Skip to content

First Cobalt considers refinery restart

First Cobalt announced Oct. 10 that it’s in discussions with “several parties” to obtain an outside supply of feedstock that could help finance the restart of its refinery near the Town of Cobalt.
The First Cobalt Refinery, historically known as the Yukon Refinery, has passed through several hands over the years, and was most recently owned by Swiss-based United Commodity, which went bankrupt several years ago.


First Cobalt announced Oct. 10 that it’s in discussions with “several parties” to obtain an outside supply of feedstock that could help finance the restart of its refinery near the Town of Cobalt.

The Toronto junior miner is evaluating all aspects of how soon to reopen the shuttered operation it purchased in 2017, and position it as a toll milling facility.

How soon it reopens depends on the outcome of talks with suppliers.

The company acquired the 22-year-old facility when it began assembling its sizeable land package of more than 11,700 hectares in the Cobalt camp, which includes 50 former silver mines containing cobalt.

First Cobalt has not made a final decision, but the consultants who costed out the restart and operating estimates, examined the timelines for a permit review, and identified feedstock opportunities, are optimistic, according to the company.

“The First Cobalt refinery is a strategic North American asset and potentially our quickest path to cash flow by producing cobalt materials for the North American market,” said First Cobalt president and CEO Trent Mell.

“The facility is in excellent condition with permits in place and a short timeline to potential production. Future off-take partners may offer flexibility with financing options to minimize dilution as we move forward.”

The facility, located five kilometres east of the Town of Cobalt, includes a refinery building and settling ponds on 40 acres. It’s permitted to expand up to 120 acres.

The facility is a three-circuit hydrometallurgical cobalt-silver-nickel refinery that was commissioned in 1996. Historically, it produced a cobalt carbonate, a nickel carbonate and silver doré.

Placed on care and maintenance in 2015, it is the only permitted refinery in North America capable of extracting cobalt to produce battery-grade material.

The company had been examining different restart scenarios and even an expansion of the refinery.

The capital cost to restart the refinery is US$25.7 million, including a 30 per cent contingency. The annual operating cost is $6.7 million.

A permitting review concluded that a restart is possible within 18 months.

Bringing First Cobalt’s own Ontario properties into production could be years away, so the company wanted to scan the marketplace to gauge their ability to acquire outside feed to get the facility up and running.

“In the short term, what we’re trying to do is find other feed sources so we can start the refinery sooner,” said Mell.
According to Mell, the facility has the physical space to expand, is permitted and can safely treat arsenic from cobalt-mineralized rock and render it inert.

Trying to replicate an operation like that under current permitting regimes, he said, “would take years, if ever.”

The replacement costs of the refinery range from $53 million to $143 million, depending on throughput rates.

“There is an opportunity for us, not just to treat materials from discoveries that we’re chasing in the (Cobalt) camp itself, but also material anywhere in North America,” said Mell.

The company would also like to source feed from its Iron Creek cobalt project in Idaho, which Mell believes has mine potential.

The Ontario Northland rail line is a kilometre away from the refinery.

push icon
Be the first to read breaking stories. Enable push notifications on your device. Disable anytime.
No thanks