Cobalt Blue Holdings has signed an offtake term sheet with Swiss commodities trader STG Metals for up to 1,000 tonnes of cobalt metal annually from its proposed Kwinana refinery in Western Australia, as the project advances towards financing and a final investment decision.
The proposed three-year agreement covers 500–750 tonnes in the first year, increasing to 800–1,000 tonnes annually in years two and three, with an option to extend. Pricing would be linked to the Fastmarkets standard-grade cobalt benchmark in Rotterdam. The term sheet is non-binding on actual purchases. Neither party is currently obligated to execute the final supply contract, meaning the proposed volumes cannot yet be considered secured sales.
Refinery output and development status
Kwinana is designed to produce approximately 3,000 tonnes of contained cobalt annually, including around 1,000 tonnes of cobalt metal and 2,000 tonnes of cobalt contained in cobalt sulphate.
Cobalt Blue is developing the facility with Japanese industrial partner Iwatani Australia and has a binding feedstock supply arrangement with Glencore. The company has also secured environmental works approval.
Despite these developments, no new debt facility, government construction loan or final investment decision was announced alongside the STG agreement. Converting the term sheet into a binding contract could improve revenue visibility and strengthen the project’s financing case.
European market links
The Swiss trader relationship and Rotterdam-based pricing benchmark could connect Australian cobalt production with European trading and industrial markets. No European battery manufacturer, automotive company or industrial consumer has been named as the ultimate buyer, and physical deliveries to the EU are not guaranteed. Cobalt Blue must still finalise the STG supply contract, complete outstanding commercial arrangements, secure construction financing and reach a final investment decision before the refinery can advance to construction.
