Tesla Nearology Part 2: Which ASX copper, cobalt, graphite and manganese companies are in the neighbourhood?
W
ho has cobalt project on the cards? Cobalt is produced as a by-product of copper and nickel production and is dominated by Chinese companies operating in the Democratic Republic of the Congo — but it’s been under pressure lately.
Prices for cobalt metal on the LME have fallen from over US$80,000/t early last year to US$34,930/t yesterday.
And these prices drove Jervois Global (ASX:JRV) to hit pause on the commissioning of its Idaho cobalt mine in the USA last year.
But things could be looking up.
As Stockhead’s Josh Chiat points out, the short-term headwinds mask the long-term tailwinds from a) the growth of the electric vehicle industry and b) the US Government’s desire to take it right up to China in a battle where it is sorely outmatched.
That means it’s throwing money left, right and centre at miners to deliver raw materials and onshore manufacturing which presents an opportunity for Jervois to get cozy with the Biden Administration – with the plan to pivot a planned 6000tpa refinery expansion in Finland to the US in a bid for Whitehouse backing.
JRV is currently working through the final documentary steps to formalise a US$15 million grant under the Defense Production Act Title III program the DoD intends to award which is expected to fully fund a Bankable Feasibility Study (BFS) on a US cobalt refinery and proposed drilling program at the Idaho operations.
Tesla Nearology Part 2: Which ASX copper, cobalt, graphite and manganese companies are in the neighbourhood?
Mining