What is the Broken Hill Cobalt Project?
The Broken Hill Cobalt Project stands as one of Australia's most significant cobalt resources, strategically positioned in New South Wales. Currently owned by Cobalt Blue Holdings (which plans to rebrand as Core Blue Minerals), this landmark project aims to establish Australia as a key competitor in the global cobalt supply chain—reducing dependence on the Democratic Republic of Congo, which currently controls approximately 70% of global cobalt production.
Unlike most cobalt operations worldwide that extract the metal as a byproduct of copper or nickel mining, the Broken Hill cobalt project in Australia is distinctive as a primary cobalt project. This focused approach targets three principal deposits—Pyrite Hill, Big Hill, and Railway—which contain substantial cobaltiferous pyrite resources with a combined reserve of 71.8 million tonnes at 710 parts per million cobalt.
The project's significance extends beyond its size—it represents Australia's strategic push toward securing critical minerals transition and reducing reliance on geopolitically complex supply regions.
Project Location and Significance
Situated in the historically mineral-rich region of Broken Hill in New South Wales, the project benefits from well-established infrastructure including power, water, and transportation networks. This advantageous location within Australia's stable mining jurisdiction provides significant investor confidence and operational security compared to alternative cobalt sources.
The site's proximity to existing mining infrastructure reduces development costs while offering access to skilled labor from the historic Broken Hill mining community. This combination of geological opportunity and logistical advantages positions the project favorably as global demand for battery metals continues its upward trajectory, driven primarily by electric vehicle manufacturing and grid-scale energy storage systems.
How Has the Project Evolved?
The Broken Hill Cobalt Project has undergone significant optimization since its initial conception. The most substantial improvements came in the 2020 updated feasibility study, which delivered impressive enhancements over the original 2018 prefeasibility study (PFS).
The 2020 study documented several crucial advances that strengthened the project's economic fundamentals:
- Ore reserves increased by 55%: From 46.3 million tonnes at 819 parts per million (ppm) cobalt to 71.8 million tonnes at 710 ppm cobalt
- Production target expanded significantly: From 58.7 million tonnes to 98 million tonnes
- Contained cobalt resource growth: From 47,000 tonnes to 67,000 tonnes—a critical 42.5% increase
- Project life extension: From 13 years to a more substantial 18 years of operational activity
- Annual production capacity optimization: Average production expected to reach between 3,500-3,600 tonnes of cobalt per year
- Capital expenditure reduction: Preproduction capital requirements decreased by A$70 million to approximately A$560 million
These enhancements were achieved through a combination of additional drilling, geological remodeling, and processing optimizations. The mine plan now includes an increased front-end mining capacity from 5.25 million tonnes per annum to 6.3 million tonnes per annum, creating more efficient economies of scale.
Technical Improvements
Beyond the quantitative improvements, the project has benefited from several technical advancements:
- Enhanced recovery rates through optimized processing circuits
- Improved concentrate grades resulting from metallurgical testing
- Refined waste management strategies to reduce environmental impact
- More efficient site layout design minimizing operational bottlenecks
These technical refinements, validated through extensive testing and third-party review, have collectively transformed the project's economic profile while maintaining its focus on sustainable extraction practices.
What Mining Methods Will Be Used?
Multi-Openpit Mining Approach
The Broken Hill project has designed a multi-openpit mining scenario that leverages conventional extraction methods optimized for the specific geological conditions of the cobaltiferous pyrite deposits.
The mining operation will employ:
- Traditional extraction techniques: Standard drill-and-blast methodology to fragment the ore body, followed by load-and-haul operations using modern mining equipment
- Purpose-selected equipment fleet: Modern excavators matched with rigid body trucks sized appropriately for the scale of operation, supported by auxiliary equipment including dozers, graders, and water carts
- Optimized processing capacity: The operation is designed to handle up to 6.3 million tonnes of ore annually—a significant increase from earlier designs
- Efficient materials handling: Ore will be transported to a centralized stockpile area strategically located near the processing facility to minimize haulage distances
- Environmental waste management: Waste material will be transported to engineered emplacements situated in close proximity to each pit, reducing haulage costs while enabling progressive rehabilitation
This conventional approach was selected after evaluating alternative mining methods, including underground options, but open-pit mining proved most economically viable given the deposit's characteristics and relatively shallow depth.
