Fortune Minerals (TSX: FT) intends to purchase a defunct metal processing plant in Alberta and switch it right into a cobalt refinery.
The corporate says the plant, which it would buy for $5.5 million, will considerably cut back the price of creating its NICO cobalt-gold-bismuth-copper mission within the Northwest Territories.
Fortune has signed an settlement with JFSL Subject Companies to amass the location, northeast of Edmonton, topic to a six-month interval of further due diligence. The hydrometallurgical refinery it plans to construct on the web site would course of concentrates from NICO and produce cobalt sulphate to be used within the manufacturing of lithium-ion batteries.
The JFSL facility is positioned on a 31-hectare brownfields piece of land in Alberta’s Industrial Heartland and adjoining to a CN rail line.
A feasibility study was accomplished for NICO in 2014; Fortune plans to replace key figures from the research to account for growth of the Alberta refinery, price escalations and revised commodity costs. The research outlined an open pit and underground mission with an preliminary capital price of round $600 million, together with $250 million for a refinery.
NICO has obtained environmental evaluation approval and a Kind A water licence wanted to construct and function the mine and concentrator. The current completion of the 97-km Tlicho freeway to the close by group of Whati, alongside with a spur street Fortune plans to construct, will enable for trucking of metallic concentrates from the mine to the rail head at Hay River or Enterprise, N.W.T. From there, the focus can be shipped by rail to the refinery in Alberta. The corporate notes that transport prices will likely be saved low as a result of easy flotation of NICO ores delivers a excessive focus ratio. This may enable the mill feed to be diminished to roughly 4% of the unique mass.
The plan is according to each Canada’s and Alberta’s plans for financial diversification within the West, value-added processing in Canada, and home provide of essential metals.
“Cobalt, lithium and nickel are all minerals with enormous demand within the trendy world,” stated Alberta Premier Jason Kenney in a launch. “Fortune’s new refinery is precisely the kind of job creating, diversifying funding we envisioned with our mineral technique and motion plan.”