Targeting Mid-2021 Idaho Cobalt Operations Start-Up
Jervois Mining Limited (ASX: JRV) (TSX-V: JRV) has confirmed it is participating in financing discussions with the United States federal government to complete construction of its Idaho Cobalt Operations (ICO) mine.
Jervois acquired ICO as a partially complete mining operation in 2019 and expects to complete construction of the project to commence cobalt production next year.
Jervois has submitted specific proposals and is negotiating to finalise the form of final applications to various arms of the U.S. government. These include the Department of Defense, pursuant to the Defense Production Act Title III Expansion of Domestic Production Capability and Capacity funding opportunity, the US International Development Finance Corporation, the US government’s development finance institution (and which has been granted a domestic mandate due to Covid-19), and the Department of Energy.
Jervois proposes a debt guarantee or loan would be in the U.S. national interest since the U.S. government included cobalt on a list of critical minerals developed by it pursuant to the Executive Order, “A Federal Strategy to Ensure Secure and Reliable Supplies of Critical Minerals” dated December 17, 2017.
Jervois is exploring funding for ICO singularly or combined with its São Miguel Paulista (SMP) refinery in Brazil.
ICO commercial concentrate production continues to be expected from mid-2022 and SMP. A restart is expected the same year, all as part of Jervois’ plan to become a vertically integrated speciality nickel and cobalt producer
ICO will be the only cobalt mine in the United States once in production
Independent of the potential availability of U.S. government financial support, Jervois continues to advance private debt financing for ICO, which is forecast to commence production in mid-2022. ICO will be the only cobalt mine in the US once it starts production.
