First Cobalt to produce battery-grade cobalt in Canada by year-end

Canada’s First Cobalt (TSX-V:FCC) said on Monday it expected to begin production of cobalt sulphate late this year or in early 2021, which would make it North America’s only primary producer of the key ingredient for the batteries that power electric vehicles (EVs) and high tech devices.

The Toronto-based company said the expansion of its refinery in Ontario, which is carrying out in partnership with mining and commodities trader giant Glencore (LON:GLEN), would help North America reduce its reliance on China.

The Asian giant practically dominates the supply chain for rechargeable lithium-ion batteries and also count with two of the world’s top producers of the white metal — Tianqi Lithium and Ganfeng Lithium.

“Strong project economics and a growing EV market support the development of North America’s first battery-grade cobalt producer”

First Cobalt

Glencore injected $5 million into First Cobalt’s project last year. It said at the time would invest another $40 million into recommissioning and expanding the refinery, located 600 km from the US border.

The project needs an initial capital of $56 million.

Based on a feasibility study by Ausenco Engineering Canada, if the facility operated at 55 tpd, it could produce 5,000 tonnes a year of cobalt sulphate, equivalent to 1,000 tonnes of cobalt.

By the fourth quarter of 2021, the refinery’s production could reach 5,000 tonnes of cobalt or 25,000 tonnes of cobalt sulphate, which would be a significant proportion of the global refined cobalt market.

Outlook for EVs

“The strong outlook for electric vehicles, the push by automakers to develop shorter supply chains and the projected refinery economics create an excellent opportunity,” the company’s chief executive, Trent Mell, said in Monday’s call conference.

Production costs are estimated at $2.72 a pound, or about $6,000 per tonne. Cobalt metal prices on the London Metal Exchange currently stand at $30,000 a tonne. Cobalt sulphate and hydroxide are typically priced at the discount to the metal.

Canada already has other cobalt refineries, including Sherritt International’s metal facility in Fort Saskatchewan, Alberta, which has been in operations for more than 50 years.

The company ships refined cobalt around the world, except for the US, as the country has kept embargo restrictions on products coming from Cuba – the source of the lateritic ore used by Sherritt to produce mixed sulphides.

First Cobalt’s facility, however, is the only primary cobalt refinery in Canada nd North America.

from MINING.COM https://ift.tt/2Wotfjk