Cobalt Blue (ASX:COB) has built itself a reputation as one of the key players in the global cobalt industry with the progress it has made this year at the Broken Hill Cobalt Project in New South Wales.
The project which is located 25km Broken Hill in the state’s far-west over 3 granted tenements covering 49km-square.
Command and conquer: Cobalt Blue positions for success
The company got off to a strong start in 2022 starting with receiving ‘major project status’ from the Federal Government as it prepared to expand downstream production of cobalt.
Cobalt Blue also managed to side-step the ESG troubles affecting cobalt production in Africa and China such as child-labour.
In April the company leapt at the opportunity following the commitment by the US to work with Australia to ensure supply chain security for new-energy metals including cobalt.
At the time, Cobalt Blue CEO Joe Kaderavek said: “The US is waking up on EVs after a 4-year slumber. We are witnessing a combination of policy changes and strong demand aligned to 2035 environmental and EV sales targets. Similar to the EU, the demand is for high quality, ethically sourced cobalt.”
Wrapping up the first half of the year by finishing up construction on the Broken Hill Demonstration Plant, with ore extraction starting soon after.
Cobalt Blue crushes H2 2022
The primary focus for Cobalt Blue in the second half of 2022 was starting operations at the Pyrite Hill deposit to feed the Demonstration Plant.
The company also focused on developing the Broken Hill Cobalt Project, commissioning the Demonstration Plant in August. It also completed the first phase of gravity separation testwork at the project in October.
In November, Cobalt Blue ramped up output at the Demonstration Plant to test the operational performance ahead of building the full-scale plant in 2023
In November, Cobalt Blue ramped up output at the Demonstration Plant to test the operational performance ahead of building the full-scale plant in 2023.
For the company, December was characterised by high equity raises and ‘high-grade’ concentration results, raising over $22.3 million early in the month.
Cobalt Blue also completed operations supporting the upcoming Definitive Feasibility Study for the Demonstration Plant, processing 4,200 tonnes of ore to produce 680 tonnes of wet concentrate.
The company also reported the first mixed hydroxide precipitate (MHP) is expected later this month, with continuous operation of the leach and MHP circuits planned from January 2023.
Rounding out the year, the Demonstration Plant operations are on track to deliver the initial process plant design criteria for the DFS.
The company states the plant will continue to run through the first half of 2023 to obtain large samples of cobalt and sulphur products for market acceptance.
This will also obtain reliability data for the DFS.
