Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF) has made substantive progress in the past financial year with its steady focus on developing its Broken Hill Cobalt Project (BHCP) in Far West New South Wales, even during the lean 24-month period of low cobalt market pricing.
The company believes that the market has now turned and its shareholders are positioned strongly to take advantage of further cobalt price strength.
MHP sample production
Cobalt Blue said its mixed hydroxide product (MHP) sample production was being finalised following the dispatch of the first commercial samples of MHP in June 2021.
During the course of the more than 1,000 operating hours of the Broken Hill Pilot Plant, its technical team gained a strong understanding on the scalability of the processing technology, as well as optimising critical equipment selection.
These lessons will underpin the transition to the demonstration plant and ultimately to the commercial BHCP operation.
Sample partner program takes off
With pilot plant operations underway, the company kicked off its Global Cobalt Sample Partner Program, initially only expecting 6-10 members of the global battery industry to register interest and then evaluate the quality of its product, as a stepping stone to a closer commercial relationship.
However, the program surpassed 30 partners requesting cobalt samples.
These partners represent battery industry participants, energy storage systems (ESS) and electric vehicle (EV) manufacturers and mining companies.
Expands footprint
COB has also expanded BHCP footprint by 125 square kilometres or some 130% over FY21 and by 235% since its listing in 2017.
Ultimately, the life of the BHCP refinery may well extend beyond the resources currently identified, as the company continues to examine cobalt in resource opportunities within the broader Broken Hill district.
A joint review by chairman Robert Biancardi and chief executive officer Joe Kaderavek said: “We believe cobalt exploration across the region is in its infancy and are excited by the potential for resource growth.”
Actively promoted
BHCP has been included in the Australian Government Critical Minerals Prospectus and NSW Government Minerals Strategy and is being actively promoted via government to overseas partners.
Cobalt Blue’s 'first mover' commercial partner, LG International, the resources investment arm of LG Corporation, continues to be supportive with regular progress meetings held.
As part of its global commercial commitments, Cobalt Blue executives 'meet' via conference calls with its partners and other interested parties several times per year.
“Our relationships continue to grow, particularly within the key cobalt refining and consumer regions/countries of the European Union, the United States, Korea, Japan and India,” the joint review noted," the chairman and CEO said.
Groundwater allocation
Cobalt Blue has also purchased a sufficient groundwater allocation that will ensure the BHCP will comply with the requirements of the Water Management Act 2000 for the estimated groundwater interception attributed to the proposed open cut mining operations.
Cobalt in Waste Streams Project
In the FY21, the company unveiled its Cobalt in Waste Streams Project, a rollout of existing technology and test facilities to examine cobalt recovery from waste streams.
The work will involve reviews of Australian sulphide waste streams (potentially containing cobalt, copper and gold), with an initial focus on the resource-rich district of Mt Isa/Cloncurry, where the company’s research has identified substantial cobalt in tailings.
The objective includes a prioritised set of opportunity targets for deeper investigation. In due course, this review will examine opportunities across Australia.
Closing cobalt gap
Cobalt Blue is also looking forward to closing the cobalt resource-supply gap in Australia.
Australia has more than 16% of global cobalt resources but produces only 6% of supply.
“There is little doubt that we have plenty of potential, particularly considering our stable jurisdiction and ethical credentials,” the review added.