Reports related to this article:
Project(s): View 1 related project in PECWeb
Plant(s): View 1 related plant in PECWeb
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Citing low cobalt prices and inflated construction costs, Jervois Global Limited (Cremorne, Australia) has suspended final construction at its Idaho Cobalt Operations (ICO) mine project until prices improve.
Jervois said in a press release ICO's mineral resource and reserve "is the largest and highest-grade confirmed cobalt orebody in the U.S., and when commissioned will represent the country's only primary cobalt mine supply."
The price of the key metal for electric vehicle (EV) batteries has plunged, hitting a 32-month low, according to the Financial Times. The price drop is the result of a surge in supplies, coupled with soft sales of portable electronics globally.
Also, automakers have been working to develop batteries that use less cobalt because of concerns over child labor in the Democratic Republic of Congo, which generates three-quarters of global supply, according to the Financial Times.
Jervois said it "remains confident regarding the medium and longer-term future of cobalt and in the trajectory of structurally higher prices that will be influenced by impacts such as rising cobalt demand from the energy transition including EVs, and the company's expectation that Western cobalt purchasers will increasingly prefer cobalt from sources with Western ESG (environmental, social and governance) credentials, particularly given the concentration of supply from the Democratic Republic of Congo and China."
In the meantime, Jervois said that "not mining ICO cobalt at cyclically low prices, will preserve the optionality and inherent strategic value of ICO for shareholders and key stakeholders including local communities and the State of Idaho."
Located near the appropriately named community of Cobalt, Idaho, the 437,000-ton-per-year cut-and-fill operation would include a 1,200-ton-per-day flotation concentrator to produce cobalt, copper and gold concentrate. The concentrate would be transported to a shuttered refinery in Brazil, which would be restarted to produce 1,915 tons per year of cobalt, 2,900 tons per year of copper and 6,700 ounces per year of gold. Subscribers to Industrial Info's Global Market Intelligence Metals & Minerals project and plant databases can click here for the project report and click here for the plant profile.
Jervois noted that the Department of Defense intends to award the miner with $15 million "to accelerate drilling aimed at increasing ICO mineral resource and reserve, and for studies to assess construction of a cobalt refinery in the U.S.; both can proceed as planned despite ICO's suspension."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
Jervois said in a press release ICO's mineral resource and reserve "is the largest and highest-grade confirmed cobalt orebody in the U.S., and when commissioned will represent the country's only primary cobalt mine supply."
The price of the key metal for electric vehicle (EV) batteries has plunged, hitting a 32-month low, according to the Financial Times. The price drop is the result of a surge in supplies, coupled with soft sales of portable electronics globally.
Also, automakers have been working to develop batteries that use less cobalt because of concerns over child labor in the Democratic Republic of Congo, which generates three-quarters of global supply, according to the Financial Times.
Jervois said it "remains confident regarding the medium and longer-term future of cobalt and in the trajectory of structurally higher prices that will be influenced by impacts such as rising cobalt demand from the energy transition including EVs, and the company's expectation that Western cobalt purchasers will increasingly prefer cobalt from sources with Western ESG (environmental, social and governance) credentials, particularly given the concentration of supply from the Democratic Republic of Congo and China."
In the meantime, Jervois said that "not mining ICO cobalt at cyclically low prices, will preserve the optionality and inherent strategic value of ICO for shareholders and key stakeholders including local communities and the State of Idaho."
Located near the appropriately named community of Cobalt, Idaho, the 437,000-ton-per-year cut-and-fill operation would include a 1,200-ton-per-day flotation concentrator to produce cobalt, copper and gold concentrate. The concentrate would be transported to a shuttered refinery in Brazil, which would be restarted to produce 1,915 tons per year of cobalt, 2,900 tons per year of copper and 6,700 ounces per year of gold. Subscribers to Industrial Info's Global Market Intelligence Metals & Minerals project and plant databases can click here for the project report and click here for the plant profile.
Jervois noted that the Department of Defense intends to award the miner with $15 million "to accelerate drilling aimed at increasing ICO mineral resource and reserve, and for studies to assess construction of a cobalt refinery in the U.S.; both can proceed as planned despite ICO's suspension."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
