‘Extensions to tiny old mines’.
About 1Mt of ore was mined at Modum between 1778 - 1898. The Cu-Co mineralisation is found disseminated in 100-200m wide zones and can be tracked for 12km along strike, so I wouldn’t classify those mines as especially tiny. On page 24 of the Geological Survey of Norway report titled 'Mineral resources in Norway: potential and strategic importance’ (dated 28/10/16), the authors claim that ‘The Modum area is considered to have potential for cobalt, but this has yet to be adequately documented’. Perhaps, this is because there has been virtually no modern exploration in the area, something BMT plans to rectify.
‘Difficult metallurgy’. ’Arsenic bearing sulphides that make the concentrate more difficult to market’. ‘I would want to know (the) mix of sulphides’.
In terms of the Norweigian Caledonides, the ore minerals are predominantly cobaltite, glaucodot, safflorite, skutterudite, pyrite and chalcopyrite. Keep in mind that there are various methods for removing sulphur and arsenic from cobaltiferous ores. Perhaps, you were referring to an old method, in which roasting the ore produces an arsenious acid (thus making the concentrate more difficult to market). Another method involves oxidizing the ore to reduce the sulphur content, heating the oxidized ore to remove the arsenic and recovering an enriched cobalt product. High-level expertise in metallurgy and mineral processing exists within Norway.
Anyway, we are jumping the gun here. If their exploration program is successful and they manage to exploit the enriched parts of the fahlbands, they wouldn’t process the ore themselves. Most likely a DSO project of unrefined cobalt. Send the ore to a local mill and then ship the concentrate to Freeport Cobalt’s Kokkola refinery in Finland. Not sure how they would play it, however, these smallish projects are able to circumvent the huge capex involved with the bulk mining projects you seem to prefer.
‘(I) reckon (the) bulk of new cobalt demand can be filled by large scale copper cobalt and nickel cobalt deposits’.
How? Are you referring to projects within the DRC? If not, what projects are you referring to? I can’t help but feel that you are either underestimating projected cobalt demand or misunderstanding the inelasticity of cobalt supply. Supply is sticky - it cannot suddenly respond to a rapid increase in demand/ price. This is because almost all of the world's supply of Co is mined as a by-product of Cu & Ni. As such, Co supply is hostage to the price of these commodities, not to the price of Co.
Greenfields projects, especially those in OZ, won’t be able to attract the necessary (huge) funding to work low-grade Ni-Cu laterites at home (even then - we are talking years until production). Those in production can't simply ramp up Ni or Cu production for the Co, with prices of Ni and Cu currently in the toilet. The extraction of the Co from these mixed ores is complicated/ costly - hence the reason it is usually left as waste, instead of being recovered.
IMO, bulk mining of low-grade Co will not be able to satisfy future demand. Thus, the race is on to find supplies of Co that are: in safe (ethically sourced) jurisdictions, of high-grade, close to infrastructure, and can be exploited cheaply. Higher-grade, smaller projects appeal far more to me than the alternative that you believe in.
One final and important point. I would classify BMT's Norweigian projects as brownfield (not greenfield) as cobalt minerals are known to exist there and were mined for 120 years. From a risk perspective, BMT is very attractive - far more so than for greenfields projects, especially those chasing rubbish Down Under.
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