PERTH (miningweekly.com) – Dual-listed Jervois Global has warned of a cost and schedule blow-out at its Idaho Cobalt Operations (ICO), in the US.
The company on Monday told shareholders that while underground mine development and infrastructure construction in the three months to December had advanced well, site construction above ground was significantly impacted between December and mid-January by exceptionally severe winter weather.
The weather compounded acute skilled trade shortages, with the company reporting "significant" productivity loss in mechanical, piping, electrical and instrumentation over a key period up to plant commissioning.
These delays have negatively impacted the $107.5-million construction budget, with a capital expenditure overrun of between 15% and 25% projected. First commercial concentrate production is now expected at the end of the first quarter 2023 and Jervois expects to ramp up to full nameplate capacity across the second quarter of 2023.
At the end of December 2022, cumulative project expenditure was $103.9-million of the prior construction budget.
With final plant commissioning to the RAM deposit ore scheduled to begin at the end of the first quarter 2023, and ramp-up across the second quarter of 2023, Jervois now expects to produce approximately 1 100 t to 1 300 t of cobalt contained in concentrate and 3 000 t to 3 200 t of copper contained in concentrate this calendar year.