Broken Hill global cobalt province., page-488

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Cobalt Blue Holdings Ltd enters sulphur agreement with Mitsubishi Corporation, shares jump

12:48 Fri 31 May 2019 John Miller

Cobalt Blue Holdings Ltd ASX:COBOTC:CBBHFCOB aims to supply elemental sulphur, turning powdered sulphur (left) into a high-quality prilled form

Cobalt Blue Holdings Ltd (ASX:COB) has entered into an agreement with Mitsubishi Corporation for market evaluation of elemental sulphur from the Broken Hill Cobalt Project.COB aims to be a new supplier of elemental sulphur, which will provide an additional revenue stream to the primary cobalt sulphate to be produced at the project, previously called the Thackaringa project.The company, which is targeting annual production of up to 4,000 tonnes of cobalt and 300,000 tonnes of elemental sulphur, believes the Mitsubishi agreement will help facilitate its sulphur aims.Investors have responded positively with shares up as much as 78% to an intra-day high of 24 cents.In this Q&A with Proactive Investors, Cobalt Blue’s CEO Joe Kaderavek comments on the sulphur agreement.Proactive Investors: What is the significance of the latest announcement?Joe Kaderavek: Mitsubishi is an active global sulphur market trader. This early stage trial product agreement between COB and Mitsubishi represents a development milestone towards potential future offtake arrangements for elemental sulphur.COB intends to produce up to 100 tonnes of sulphur from bulk test work trials over the next 18 months.Proactive Investors: How important is sulphur to the project?Joe Kaderavek: The Broken Hill Cobalt Project aims to become a globally significant primary cobalt producer. Cobalt sulphate represents approximately 80% of project revenue, with elemental sulphur sales contributing approximately 20% of revenues.Our aim is to produce 300,000 tonnes of elemental sulphur per year.The Australian transcontinental railway passes through the tenements and will allow COB to efficiently freight sulphur to domestic buyers, or export through any of the Spencer Gulf ports surrounding Adelaide, South Australia.COB is working with Enersul (Canada) to turn the powdered sulphur into a high-quality prilled form. This is suitable for long-distance transport and rehandling, without production of excess dust or fine particulates.