Processing Innovation
Once mined, the ore will undergo a proprietary processing method developed specifically for the cobaltiferous pyrite mineralization found at Broken Hill. This approach differs from traditional cobalt extraction techniques used in copper-cobalt or nickel-cobalt operations, as it must address the unique challenges of extracting cobalt from pyrite minerals.
The process involves:
- Conventional crushing and grinding
- Beneficiation through froth flotation to produce a pyrite concentrate
- Pressure oxidation to liberate cobalt from the pyrite matrix
- Precipitation and refining to produce high-purity cobalt products
This processing route has been extensively tested and refined through pilot plant operations, demonstrating both technical feasibility and commercial viability at scale.
What is the Project's Current Status?
Major Project Status Extension
In a significant regulatory development, Cobalt Blue Holdings has secured a three-year extension to the project's Major Project Status—an important recognition originally granted by the Australian Commonwealth Government in March 2022. This extension provides:
- Continued access to the Major Project Facilitation Agency's coordination services
- Streamlined regulatory pathways and designated contact points within government
- Enhanced visibility with international investors and strategic partners
- Recognition of the project's alignment with national economic priorities
Cobalt Blue Holdings' CEO Andrew Tong emphasized the significance of this extension, describing it as "an important enabler for our project development plans," particularly for advancing investment discussions with potential offshore and local partners.
"The extension of Major Project Status provides crucial momentum as we progress toward final investment decision and demonstrates the government's continued recognition of cobalt as a critical mineral essential to Australia's economic future," said Tong.
Strategic Partnership with Iwatani
The project has made substantial progress in securing strategic partnerships, most notably with Japanese industrial conglomerate Iwatani Corporation. This partnership represents a significant vote of confidence from an established international player in the energy transition space.
Iwatani Australia's Managing Director Naomasa Ueda highlighted the significance of the government's continued support, stating that the Major Project Status extension "strengthens the case for progressing the refinery towards a final investment decision." This statement suggests Iwatani's involvement may be particularly focused on the downstream processing and refining aspects of the project.
The Iwatani partnership aligns with a broader trend of Japanese companies securing stakes in critical mineral projects globally to support Japan's battery and automotive industries.
Corporate Rebranding Initiative
In February 2025, Cobalt Blue Holdings announced its intention to seek shareholder approval to change its corporate name to Core Blue Minerals. This rebranding reflects:
- A potential broadening of the company's strategic focus beyond cobalt alone
- Recognition of evolving battery material requirements in global markets
- Positioning for potential expansion into other critical minerals
The name change proposal will be put to shareholders at an upcoming general meeting, with implementation expected in mid-2025 if approved.
What is the Project Timeline?
The Broken Hill Cobalt Project is advancing toward commissioning, which is expected in 2025—a timeline that aligns with projected increases in global cobalt demand driven by electric vehicle production growth.
Key project milestones include:
- 2020: Updated feasibility study completed
- 2022: Received initial Major Project Status
- 2023-2024: Detailed engineering and financing activities
- 2025: Target commissioning of mining and processing operations
- 2025-2043: Projected 18-year operational life
The recent extension of Major Project Status provides additional momentum and government support during this critical development phase, potentially accelerating regulatory approvals necessary for construction commencement.
Economic Projections
Financial modeling for the project demonstrates robust economics with a pretax net present value (NPV) of A$770 million at a 7.5% discount rate. This valuation reflects:
- The expanded 18-year operational life
- Annual production of 3,500-3,600 tonnes of cobalt
- Capital expenditure requirements of approximately A$560 million
- Market projections for cobalt demand growth in battery applications
These financial metrics position the project as a significant investment opportunity in Australia's critical minerals sector, with potential for substantial returns over its operational lifetime.
Note: Financial projections are based on feasibility study estimates and are subject to change based on market conditions, final engineering designs, and actual operational performance.
Why is the Broken Hill Project Important?
Strategic Significance
The Broken Hill cobalt project in Australia holds exceptional importance within Australia's resources landscape and the global critical minerals supply chain for several compelling reasons:
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Supply chain diversification: The project directly addresses concerns about concentrated cobalt supply from the Democratic Republic of Congo (DRC), which currently accounts for approximately 70% of global production. This concentration presents geopolitical and ethical supply risks for manufacturers.
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Ethical sourcing advantage: Unlike some operations in the DRC which face ongoing scrutiny regarding labor practices and environmental standards, the Broken Hill project operates within Australia's stringent regulatory framework, offering a responsibly-sourced alternative for ethical supply chains.
