Cobalt Blue Holdings Moves Kwinana Refinery toward Final Investment Decision

Cobalt Blue Holdings (ASX: COB) and Iwatani Australia advanced the Kwinana Cobalt Refinery toward a final investment decision (FID) during the June quarter while studies progressed across the Broken Hill cobalt project (BHCP) and Halls Creek project.

The Kwinana refinery program continued producing cobalt sulphate samples for market evaluation, updating engineering work, and pursuing offtake discussions that remain central to project financing.

Cobalt Blue started a pre-feasibility study (PFS) for the BHCP, where the draft environmental impact statement (EIS) is about 80% complete, and expanded metallurgical work aimed at simplifying the Halls Creek development pathway.

The group ended June with A$4.265 million cash after relevant quarterly outgoings of A$1.226m, providing an estimated 3.48 quarters of funding.

Kwinana Work to Support FID

Sample production and assessment continued at the Broken Hill Technology Centre (BHTC) alongside negotiations with prospective buyers of cobalt sulphate and cobalt metal.

Cobalt Blue met potential offtake partners at the Cobalt Institute Congress, although further financing progress remains conditional on satisfactory advancement of commercial agreements.

Engineering work incorporated optimised process parameters from BHTC test work, while vendor engagement sought updated 2026 pricing for the proposed refinery.

“Demand for cobalt continues to grow year-on-year, supported by strong global EV sales and increasing forward demand due to concerns with petrol and diesel pricing,” chief executive officer Andrew Tong said.

“These factors continue to strengthen the commercial outlook for the Kwinana cobalt refinery, which will be the first dedicated cobalt sulphate refinery in Australia [and] remains the company’s highest-priority near-term development opportunity.”

Broken Hill Studies Advance

The BHCP PFS is assessing project scale, capital intensity and staged development options with the objective of defining a starter case offering a minimum 10-year mine life while preserving longer-term scalability.

Concentration test work confirmed positive pyrite recovery from oxide-transition material, supporting potential inclusion of material from the Railway and Big Hill deposits in future mine schedules as SRK Consulting progresses strategic mine planning.

Critical EIS studies covering groundwater, biodiversity, Aboriginal cultural heritage, soils, bushfire, air quality, noise, and agricultural impacts are ongoing, with no material approval constraints identified so far.

A scoping report supporting the Secretary’s Environmental Assessment Requirements is expected to be submitted during the September quarter, although the development application remains subject to satisfactory PFS outcomes.

Recycling Technology Program

Cobalt Blue and the CSIRO are developing a flotation process to recover graphite from battery black mass, which contains about 20% to 40% graphite.

Testing covers thermally treated black mass and residues produced after leaching through Cobalt Blue’s process, with the CSIRO program scheduled to conclude during the September quarter.

The recovered graphite-rich concentrate has not yet been assayed, meaning visual observations cannot determine its concentration, impurities or economic characteristics.

The work could support evaluation of recycled Australian feedstock for Kwinana while broadening the commercial role of BHTC.

Broad Portfolio Options

At Halls Creek, about 870 kilograms of Onedin and Sandiego material was collected to optimise the Stage 1 heap leach flowsheet and test whether both deposits could feed a single operation that may reduce development complexity and improve capital efficiency.

The updated scoping study will also examine silver recovery and is targeted for the fourth quarter of 2026, after which Cobalt Blue intends to progress Halls Creek to a PFS.

Cobalt Blue retained its 51% beneficial interest and exercised its right to earn up to 75% by spending a further A$1.5m on the tenements by 30 June 2028.

For Project Infinity, US refinery location candidates have been shortlisted and bench-scale work has started on polymetallic nodules.