Cobalt in focus: what is Queensland’s potential?

Several companies are currently looking into the revival of cobalt’s production in Queensland from different ore types, using new innovative approaches. What are these ores and their potential? Will Queensland, once again, become a significant producer of this essential to modern technologies metal? Artem Golev is lead economist with the Geological Survey of Queensland. His article below plats the strands of growing demand, Queensland's position in the supply chain and the challenges in realising this potential. Brief market overview Over the last 20 years, global mine production of cobalt increased more than four times, reaching 165 kt in 2021, with market value of US$8 billion. This growth is expected to continue in the next 20-30 years, driven by demand for cobalt alloys and compounds in different green technologies. In particular, NMC (nickel-manganese-cobalt) lithium-ion batteries have the highest energy density among all commercially available batteries, being mainly employed in electric vehicles. Geological Survey of Queensland lead economist Artem Golev While cobalt is not as rare as some other critical and precious metals, it mainly occurs in disseminated form, associated with other (primary) minerals rather than forming its own minerals (and/or deposits). Currently, cobalt is mainly sourced as a by-product from processing of copper (around 70% of global production) and nickel ores (30%). Consequently, it can be challenging to make a business case for increasing cobalt production without considering the outlook of the major minerals. Democratic Republic of Congo (DRC) heavily dominates the global supply of cobalt, accounting for about 70% of global production. This has raised serious concerns not just around the security of supply but also in relation to the responsible and ethical sourcing of this metal. DRC’s copper ores are the world’s largest known mineral resource for cobalt, with one of the highest known cobalt grades – up to 1%, with an estimated average of 0.4%. Outside DRC, cobalt is mainly produced from nickel laterites and nickel-copper (-platinum group elements) sulphide deposits, with a weighted (by production volumes) average grade of about 0.1%. In comparison, Queensland’s known mineral occurrences for cobalt have an average grade of only 0.05%, or 500 ppm. Cobalt resources in Queensland Ore containing cobalt There is no current production of cobalt in Queensland. However, historically, small amounts of cobalt were produced at Mount Cobalt Mine from 1921 to 1934, and by Mount Isa Mines until 2005. Mining at the Greenvale mine (1974-1993) and Brolga (1993-1995) was the major source of nickel laterite ores for the Yabulu nickel refinery near Townsville, which produced both nickel and cobalt. However, the refinery relied solely on imported, higher-grade ores from New Caledonia, from 1995 until the refinery ceased production in 2016. The potential sources for cobalt in Queensland can be grouped into four main categories, as summarised in the table below. Copper ores, including accumulated mine waste from past operations, account for about 80% of all known mineral occurrences for cobalt in Queensland. While the average cobalt grade in these deposits is only around 0.05%, previous industry trials and academic research have demonstrated that this can be upgraded up to 1% when recovered into a pyrite concentrate. Cobalt in the ore is mainly associated with pyrite, including at Queensland’s largest copper producers such as Mount Isa Mines and Evolution (Ernest Henry). Using this pyrite concentrate as a starting input material for further processing could significantly improve the economics of cobalt recovery, e.g. by allowing transportation and processing of these concentrates at a central facility. For comparison, with current metal prices, 1% of cobalt is an equivalent of 7% copper or 9 g/t gold in the ore or concentrate, worth about AUD 700 (metal value) per tonne of ore or concentrate. Cobalt (co-)recovery from copper ores At present, it is estimated that there is at least 10 kt of cobalt content in the copper tailings generated in Queensland every year. At today’s cobalt prices, that would be worth about AUD 800 million. This is significant given that Australia’s total cobalt production in 2021 was 5.3 kt (mainly in Western Australia), making Australia the third-largest producer of cobalt in the world after DRC. If there were a way to recover some of that cobalt lost to tailings (and associated with pyrite), this could make Queensland one of the major (responsible) supply sources of this important metal. Pyrite is an iron sulphide mineral. It is typically considered a gangue mineral (i.e. having no economic value), and a major source of acid mine drainage at mine waste facilities. Thus, it is often recommended to remove pyrite from tailings before disposal, to ensure the long-term geochemical stability of the tailings, minimise any contaminated seepage, and potentially allow for a cost-efficient rehabilitation at the end of operations. At present, this is rarely the case globally. In Queensland, recent research trials and experiments demonstrated the economic and environmental benefits of such approach, e.g. at Mount Isa Mines, but this is yet to be accepted by the industry. Additional economic benefits from ‘depyritization’ of tailings, such as cobalt recovery, could support a wider introduction of this approach. A new technology for the recovery of cobalt from pyrite was recently demonstrated by Cobalt Blue Holdings Ltd, aiming to develop the Broken Hill Cobalt pyrite deposit in South Australia. In this case, cobalt content in the ore is about 0.07%, but cobalt content in pyrite is 0.5% (and 0.45% in the recovered pyrite concentrate). The process also allows the recovery of elemental sulphur, which can be used in sulphuric acid production and agricultural applications. Cobalt Blue is currently involved in the recovery of cobalt from copper mine tailings in the Mount Isa and Cloncurry regions, in partnership with the University of Queensland, as part of collaborative project funded by the Queensland Government. There may still be some challenges to overcome in this project, one of the important to mention is potential concentration of arsenic (highly toxic metal) in the waste and/or by-products from the process. The first results from the trials are expected as early as later this year. There is also an international interest in this area. In 2021, JOGMEG (Japan Oil, Gas and Metals National Corporation), Queensland’s Department of Resources and the University of Queensland started a joint research project on cobalt recovery from copper mine waste at Mount Isa. The results from the processing tests, conducted in Japan, are currently under assessment and review. Conclusion Potential benefits from cobalt (co-)recovery can be much greater than just adding another metal to Queensland’s new economy minerals portfolio. If ‘cobalt from pyrite’ technology proves successful, it could support and sustain copper production (as a by-product, cobalt would add additional 10-20% of value), including improving the feasibility of lower grade ores processing. In addition, it can contribute to meeting growing demand for sulphur (and sulphuric acid), and uncover more efficient and sustainable practices in tailings management and mined land rehabilitation. The recovery of cobalt from polymetallic and nickel laterite ores also can be important, though relatively small in comparison, unless supplemented by imported ores (as in the case of nickel laterite ores from New Caledonia) and/or directly contributing to the manufacturing of higher value-added products, such as batteries. Known cobalt resources and grades for the largest non-DRC (active) projects versus largest mineral occurrences of cobalt in Queensland. Data sources: S&P Global Market Intelligence, Queensland Department of Resources, companies’ reports and announcements, research reports and publications.Note: cobalt grade in total resources may differ from currently processed grade; cobalt grade is rarely reported for copper mineral occurrences in Queensland and thus many potential deposits may not be reflected in the graph.

Cobalt in focus: what is Queensland’s potential?

Industry Queensland

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