- 01COB signs non-binding Kwinana cobalt offtake with Swiss STG.
- 02Deal advances refinery FID; Glencore feedstock secured.
- 03Kwinana plans cobalt metal and sulphate output.
Cobalt Blue Holdings (ASX: COB) has signed a non-binding term sheet with Swiss metals and commodity trading company STG Metals GmbH for the sale of standard-grade cobalt rounds produced at its planned refinery in Western Australia.
The proposed offtake represents a substantial contribution towards Cobalt Blue’s share of the Kwinana cobalt refinery’s (KCR) overall offtake requirement, providing an early sales channel as cobalt sulphate produced at the refinery is qualified for battery markets.
While the proposed commercial terms are non-binding and subject to the execution of a definitive offtake agreement, both parties have entered into binding obligations regarding the conduct of negotiations and the commitment of resources toward finalising the deal.
The term sheet advances KCR’s commercial pathway towards a final investment decision (FID) alongside secured feedstock, permitting and product qualification activities, complementing a cobalt hydroxide feedstock arrangement with Glencore secured in mid-2025.
KCR Joint Development
Cobalt Blue and partner Iwatani Australia (IWA) are jointly developing the KCR to produce standard-grade cobalt metal rounds (>99.8% cobalt) and cobalt sulphate heptahydrate from a flexible feedstock base, including material sourced under the Glencore agreement.
The refinery will be built at a brownfields industrial site in East Rockingham operated by IWA subsidiary Doral Fused Materials that has existing infrastructure, services, and direct proximity to the Port of Fremantle.
The location in a stable operating jurisdiction with a flexible feedstock strategy positions KCR as a prospective source of refined cobalt products for Western battery, advanced manufacturing, and defence supply chains.
Cobalt Blue’s Broken Hill Technology Centre (BHTC) has successfully produced cobalt metal and cobalt sulphate at pilot scale for potential offtakers, with product quality confirmed against market specifications.
More recently the BHTC evaluated battery black mass as a domestic source of cobalt for the refinery.
Cobalt Offtake Pathway
Chief executive officer Dr Andrew Tong said the term sheet established an offtake pathway for KCR’s cobalt metal product.
“Offtake is a key pillar of our FID process, and this term sheet is a meaningful addition to our commercial framework,” he said.
“Combined with the Glencore binding feedstock agreement and product qualification work at the BHTC, we are continuing to build the commercial foundations required to support the FID."
With the capacity to produce cobalt metal for industrial applications such as magnets and superalloys for aerospace and defence, KCR would be Australia’s first dedicated midstream cobalt sulphate refinery, forming a key part of the nation’s critical minerals development plans.
Get the wire before the market opens.
The ASX small-cap stories that matter, filed before 9am AEST. Curated by the Small Caps desk.