Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF) has been granted Major Project Status for its flagship Broken Hill Cobalt Project (BHCP) by the Australian Government.
The status extends for a three-year period to support the project through its development phase.
Assignment of this status by the government highlights the strategic significance of the BHCP in Far West NSW near the mining stronghold of Broken Hill as a key national project.
It is a formal recognition of the national economic implications of the BHCP through its contribution to growth, productivity, government revenue, industry and regional development.
Investors have responded strongly to the news, sending shares as much as 25% higher this morning to A$0.575 while COB's market cap is roughly A$141.4 million.
Australia a global cobalt player
The BHCP remains the only large-scale, ex-African, greenfield primary cobalt project globally. Production at the project will make Australia the second biggest producer of cobalt in the world.
COB CEO Joe Kaderavek said: “Granting Major Project Status to the Broken Hill Cobalt Project will greatly assist COB to raise development capital by recognising the strategic importance given to this project by the Australian Government.
"This milestone is critically important for overseas partners and well-timed in our development journey. COB can now boast both Made in Australia and Backed by Australia”.
The BHCP integrated mine and refinery operation aims to produce high-quality, battery-ready cobalt sulphate using COB’s proprietary technological processing.
Product specifications can be tailored to suit the advanced lithium-ion batteries globally, including the next generation of solid-state batteries.
Environmental and geopolitical alignment
Critical minerals projects such as BHCP are integral components of the Australian Critical Minerals Strategy and Australia’s Long Term Emissions Reduction Plan.
They also align with national security and strategic interests to bolster geopolitical stability and building sovereign capability in the sector.
To date, the BHCP has attracted strong support from numerous stakeholders including the New South Wales Government, Broken Hill City Council and Foundation Broken Hill, as well as interest in partnerships from several commercial players in the battery or battery chemical space.
The awarding of Major Project Status provides COB with extra support from the Major Project Facilitation Office Agency, including a single entry point for Federal Government approvals, project support and coordination with state approvals.
About Cobalt Blue
COB is an exploration company targeting green energy technology and strategic development of the Broken Hill Cobalt Project.
The strategic metal is in strong demand for new generation batteries, particularly the lithium-ion batteries now being widely used in clean energy systems.
BHCP is 23 kilometres west of Broken Hill and 400 kilometres by rail from Port Pirie and consists of four granted tenements (EL6622, EL8143, ML86 and ML87) with total area of 63 square kilometres.
The main targets for exploration are well known and document large-tonnage cobalt-bearing pyrite deposits. The project area is under-explored, with the vast majority of historical exploration directed at or around the outcropping pyritic cobalt deposits at Pyrite Hill and Big Hill.