Jervois suspends final construction at Idaho Cobalt Operations due to low cobalt prices and inflationary pressures
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(Kitco News) - Battery metals producer and developer Jervois Global (TSX-V: JRV) (OTC: JRVMF) today announced its decision to suspend final construction and full concentrator commissioning at its 100%-owned Idaho Cobalt Operations mine (“ICO”) in Idaho due to continuing low cobalt prices and U.S. inflationary impacts on construction costs.
In a statement, the company said it expects cobalt prices to recover over the medium term, including from the influences of the energy transition and the company’s expectation that Western cobalt purchasers will increasingly prefer to buy from sources with Western ESG credentials, such as ICO.
Jervois expects to complete construction of and commission ICO when cobalt prices recover, which it also expects will align with cobalt refining capacity in the U.S. brought into operation by Jervois and/or third parties.
The company added it applied for U.S. Government grant monies to accelerate drilling aimed at increasing ICO mineral resource and reserve, and for studies to assess construction of a cobalt refinery in the U.S.; both can proceed as planned despite ICO’s suspension.
“Jervois is optimistic that it can benefit from recently announced U.S. Government programs to financially support the development of U.S. supply chains of critical minerals including cobalt,” the company said.
“ICO’s mineral resource and reserve is the largest and highest grade confirmed cobalt orebody in the U.S., and when commissioned will represent the country’s only primary cobalt mine supply,” it added.
Jervois is a vertically integrated cobalt development company developing a fully-integrated cobalt value chain, with significant nickel and copper exposure. The company has development stage assets, growth opportunities and exploration projects.
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