First Cobalt awards refinery contract to Metso Outotec
First Cobalt has awarded the contract for the design and construction of its cobalt sulfate refinery to builders Metso Outotec.
The mining company made the announcement on October 5. It did not provide any details on the value of the contract, nor on the anticipated date for the start of work.
Metso Outotec is a leading global company for the aggregates, minerals processing and metals-refining industries. The company will perform design and manufacturing work for the First Cobalt plant’s solvent-extraction cells, and technical support for the layout of a new solvent extraction plant and its process control.
First Cobalt is aiming to refit its refinery in Northern Ontario to produce cobalt sulfate for the lithium-ion battery market. In so doing, the company would become the only North American producer of refined cobalt for the North American EV market.
Once operational, the refinery is expected to produce 25,000 tonnes of battery-grade cobalt sulfate annually, or more than 5 percent of all cobalt produced around the world. That volume would be enough to supply more than one million electric vehicles annually.
First Cobalt said it received several tenders for its contract, and selected Metso Outotec based on competitive pricing and technical capabilities. The contractor’s proposed solution involves the latest advancements in solvent extraction, and projects an install time of about one third less than conventional processes. The footprint needed for the selected plant equipment is less than conventional solvent extraction equipment.
“We are happy to be moving forward with Metso Outotec,” said First Cobalt President and CEO Trent Mell. “Their expertise and ability to deliver quality projects significantly de-risks our own. We move one step closer to becoming North America’s only provider of cobalt sulfate and we do not intend to stop there. Plans for our Canadian Battery Materials Park also include battery recycling, nickel sulfate production and a partnership with a battery precursor manufacturer.”
In phase 1 of its market strategy, First Cobalt will focus on processing cobalt hydroxide to produce a high-quality, sustainable and traceable battery-grade cobalt sulfate.
The company has secured long-term cobalt hydroxide feed arrangements with Glencore AG and IXM SA, a subsidiary of CMOC in China, to provide a total of 4,500 tonnes of contained cobalt annually.
In March, First Cobalt also signed a flexible, long-term agreement with English company Stratton Metal Resources Limited for the sale of future cobalt sulfate production. Negotiations with automakers and battery suppliers, says the company, are ongoing.
Commissioning of the refinery is targeted for the fourth quarter of 2022, with annual production of 25,000 tonnes of cobalt sulfate forecasted.
Featured image: Exterior image of the First Cobalt refinery. (First Cobalt)