and Safety approvals. Technical development continues to ensure the project is construction-ready once FID is secured.