Glencore will provide cobalt hydroxide feedstock to Cobalt Blue’s Kwinana refinery in Western Australia, which is set to become the country’s first cobalt refinery.
Under the terms of the contract, Glencore will supply Cobalt Blue with up to 50 per cent of Kwinana’s feedstock requirements for a three-year period, taking effect from when the refinery commences commercial operations.
The contract guarantees supply for 3750 tonnes (t) of cobalt hydroxide minimum, with 750t to be delivered in the first year and 1500t in both the second and third year.
The feedstock will be sourced from Kamoto Copper Company, of which Glencore owns 75 per cent, and Mutanda Mining SARL, both located in the Democratic Republic of Congo.
Colbalt Blue chief executive officer Andrew Tong welcomed the contract’s execution, describing it as “a significant step” in de-risking Kwinana and bringing the project closer to a final investment decision (FID), which is targeted for December 31 2025.
“Developing a commercial partnership with one of the world’s largest diversified miners helps solidify Cobalt Blue’s position as a participant in the global cobalt industry,” Tong said.
“This relationship will also enable Cobalt Blue to play a strategically important role in building new battery and critical minerals supply chains among like-minded countries.”
While Cobalt Blue is prioritising Australian cobalt hydroxide feedstock, the company said it is expanding its focus due to “current market dynamics”.
In April, Cobalt Blue signed a binding pre-final investment decision consortium deed with Iwatani Australia to advance Kwinana towards an FID.
Following a positive FID, Cobalt Blue and Iwatani Australia will form an incorporated 70:30 joint venture to build, commission and operate Kwinana.
Kwinana will process critical battery metals from third-party feedstock, like that received from Glencore, and mixed hydroxide precipitate from Cobalt Blue’s Broken Hill cobalt project in New South Wales.