Cobalt Blue Holdings Ltd (ASX:COB) is teaming with the Mount Isa City Council (MICC) to address an imminent shortage of sulphuric acid caused by the shutdown of a local copper smelter.
A Memorandum of Understanding between the two parties sets out a framework for Cobalt Blue to advise the Mount Isa council on the requirements, challenges, and barriers to a potential pyrite tailings re-processing operation to produce sulphuric acid.
This is based on the company’s development of minerals processing technology for the treatment of pyrite, which also allows for the potential economic recovery of other elements such as sulphur and metals from pyrite deposits.
The future shortage of sulphuric acid in northern Queensland has been anticipated since Glencore said it would be closing the Mount Isa copper smelter in 2030.
It is crucial for the region to have a plan in the place for this, given the vital role of this material for industries such as the fertiliser, metallurgical, and chemical sectors.
Mayor of Mount Isa Peta MacRae said the arrangement brought together the region’s needs and the company’s achievements with this technology.
“This MOU with Cobalt Blue aligns with Council’s commitment to a sustainable future for
our industries, economy, environment, and communities,” she said.
“It demonstrates our commitment to developing a locally made solution to the looming sulphuric acid shortage that will otherwise have a huge negative impact on many of our largest industries.
“Mount Isa already has expertise in the production of sulphuric acid and has existing air monitoring systems in place to ensure community safety. Cobalt Blue’s technology solves the issue of dealing with old tailings as well as reinforcing the economics of the supply chain for the whole of Australia.”
At 2:51pm Sydney time today, Cobalt Blue shares were trading at 7.2 cents – a rise of 5.88% since the market opened.
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