- Jervois Mining (JRV) has purchased the São Miguel Paulista nickel and cobalt refinery (SMP Refinery) in São Paulo for R$125 million (around A$31 million)
- The company purchased SMP Refinery from an investee company of Votorantim, Companhia Brasileira de Alumínio (CBA)
- SMP Refinery has an annual refined production capacity of 25,000 metric tonnes of nickel and 2000 tonnes of cobalt and is currently on care and maintenance
- Jervois will initially lease the SMP Refinery from CBA, providing the company access to undertake a feasibility study for the restart
- On market close, Jervois is up 1.67 per cent and is trading for 30.5 cents per share
Jervois Mining (JRV) has purchased the São Miguel Paulista nickel and cobalt
refinery (SMP Refinery) in São Paulo for R$125 million (around A$31 million).
The company purchased SMP Refinery from an investee company of Votorantim, Companhia Brasileira de Alumínio (CBA).
SMP Refinery has an annual refined production capacity of 25,000 metric tonnes of nickel and 2000 tonnes of cobalt, however, it is currently on care and maintenance.
CBA paused the refinery in 2016, when it also put its Niquelândia mine and processing plant in Brazil on care and maintenance due to prevailing
market conditions at the time.
This acquisition will transform Jervois into a vertically integrated producer when its Idaho Cobalt Operations (ICO) commences production. The company will refine concentrate from its ICO and return cobalt metal to the U.S.
The company will be capable of supplying products to customers across a range of industries – which includes specialty stainless steels, nickel and cobalt superalloys, cathode precursor, lithium-ion battery and electric vehicle manufacturers.
Under the agreement, Jervois will pay the R$125 million (around A$31 million) in tranches, with a R$15 million (approx A$3.7 million) cash deposit by the end of December.
Jervois will initially lease the SMP Refinery from CBA, providing the company access to undertake a Feasibility Study for the restart.
“The Board and Management of Jervois is genuinely excited to be re-entering nickel and cobalt refining and trading, and to be re-establishing previous supplier and customer relationships,” the company told the market.
“Jervois will now progress the funding plan for SMP Refinery transaction and restart in conjunction with the lender negotiations for the completion of ICO construction through first commercial production,” it added.
On market close, Jervois is up 1.67 per cent and is trading for 30.5 cents per share.