Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF) reported a productive September quarter marked by regulatory, technical, and strategic progress across its portfolio. The company secured Works Approval for its Kwinana Cobalt Refinery (KCR), extended Major Project Status for the Broken Hill Cobalt Project (BHCP), and advanced kiln circuit optimisation.
At its Broken Hill Technology Centre (BHTC), Cobalt Blue produced cobalt sulphate to specification, completed a 100-hour solvent-extraction pilot, and advanced black-mass testwork. An engineering review at Halls Creek identified pathways for material economic uplift, while broader market dynamics shifted as the DRC introduced a cobalt export-quota system and the new Australia–US Critical Minerals Framework placed greater emphasis on refining and processing. The quarter also saw successful capital raisings and continued investor engagement supporting the company’s critical-minerals development strategy.
“The market has changed,” COB EO and MD Dr Andrew Tong said. “There is now strong and sustained interest across the country for the development of critical minerals mining and processing projects.
"Over the last quarter, the company has continued to make strong progress towards delivering on the strategy of building Australia’s first cobalt refinery. The WA Department of Water and Environmental Regulation granted a ‘Works Approval’ license for the refinery, and the company completed production of cobalt sulphate to the specifications outlined by our project partner Iwatani Corporation. The activities are now focused on securing binding offtake agreements which, in turn, unlock project financing.”
Kwinana Cobalt Refinery (KCR)
Cobalt Blue (COB) and partner Iwatani moved the KCR toward FID with Works Approval granted on September 16 under WA’s Environmental Protection Act, enabling construction activities and locking in emissions/discharge controls through engineering design.
Commercially, COB has non-binding LOIs from major buyers in the USA, Japan and France, which — together with Iwatani’s planned 30% offtake — cover ~70% of the refinery’s initial 3,000 tpa cobalt-sulphate capacity.
Ground-level view of Doral Fused Materials facility with COB staff (from left) Gajan Loganathan (Process Engineer), David Grabau (Head of External Affairs), Dr Andrew Tong (CEO), Adrian Naline (Process Engineer).
Feedstock risk has been reduced via a supply contract with Glencore for cobalt hydroxide, with further supplier discussions under way. Financing engagement with ECAs, banks and investors continues.
Technically, the Broken Hill Technology Centre (BHTC) is optimising the flowsheet for multiple inputs (hydroxide, Co-Ni sulphides and battery black mass). Next steps include lodging a development consent application with the City of Rockingham and securing standard operating permits (e.g., Dangerous Goods).
Broken Hill Cobalt Project (BHCP)
The Australian Government extended BHCP’s Major Project Status for three years, reinforcing its strategic importance. Rehabilitation planning progressed within ML86, with works expected in Q4 FY25, subject to contractor availability.
Process optimisation advanced with commissioning of a vertical tube kiln as an alternative to the rotary kiln for decomposing pyrite to pyrrhotite and elemental sulphur. Trials overcame power-supply/control challenges, maintained steady heat input and produced pyrrhotite plus high-purity crystalline sulphur, confirming technical robustness.
Results indicate potential reductions in kiln size, footprint and capital intensity. The optimisation program targets lower operating and capital costs, improving BHCP economics while complementing refinery development.
Broken Hill Technology Centre (BHTC)
BHTC, the R&D and piloting hub for both BHCP and KCR, advanced battery black-mass testwork using samples from two Australian producers, commencing leaching to recover cobalt, nickel and manganese; lithium options will be assessed next, supporting potential domestic recycling feedstock for KCR. The team refined solvent-extraction to crystallise cobalt sulphate meeting Iwatani’s pre-FID specifications.
A 100-hour solvent-extraction pilot at ~1.5 kg/h cobalt achieved stable separation from nickel, manganese, magnesium and calcium, with data feeding directly into KCR engineering design.
BHTC’s cobalt solvent extraction circuit.
BHTC hosted Senator Tim Ayres and continued collaborations with UQ’s Sustainable Minerals Institute and the ARC Training Centre in Critical Resources on pyrite thermal decomposition, including vertical-kiln prototyping to improve heat transfer and materials handling.
Halls Creek Project
An engineering review identified pathways to enhance the robust June 2025 Scoping Study: margin expansion through value-engineering; potential new revenue from silver at Onedin and cobalt at Sandiego; a centralised hub to integrate nearby deposits for scale and mine-life; and an exploration pipeline with high-impact targets such as Sandiego North.
Near-term work focuses on de-risking approvals (aided by existing mining leases), processing optimisation (including Stage 1 silver recovery) and resource growth via drilling along Sandiego extensions and regional prospects, with assessment of cobalt’s inclusion in future resource estimates.
Market, policy, corporate and finances
In September, the DRC replaced a seven-month cobalt export ban with a quota system through at least 2027; strict enforcement could constrain feedstock and swing the market to deficit by 2026, supporting prices around the long-term real average (~US$27/lb).
Policy tailwinds include the new Australia–US Critical Minerals Framework, emphasising investment-ready processing projects; KCR could supply ~40% of new non-FEOC refined cobalt for batteries and alloy-grade metal.
Global Cobalt Supply/Demand post DRC export quota policy.
COB raised A$2.5 million in September (placement plus Lind facility), issued additional options, and continued cost-containment (25–30% salary cuts from January 1, 2025; 4.2 million shares issued to staff on October 2, 2025).
- Tenure: 100% interests in ELs 8891, 6622, 9254, 8143, 9139 and MLs 86 & 87 (Broken Hill, NSW) and 51% across multiple licences at Halls Creek, WA; no changes this quarter.
- Cash flows: operating outflows A$1.16 million; investing outflows A$161,000; financing inflows A$2.37 million; quarter-end cash A$2.27 million, plus A$1.572 million received post-quarter and a A$700,000 short-term R&D facility.
Overall, COB is building mid-stream capacity across KCR, BHCP, BHTC and Halls Creek aligned with policies for resilient, allied critical-minerals supply chains.