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Glencore And First Cobalt Plan Refinery Restart

Kitco News

Glencore and First Cobalt completed a term sheet on the steps to recommission a cobalt refinery in Ontario.

Terms of the deal were announced on Tuesday. Glencore will loan First Cobalt $5 million for engineering work and delivery of a feasibility study. By 2020, the companies foresee a feed rate of 12 tonnes per day and ramping up to 55 tpd the subsequent year.

Glencore's total capital investment will be $45 million to be repaid by First Cobalts refining agreement.

"Transitioning to cash flow as a North American refiner is our primary focus and today’s news demonstrates that we are moving closer to achieving that objective. Glencore has been supportive throughout the process and we look forward to working closely with their technical team on a successful execution," said Trent Mell, First Cobalt Chief Executive Officer in a statement.

"An operating refinery in North America can benefit all North American cobalt projects, as it significantly reduces the capital cost of putting a new mine into production."

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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