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Kwinana cobalt refinery, Australia

6th December 2024

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Kwinana cobalt refinery (KCR).

Location
Kwinana Industrial Area, located 30 km from the Perth metropolitan area, in Western Australia.

Project Owner/s
Cobalt Blue Holdings.

Project Description
KCR is a proposed cobalt/nickel facility representing Australia’s first cobalt sulphate refinery that will produce high-quality, battery-grade cobalt sulphate in response to the US Inflation Reduction Act, and EU markets. The refinery will process critical battery metals from third-party feedstock and mixed hydroxide precipitate from the Broken Hill cobalt project.

The project will be developed in stages. Stage 1 capacity is set at 3 000 t/y of cobalt 
(as cobalt sulphate) and about 500 t/y of nickel (as nickel metal). Stage 2 will double cobalt refining capacity.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Stage 1 has an after-tax net present value (NPV) of A$90-million and an internal rate of return (IRR) of 23%, with a project payback of 5.2 years.

With the Stage 2 expansion, the project could return an incremental after-tax NPV of A$105-million and an IRR of 64%. Stage 1 and 2 combined results in an after-tax NPV of about A$175-million and an internal rate of return of 29%, generating earnings before interest, taxes, depreciation and amortisation of about A$46-million a year.

Capital Expenditure
Capital costs for Stage 1 are estimated at A$60-million. Stage 2 is estimated at A$23-million.

Planned Start/End Date
Stage 1 construction is expected to start in the first half of 2025, with completion expected within 12 months. Stage 2 is expected to take 12 months to build during 2028 and be operational from 2029. Stage 1 and 2 combined has an estimated capital expenditure of A$83-million.

Latest Developments
None stated.

Key Contracts, Suppliers and Consultants
Not disclosed.

Contact Details for Project Information
Cobalt Blue Holdings, tel +61 2 8287 0660 or email info@cobaltblueholdings.com.
 

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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