North American cobalt company First Cobalt has restored power to its refinery north of Toronto, Canada, and has deployed a team of engineers and technicians to assess the condition of the equipment that has been on care and maintenance since 2015.

The field programme, which will run for the next six weeks, is in support of an ongoing definitive feasibility study (DFS) led by Ausenco Engineering Canada, on a recommissioning and expansion of the existing refinery.

First Cobalt explained on Thursday that the field programme involved temporarily restoring power to the refinery to inspect and test all installed equipment and systems to gain a better understanding of their condition.

The aim would be to identify components that required upgrading or replacement before recommissioning the refinery.

It would allow for a greater level of confidence in the capital cost estimates included in the 55 t/d DFS and would better prepare First Cobalt for a quick recommissioning upon a formal restart decision, the company explained in a statement.

A team of 12 people would be on site to complete the work. The DFS remained on track for completion in the first quarter of 2020.

First Cobalt plans to recommission the refinery at 12 t/d in 2020 and then expand to 55 t/d the following year.

A May 2019 scoping study concluded that the refinery could be expanded from its current 12 t/d throughput capacity to 55 t/d. The study and supporting metallurgical test work estimated that the refinery was capable of producing more than 5 000 t/y of battery-grade cobalt in sulphate for the electric vehicle industry at a capital cost of $37.5-million, which could represent up to 5% of the global market for refined cobalt.

"The refinery was commissioned in 1996 and has been kept in a very good state of repair. This field programme will provide greater confidence on the key components required to recommission the facility, which has been on care and maintenance since 2015,” said First Cobalt VP Peter Campbell.

Swiss-headquartered major Glencore is providing First Cobalt with financial backing to study recommissioning the refinery. Glencore has made available a $5-million loan to complete advanced engineering, metallurgical testing, field work and permitting associated with a recommissioning and expansion of the refinery.

Upon completion of a positive DFS for a 55 t/d refinery expansion and subject to certain other terms and conditions, Glencore would advance an additional $40-million to recommission and expand the refinery.