I always chuckle a bit with these stories, all and any materials which can be economically recycled will be. Gold for example is a massive recycled metal, the mining of it still seems to be attractive.
What's been on my mind since confirmation that Cobalt Blue will build a refinery in Kwinana WA is just how significant this would be for Cobalt Blue. This week top Indonesians are in the US to try to get some form of partial FTA which could allow such things as Cobalt to be supplied into the US EU chain. Problem here is that Indonesia is just about fully dependant on China for refining, any US or EU help is problematic due to this, its a no-goer with China anywhere in that picture.
Cobalt Blues refining in WA could answer some regulatory questions.I am just speculating here, (but long before the refinery location change I had speculated on that too) should Indonesian mined MHP cobalt move from mainland China to mainland Australia to be refined would the US and EU look more favourably? Indonesia is likely to be the worlds number 2 cobalt supplier after the DRC.
As we know the actual tonnage shipped to a refinery for final refining is not massive, in Australia a limited number of truck movements from various WA locations and the main feed from the BHCP where we do have a train line running through our tenements! Indonesia is as easy as a few shipping containers straight into Kwinana, Indonesia has the current issue of being almost totally captive to China, could this open a window to enable them to wean off a single refining option.
We hear "game changer" with regard to some changes so often, IMO a location change for this refinery is just that with implications that could propel Cobalt Blue way beyond where I expected. The battery materials space is so fast moving, delays have implications in this climate, I am hoping and wishing for some early announcement from Cobalt Blue that have found a suitable land site in the Kwinana Strategic Industrial Area, that would make my day and the markets!
Cheers Phil.
COB Price at posting:
38.0¢ Sentiment: Buy Disclosure: Held
