Australian firm Jervois Mining has received the board’s clearance for the final construction and development of its 100%-owned Idaho Cobalt Operations (ICO) in the US.
The ICO is located approximately 40km west of the town of Salmon in the east-central region of Idaho.
The approval for the project, which is due to start commercial production in mid-2022, follows a $100m bond offering to finance the construction of ICO.
In a press statement, Jervois said: “Upon satisfaction of the conditions precedent to the release from escrow of the proceeds of the bonds which is expected in Q4 2021, they will be used for the payment of capital expenditures, operating costs and other costs associated with the construction of ICO and bringing it into production.”
Jervois, which acquired ICO in July 2019, selected M3 as the lead engineer for the detailed design and site early works in November 2020.
Scope of work under final construction of ICO includes developing an underground mine over a period of ten months. This is effective from September 2021.
The ICO will include a 1,200 short tonnes of ore per day (stpd) mill and concentrator equipped to produce separated cobalt and copper concentrates.
Jervois plans to process concentrate from the Idaho cobalt operations at its São Miguel Paulista (SMP) refinery, subject to Jervois concluding the SMP acquisition and restarting its operations in stages during 2022 and 2023.
The refined cobalt product from the ICO will be sold to key customers across the US and potentially Europe, Japan and South Korea.
With early works at the site are underway, the firm plans to commence full construction on ICO this September.
Jervois expects the ICO to create 200 jobs during the construction phase and 180 jobs once operational.