Name of the Project
Kwinana cobalt refinery (KCR).

Location
Kwinana Industrial Zone, about 40 km south of Perth, Western Australia, on the site of Iwatani Australia’s Doral Fused Materials facility.

Project Owner/s
Mining and minerals processing company Cobalt Blue Holdings (COB) in partnership with Iwatani Corporation.

Project Description
KCR is a proposed dedicated cobalt refinery designed to produce standard-grade cobalt metal rounds, with cobalt content exceeding 99.8%, and cobalt sulphate heptahydrate. The refinery will be Australia’s first dedicated cobalt refinery.

Stage 1 capacity is about 3 000 t/y of contained cobalt comprising about 1 000 t/y of cobalt metal and 2 000 t/y of cobalt contained in sulphate. Products are intended for advanced manufacturing, defence and battery applications.

The refinery will use a flexible feedstock base, including material supplied under a binding agreement with Glencore. The brownfield site has existing infrastructure and services, and is close to Fremantle port.

The project provides for expansion to 6 000 t/y of cobalt.

Potential Job Creation
About 50 full-time employees.

Net Present Value/Internal Rate of Return
The project has a reported after-tax net present value of about A$155-million, at an 8% discount rate, and an internal rate of return of about 32%, with a payback of 3.8 years. 

Capital Expenditure
The project has an estimated capital expenditure of about A$60-million to A$80-million. 

Planned Start/End Date
The project is progressing towards a final investment decision. 

Latest Developments
Cobalt Blue announced a term sheet with STG Metals on October 19, 2026, for proposed cobalt metal offtake. Commercial terms remain nonbinding and subject to a definitive agreement; binding provisions cover negotiation conduct and commitment to resources without obliging either party to execute the offtake agreement.

Proposed sales are 500 t to 750 t in the first year and 800 t to 1 000 t/y in years 2 and 3, over three years from commercial operation, with a mutual option for a further three years. 

Conditions include refinery construction and commissioning, product qualification and Cobalt Blue board approval. The proposed longstop date is December 31, 2028, subject to extension or termination; it is not a commissioning target. 

The company has received Western Australian Works Approval to build and operate KCR at the proposed site. Pilot-scale production of cobalt metal and sulphate at the Broken Hill Technology Centre has met market specifications. 

Key Contracts, Suppliers and Consultants
Glencore (binding feedstock supply agreement); STG Metals GmbH (proposed cobalt metal offtaker; definitive agreement pending); and Iwatani Corporation (development partner). 

Contact Details for Project Information
Cobalt Blue Holdings, tel +61 2 8287 0660 or email info@cobaltblueholdings.com.