Glencore to supply Kwinana refinery

Cobalt Blue (ASX: COB) has secured a contract for cobalt hydroxide feedstock supply from Glencore for Australia’s first ever cobalt refinery in WA.

Under the terms of the contract, Glencore will supply Cobalt Blue up to 50% of the refinery’s feedstock requirements, a minimum of 3,750t, for a period of three years.

Cobalt Blue chief executive Andrew Tong says the company is thrilled to formalise a relationship with Glencore.

“Locking in at least 50% of Kwinana cobalt refinery’s feedstock requirements is a significant step in derisking the project that brings us closer to final investment decision,” he said.

“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.”

The feedstock will be sourced from Glencore’s Kamoto Copper Company and Mutanda Mining operations in the Democratic Republic of Congo (DRC).

Accounting for 76% of global output, the DRC is the world’s largest supplier of mined cobalt.

Though current market dynamics have required Cobalt Blue to look globally, the company is prioritising the purchase of feedstock from Australian projects and continues discussion with local producers.

“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,” Mr Tong said.

In April the company made a pre-final investment decision deed with its partner, Iwatani Australia, to develop the refinery and an FID is expected by December this year.