Glencore And First Cobalt Plan Refinery Restart
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."