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Highlights
- Cobalt Blue and Iwatani ink deal for Kwinana Cobalt Refinery.
- Project aims to strengthen Australia’s battery supply chain.
- Name change to Core Blue Minerals on the horizon.
Australia is a step closer to establishing its first cobalt sulphate refinery following a key agreement between Cobalt Blue Holdings Ltd (ASX:COB) and Iwatani Australia. The two companies have entered into a binding pre-Final Investment Decision (FID) Consortium Deed to progress development of the Kwinana Cobalt Refinery (KCR) in Western Australia.
This proposed facility is designed to produce up to 3,000 tonnes annually of high-purity battery-grade cobalt sulphate or metal in its first phase. As the country’s first of its kind, KCR is positioned to become a cornerstone in Australia’s efforts to add value to its critical minerals and strengthen its role in the global battery materials supply chain.
The partnership outlines the steps each party will undertake to seek approval from their respective boards before proceeding to a final decision. If greenlit, the KCR will address a crucial gap in Australia’s domestic supply of refined cobalt and support the electric vehicle (EV) and energy storage markets with a reliable source of critical input material.
Since initiating collaboration in December 2023, both parties have successfully completed technical due diligence and progressed commercial discussions with feedstock suppliers and potential offtake partners. Several conditions are set to be met before an FID is reached, including production of customer-grade cobalt sample material using pilot-scale facilities at Cobalt Blue’s Broken Hill Technology Centre.
Other requirements involve finalisation of technical studies, securing supply and offtake agreements, establishing intellectual property licensing terms, and arranging project financing. Approval from Australia’s Foreign Investment Review Board will also be a key regulatory hurdle to clear.
KCR aligns with Cobalt Blue’s environmental, social and governance (ESG) framework, designed to meet international standards and ensure responsible development. The project is also expected to contribute meaningfully to Australia's Critical Minerals Strategy, which seeks to create new value-added industries based on critical resources.
In a strategic shift, Cobalt Blue has proposed a name change to Core Blue Minerals Ltd to reflect a broader focus beyond cobalt. This comes as part of an earn-in agreement with AuKing Mining Ltd (ASX:AKN) for the Halls Creek Project in northern Western Australia — a site rich in copper, lead, zinc, silver, and gold, with additional cobalt potential.
The agreement leverages Cobalt Blue’s engineering and project development expertise and opens the door for a more diversified portfolio as the company evolves within the critical minerals sector.
