TSX-V-listed First Cobalt is aiming to deliver a definitive feasibility study (DFS) on the expansion of its Ontario refinery to 55 t/d by the first quarter of next year, the company said on Wednesday, announcing several key contracts for the feasibility study work.
First Cobalt appointed Ausenco Engineering Canada to lead in the preparation of a DFS for a refinery restart at 55 t/d with contracts awarded to SGS for advanced metallurgical test work, Knight Piésold for tailings studies and Story Environmental for environmental and permitting aspects of the engineering studies.
Diversified major Glencore, which analysts observe is moving into less risky jurisdictions such as Canada and the US, has made available a $5-million loan to complete advanced engineering, metallurgical testing, field work and permitting associated with a recommissioning and expansion of the refinery.
The Ivan Glasenberg-led group would also be providing technical support throughout the study phase through Sudbury-based affiliate, XPS - Expert Process Solutions.
Upon completion of a positive DFS for a refinery expansion, Glencore would advance a further $40-million to recommission and expand the refinery, which could serve the growing needs of the North American electric vehicle market.
Ausenco, of Toronto, has been retained to prepare various engineering studies in support of restarting and expanding the refinery, located near the town of Cobalt.
Three engineering studies would be completed, which would include an interim scenario for restarting the refinery at its current capacity of 12 t/d in a prefeasibility study, as well as a DFS on expanding the refinery at a throughput of about 55 t/d. First Cobalt said that these two options roughly corresponded to scenarios outlined in a scoping-level study previously completed by Ausenco.
A third study would examine a scenario of first restarting production at 12 t/d and subsequently increasing throughput to 55 t/d. Work related to the tailings management facility for the DFS would be completed by Knight Piésold of North Bay, Ontario.
SGS of Lakefield, Ontario, has been selected to complete advanced metallurgical test work on cobalt hydroxide and a specialty cobalt feed, both supplied by Glencore. First Cobalt previously partnered with SGS to produce a high purity battery-grade cobalt from cobalt hydroxide using the existing First Cobalt refinery flow sheet.
SGS and Ausenco would work collaboratively to further optimise the flow sheet in support of the engineering studies. SGS would also perform the necessary environmental test work on the tailings that result from the process.
Story Environmental of Haileybury, Ontario, would be responsible for the environmental and permitting aspects of all three engineering studies. Story Environmental has been providing environmental consulting services for the refinery since 2008.
First Cobalt said that work would start almost immediately with a field programme at the refinery. The programme would consist of a small crew supplied by Ausenco, who would test and inspect installed equipment and systems to gain a better understanding of the condition of every aspect of the refinery with a view to identifying which components require upgrading or replacement.