Cobalt Blue's (ASX:COB) Joe Kaderavek, chief executive officer, and Robert Biancardi, chairman, recently completed a successful commercial/technical visit to China.
They travelled extensively across four provinces, visiting companies responsible for over 80% of Chinese cobalt capacity.
China processes around 50% of the world’s cobalt and has long dated experience with cobalt extraction and technical expertise required to make cathodes (cobalt containing electrodes found in lithium-ion batteries).
COB management believes there are enormous benefits to co-operation, for example deploying best in class technologies to achieve high yield, low cost extraction processes.
The team were very impressed by Chinese research and development efforts, particularly focussed upon cobalt salt production from sulphide materials (such as Cobalt Blue).
Further, plant design and state of the art process control allow for efficient processing of very high material volumes.
Cobalt Blue said from their viewpoint, Chinese refineries are looking for diversification away from an increasing dependency on sourcing cobalt from the African copper belt.
The collective view was that current pricing (circa US$25/lb) was sustainable, with all industry participants making a good margin.
However, further upward price pressure may cause battery makers to “thrift” and use lower cobalt content cathodes in response.
Importance of Thackaringa
Cobalt Blue is currently undertaking one of the largest drilling campaigns among cobalt explorers globally.
The focus is on the company's Thackaringa project where it is forecast to triple the resource in coming months.
Looking forward - the company will be delivering a Preliminary Feasibility Study by mid-2018 and a full Bankable Feasibility Study by mid-2019.