- Glencore is set to provide feedstock for refinery resulting in annual production of approximately 2,000-2,500 tonnes per annum cobalt in sulphate
- With the potential to fund capital requirement via a loan to recommission refinery and will enter into agreement with First Cobalt
- Refinery could be operational in 18-24 months with discussions underway to accelerate permit amendment process
First Cobalt Corp and Glencore have struck an agreement to supply cobalt feedstock, agreeing to finance and to recommission the First Cobalt Refinery in Ontario, Canada.
First Cobalt Corp is a Canadian-based cobalt company and the owner of the only authorised primary cobalt refiner in North America. The aim of this new partnership is to restart the Ontario refinery, which could produce 2,500 tonnes of cobalt sulphate or metallic cobalt per year.
“The partnership announced today will help First Cobalt achieve its stated objective of providing ethically-sourced battery grade cobalt for the North American electric vehicle market,” First Cobalt President and Chief Executive Officer, Trent Mell said.
“As the world’s leading producer of cobalt, Glencore is an ideal partner for First Cobalt. Our shareholders will benefit from Glencore financial backing, technical support and opportunities for regional synergies with their Sudbury and Rouyn-Noranda operations,” he said.
The agreement between First Cobalt and Glencore will see both companies producing refined cobalt for the North American market. Glencore will provide First Cobalt with feedstock material, a loan to cover the estimated capital requirements to recommission the Refinery and technical support.
The Refinery has the potential to become the first producer in North America of either high-purity cobalt sulphate for the lithium-ion battery market or cobalt metal for the North American aerospace or military industries.