First Cobalt inks cobalt hydroxide feed arrangements for refinery
2021-01-13 11:46:29 [Print]
Canadian-based First Cobalt has entered into long-term cobalt hydroxide feed arrangements with diversified miner Glencore and IXM SA, a fully owned subsidiary of China Molybdenum Company (CMOC) to provide 4,500tpy of contained cobalt to the First Cobalt Refinery from 2022. Once operational, the First Cobalt refinery will be North America's only producer of cobalt sulfate for the electric vehicle (EV) market.
Under the terms of a binding cobalt hydroxide supply contract, Glencore will supply the First Cobalt refinery from the Kamoto Copper Company mining operation in the Democratic Republic of Congo (DRC) for five years, commencing in the fourth quarter of 2022.
First Cobalt has also signed a memorandum of understanding with IXM SA for cobalt from CMOC's Tenke Fungurume mining operation in the DRC over the same time period. First Cobalt and IXM SA will work to complete a definitive contract.
Cobalt hydroxide will be bought at prevailing market prices. Together the arrangements will provide 90% of the refinery's yearly contained cobalt capacity of 5,000tpy. The company plans to buy an additional 500tpy of feed at a later date through contract or spot market purchases.
The supply agreements and commencement of shipments are conditional on First Cobalt obtaining the necessary permits and a working capital facility. Offtake discussions, financing and permitting are on schedule, supporting commencement of construction in mid-2021.
The First Cobalt refinery is a hydrometallurgical cobalt refinery located north of Toronto, in the community of Temiskaming Shores. The facility was permitted in 1996 with a nominal throughput of 12t a day and operated intermittently until 2015, producing cobalt, nickel and silver products.
Under the terms of a binding cobalt hydroxide supply contract, Glencore will supply the First Cobalt refinery from the Kamoto Copper Company mining operation in the Democratic Republic of Congo (DRC) for five years, commencing in the fourth quarter of 2022.
First Cobalt has also signed a memorandum of understanding with IXM SA for cobalt from CMOC's Tenke Fungurume mining operation in the DRC over the same time period. First Cobalt and IXM SA will work to complete a definitive contract.
Cobalt hydroxide will be bought at prevailing market prices. Together the arrangements will provide 90% of the refinery's yearly contained cobalt capacity of 5,000tpy. The company plans to buy an additional 500tpy of feed at a later date through contract or spot market purchases.
The supply agreements and commencement of shipments are conditional on First Cobalt obtaining the necessary permits and a working capital facility. Offtake discussions, financing and permitting are on schedule, supporting commencement of construction in mid-2021.
The First Cobalt refinery is a hydrometallurgical cobalt refinery located north of Toronto, in the community of Temiskaming Shores. The facility was permitted in 1996 with a nominal throughput of 12t a day and operated intermittently until 2015, producing cobalt, nickel and silver products.
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