That seems a remarkable development if they do in-fact deem...

That seems a remarkable development if they do in-fact deem Australian critical minerals to be the same as US domestics. Even with what we know now, its very positive for Australian critical minerals.

Australia is quite literally a remarkable story of export waves. From early days and the pastoral industries to coal and iron ore and now to critical minerals such as lithium, nickel, cobalt etc forming the latest wave which will bring in decades of foreign exchange. Could future waves appear, it’s likely that they will. We can already see the makings of a wave with hydrogen and its associated industries.

The key has always been, how or even if we could refine substantially in Australia, the answer is a big yes, just look at the WA refining sector, it’s in early formative years but you can see the vast benefits of the economy of scale, a skilled and connected workforce, chemical science and infrastructure, logistics and shipping all in place, a deep water port and a refining district of world significance. Kwinana provides a wonderful opportunity for a wide variety of Australian and regional approved players to supply input.

It is interesting that far more cobalt exists and in better grades in Australian waste tailings than in the whole Thackaringa Pyrite deposit. Of course, it’s the fact that a great deal of cobalt exists in the single Pyrite Hill deposit which makes it viable as a stand-alone mine and plant, just as originally planned.

The current cobalt price and its benchmark mechanism is just about irrelevant IMO at this point in time, funds will be found regardless of what the spot price is at any given time, the Western critical minerals crisis makes this a little different right now, we are a long way from shipping billable product so action needs to get underway.

COB are a listed cobalt player in the IRA story, a Kwinana refinery possibly for both cobalt and nickel could be circa $60m, in a big renewables world that is petty cash. There are lots of other cobalt input options for the refinery, it's possible some material could go through the refinery even before COB’s own cobalt!

I look at this as a mighty potential change which most had never considered. If it takes a couple of years to get this direction right, I don’t care. It’s a fast-moving landscape, one announcement (zero to do with current cobalt price) has the potential to transform COB directly and with velocity. A year ago, it was most certainly not in anyone’s plans, it’s just weird how these things can go, few guarantees that it will all happen, but I think its likely.

Cheers
Phil.