Cobalt Blue has signed a binding pre-final investment decision consortium deed with Iwatani Australia to advance the Kwinana cobalt refinery in Western Australia.
The agreement outlined the terms in which both companies will progress the Kwinana cobalt refinery towards a final investment decision (FID), which is targeted for December 31 2025.
Such conditions include:
- samples produced by Cobalt Blue meeting customer specifications
- finalising a suite of project related agreements covering joint venture relationships and operational plan, a feedstock supply and offtake and intellectual property licencing
- the completion of technical studies and independent due diligence reviews
- agreeing on a financing plan to cover project funding, including the funding commitments from Cobalt Blue and Iwatani Australia
- Iwatani Australia obtaining approval from the Foreign Investment Review Board.
If a positive FID is made by Cobalt Blue and Iwatani Australia, the Kwinana cobalt refinery is expected to become Australia’s first cobalt refinery, producing high-quality, battery-grade cobalt sulphate for the global battery materials supply chain.
It will process critical battery metals from third-party feedstock and mixed hydroxide precipitate from the Broken Hill cobalt project in New South Wales.
Following a positive FID, Cobalt Blue and Iwatani Australia will also form an incorporated 70:30 joint venture to build, commission and operate the Kwinana cobalt refinery.
“The (Kwinana cobalt refinery) is planned to be a significant enabler for the delivery of Australia’s Critical Minerals Strategy and is uniquely positioned to address the existing significant market gap among Australia’s critical minerals partners,” Cobalt Blue said.
In partnership with consulting and engineering services firm Tetra Tech, 80 per cent of the detailed plant engineering has been completed.