A few months back as a group of holders we tried to evaluate the CAPEX. Cost for water pipeline, 66KV etc were calculated but when it came to the refinery = the main item we basically could not come up with a reliable figure. Blue Ocean came up with the number I see above ( back in January) but what was their basis? In my opinion at that time even COB's mgmt did not really know yet. The new technical partner LGI came on board in March and may have already helped by now with the costing.
It would also not make sense to closely look at numbers from CLQ/ARL etc. Why?
COB is unique : in my research I could not find any other project like it.
First COB's Cobalt is not a Nickel or Copper by product. It is a primary Cobalt project. Except one mine operating in North Africa for the past 90 years, the only other recent primary Cobalt is only going to produce a concentrate and not Cobalt Sulphate, and as a result its CAPEX is not a good indicator.
Second by the time the expensive part of the refining process starts, COB's grade is already 0.4- 0.5% ( Sulphide and not laterite ore ) while other projects start at around 0.1-0.15%.
Third COB's ore does not need the expensive HPAL: The temp required is only 130C ( versus 250) and pressure 5 to 10 Atmosphere ( versus 50 for Ni/ Co laterite)
Fourth ( Elemental) Sulphur will be an income and not a cost.
Because of all the above I believe that the CAPEX will be lower than the other projects involving Nickel or Copper or Gold. But because it is so unique there is no real benchmark. We''ll just have t wait a week or two to find out.
