PERTH (miningweekly.com) – An independent study into ASX-listed Broken Hill Prospecting’s New South Wales cobalt deposits has identified another commercial opportunity that could deliver revenues of up to A$381.5-million a year, over a 20-year period.
Broken Hill announced on Monday that a detailed business model had identified the possibility of a standalone sulphuric acid project near the Broken Hill deposits, delivering about two-million tonnes a year of sulphuric acid by roasting cobalt-pyrite from the Thackaringa resource.
The sulphuric acid project would require a capital investment of A$768.5-million.
Broken Hill said on Monday that in addition to the revenues generated from the sulphuric acid, the project’s cobalt value would also be considerable given the cobalt contained in the ore.
Based on a cobalt price of $27 450/t, the model estimated that an additional value of between $822-million and $1.3-billion could be ascribed to the contained cobalt within the deposits.
However, future metallurgical studies would be required to determine the cost and recovery parameters of extracting cobalt from the ash residue, following pyrite roasting and acid production.
Broken Hill said that it could be reasonable to assume that between 5 000 t and 6 000 t of cobalt could be produced each year.
“The business model for sulphuric acid production has provided the basis for new commercial opportunities. It has shown that sulphuric acid production using Broken Hill’s cobalt-pyrite ore near Broken Hill can be viable, even without the input of substantial cobalt credit,” said Broken Hill MD Ian Pringle.
He noted that subsequent cobalt recovery could make an important economic contribution to the project.
“Broken Hill is well positioned to take advantage of an increasing local demand for sulphuric acid, which is an essential ingredient for many mineral processing and chemical industries. The company is seeking a partner to help progress the opportunities this unique deposit offers,” Pringle added.