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- Jervois (JRV) suspends final construction at its Idaho Cobalt Operations (ICO) in the United States due to falling cobalt prices and inflationary pressures
- The company insists this is the appropriate measure to “prudently preserve” the value of ICO’s ore body
- According to Jervois, ICO is the largest and highest-grade confirmed cobalt orebody in the US and, when commissioned, will represent the country’s only primary cobalt mine supply
- The company says its ICO work will recommence once cobalt prices rise again, which JRV expects over the medium term
- Shares in JRV are tumbling 28.7 per cent to 8.2 cents at 11:04 am AEDT
Jervois (JRV) has suspended final construction efforts at its Idaho Cobalt Operations (ICO) in the United States due to falling cobalt prices and inflationary pressures.
The company insisted the decision was made to “prudently preserve” the value of ICO’s ore body, which JRV said was the largest and highest-grade confirmed cobalt orebody in the US. When commissioned, ICO will represent the country’s only primary cobalt mine supply.
Jervois said not mining ICO cobalt at “cyclically” low prices was in the best interests of shareholders and key stakeholders, including local communities and the State of Idaho.
The company said work would recommence once cobalt prices rose again, which it expected over the medium term due to the energy transition, as well as the company’s expectation that buyers would prefer to buy from sources with Western ESG credentials, such as its ICO.
Meanwhile, Jervois announced it had applied for US Government grant monies to accelerate drilling in a bid to increase ICO’s mineral resource and reserve and for studies to assess the construction of a cobalt refinery in the States. The company can work towards both of these goals as planned regardless of ICO’s suspension.
Jervois said it would begin an “orderly and rapid demobilisation” of workers from the ICO site, which it expected to complete in the weeks ahead.
The mine component of ICO’s construction has been completed, with a successful start to underground stoping and more than 30,000 short tons of ore ready for processing.
Shares in JRV were tumbling 28.7 per cent to 8.2 cents at 11:04 am AEDT.