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Economic development: The project will create substantial investment and employment opportunities in regional New South Wales, providing both direct jobs at the mine site and indirect employment through support services and supply chains.
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Strategic alignment: The development perfectly aligns with Australia's critical minerals reserve strategy, which aims to move the country up the value chain in battery materials—transforming Australia from a raw materials exporter to a producer of higher-value refined products.
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Clean energy transition enabler: By securing a stable cobalt supply, the project supports global efforts to transition toward electric vehicles and renewable energy storage systems, which require substantial quantities of battery materials.
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Technological innovation: The project implements advanced processing technology specifically designed to extract cobalt from pyrite deposits, demonstrating Australia's mining industry innovation capabilities.
As battery manufacturers and electric vehicle producers increasingly seek secure, transparent, and ethical cobalt supplies, the Broken Hill project is positioned to become a preferred source in global supply chains. This strategic positioning becomes even more valuable as major automotive manufacturers commit to electric vehicle production targets requiring substantial increases in battery material supply.
Industrial Integration Potential
Beyond its immediate resource value, the Broken Hill project offers potential for downstream integration with Australia's emerging battery materials industry. This vertical integration opportunity could include:
- Precursor production: Converting cobalt into battery precursor materials
- Cathode active material manufacturing: Further processing into components ready for battery cell production
- Recycling integration: Creating closed-loop systems for cobalt recovery from spent batteries
These integration possibilities align with broader government initiatives to capture more value from Australia's mineral resources through domestic processing and manufacturing.
What Are the Economic Implications?
The Broken Hill Cobalt Project represents a significant economic opportunity with multi-faceted benefits extending from local communities to national strategic interests.
Project Economics
With a projected 18-year operating life and annual production of 3,500-3,600 tonnes of cobalt, the Broken Hill project demonstrates substantial long-term economic potential:
- Capital investment: Approximately A$560 million in initial capital expenditure
- Project valuation: Pretax NPV of A$770 million (at 7.5% discount rate)
- Operational expenditure: Creates ongoing economic activity through local procurement and services
- Export revenue: Generates significant export earnings through international sales of cobalt products
Employment and Community Benefits
While specific job creation figures have not been officially released, mining projects of this scale typically generate:
- Construction phase: 400-600 jobs during the 2-3 year construction period
- Operational phase: 200-300 direct full-time positions during the 18-year mine life
- Indirect employment: An additional 600-900 jobs in supporting industries and supply chains
- Skills development: Training and upskilling opportunities for local workforce
- Community investment: Infrastructure improvements and community development programs
Supply Chain Impact
Beyond direct economic metrics, the project carries significant implications for Australia's position in global battery supply chains:
- Value addition: Moving beyond raw material exports to higher-value processed products
- Industrial capability: Building domestic expertise in critical mineral processing
- Supply security: Providing manufacturers with confidence in long-term supply arrangements
- Price stability: Potentially reducing price volatility through diversification of global supply
Investment Considerations
For investors considering the cobalt sector, the Broken Hill project offers several distinctive advantages:
- Jurisdictional security: Australia's stable mining regulations reduce political risk
- ESG compliance: Strong environmental and social governance frameworks
- Market timing: Development timeline aligned with projected cobalt demand growth
- Technical de-risking: Extensive feasibility work reducing operational uncertainty
Disclaimer: Investment decisions should be based on comprehensive due diligence. While the project demonstrates promising economics, all mining ventures carry inherent risks including commodity price fluctuations, operational challenges, and potential timeline delays.
Future Outlook and Challenges
The successful development of the Broken Hill Cobalt Project faces both opportunities and challenges as it progresses toward production:
Market Opportunities
- Expanding electric vehicle production globally creating sustained cobalt demand
- Battery manufacturers seeking supply chain diversification beyond the DRC
- Potential premium pricing for ethically-sourced cobalt meeting ESG requirements
- Growing strategic mineral partnerships between Australia and key manufacturing nations
Development Challenges
- Securing final financing package in competitive capital markets
- Managing construction costs in an inflationary environment
- Navigating evolving battery chemistry trends that could impact cobalt demand
- Building workforce capacity in a tight Australian mining labor market
Despite these challenges, the project's strong fundamentals, government support through Major Project Status, and strategic partnerships position it favorably as Australia's flagship cobalt development with national significance for the Halls Creek cobalt expansion and the implementation of modern mine planning in the critical minerals sector.
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