Cobalt Blue Holdings has signed a contract to supply up to 50% of the feedstock requirements for Glencore International’s Kwinana Cobalt Refinery (KCR).
The refinery will be situated on Iwatani Australia’s property in the Kwinana-Rockingham industrial precinct, offering logistical advantages due to its proximity to Fremantle port.
The feedstock agreement, which spans three years, will commence with the start-up of KCR’s commercial operations.
The contract stipulates a minimum supply of 3,750 tonnes (t) of cobalt hydroxide over its term, with pricing linked to Fastmarkets’ indices.
Payments will be made in US dollars, and the terms of performance and termination rights align with standard industry practices.
The feedstock for KCR will come from Glencore’s operations in the Democratic Republic of Congo, the world’s largest cobalt supplier.
Despite Cobalt Blue’s preference for Australian cobalt hydroxide, market dynamics have led to the exploration of international sources to meet the refinery’s needs.
Cobalt Blue CEO Andrew Tong said: “We are thrilled to formalise a relationship with Glencore. Locking in at least 50% of KCR’s feedstock requirements is a significant step in derisking the project that brings us closer to FID [final investment decision].
“Developing a commercial partnership with one of the world’s largest diversified miners helps solidify COB’s [Cobalt Blue Holdings] position as a participant in the global cobalt industry. This relationship will also enable COB to play a strategically important role in building new battery and critical minerals supply chains among like-minded countries.”
The KCR project, developed in partnership with Iwatani Australia, aims to be Australia’s first cobalt sulphate refinery, contributing to the country’s Critical Minerals Strategy.
It is designed to produce battery-grade cobalt sulphate for the precursor cathode active material industry and cobalt metal for industrial and defence applications.
Cobalt Blue and Iwatani Australia signed a pre-FID consortium deed to advance the project towards an FID by 31 December 2025.
Cobalt Blue’s Broken Hill Technology Centre has been piloting the KCR flowsheet since early 2024.
The company has engaged Tetra Tech for engineering works and Green Values for permit applications in Western Australia.
