Kalkine| ASX 200 Mining Stock Cobalt Blue Moves Toward 2025 Decision After Glencore Agreement

Highlights

• Cobalt Blue Holdings Ltd (ASX:COB), (OTC:CBBHF) secured a cobalt hydroxide supply deal with Glencore

• The Kwinana refinery project is advancing through a series of defined milestones

• Focus remains on financing progress and international stakeholder collaboration

Cobalt Blue Holdings Ltd (ASX:COB), (OTC:CBBHF), a company operating within the critical minerals sector, announced new progress in its Kwinana cobalt refinery development. The update follows a recently signed supply agreement with Glencore International, securing feedstock for its processing facility. This development arrives as the ASX 200 maintains steady interest in energy transition assets and diversified resource projects.

The company noted that the cobalt hydroxide agreement with Glencore would provide feedstock support for the refinery’s production of cobalt sulfate and cobalt metal. These materials are intended for use in battery manufacturing and the superalloy and defence industries.

Key Milestones Identified Before Final Investment Decision

Cobalt Blue outlined that the Glencore agreement represents one of several important milestones in the pathway toward a Final Investment Decision. The planned schedule aims to achieve this decision point by the end of the next calendar year. Other key deliverables ahead include securing offtake arrangements, advancing seed agreements, and obtaining support from debt agencies.

The company continues to structure the project under a joint venture model with Iwatani Corporation, which maintains a minority stake. As the project enters its next development phase, discussions have also progressed in relation to financing channels and institutional engagement.

Domestic Feedstock Strategy Paused Due to Market Factors

Originally, the company had intended to supply the Kwinana refinery using feedstock from its Broken Hill project in Australia. However, following sustained pricing pressures in the global cobalt market, the domestic supply strategy has been paused. In explaining the shift, the company referred to prevailing trends in global production, with a significant portion of cobalt output sourced from the Democratic Republic of Congo.

This strategic change aligns with broader industry patterns, where external sourcing has become a priority to secure consistent raw material flow for refining operations.

Testing Confirms Viability of Glencore Supply

Cobalt Blue confirmed that test processing has been successfully completed on material supplied by Glencore. The demonstration-scale operations at Broken Hill produced both cobalt sulfate and cobalt metal from the supplied sample. The outcomes reinforce the suitability of the feedstock for the Kwinana refinery’s commercial production objectives.

With test processing complete and preliminary logistics frameworks established, the company is now focused on executing the next phase of project implementation, which includes stakeholder engagement in Japan through Iwatani and further dialogues with debt-focused agencies.

Kwinana Refinery Positioned for Strategic Market Segments

The refinery is designed to serve dual-market functions. It will supply cobalt sulfate into the battery segment and cobalt metal into sectors such as superalloys and defence. Although electric vehicle demand trends have fluctuated recently, broader demand for cobalt remains supported by diverse industrial applications.

The company continues to monitor market shifts while developing the project within a structured and milestone-driven framework. The joint venture approach is designed to align stakeholder objectives and support regional supply chain priorities across Asia and Australia.

Cobalt Blue Holdings Ltd (ASX:COB), (OTC:CBBHF) maintains its presence on key indexes relevant to Australian mining and energy transition themes, as developments around the Kwinana refinery remain closely tracked within the ASX 200 and global resource-focused segments.