Cobalt 27 buys interest in Ni, Co mine
Battery metals investment company Cobalt 27 completed the acquisition of 8.56pc joint venture interest in the Ramu nickel-cobalt mine in Papua New Guinea.
Cobalt 27 acquired the share from Highlands Pacific Limited, and shares interest in the mine with the Papua New Guinea government, landowners and a Chinese syndicate majority-owned by the Metallurgical Corporation of China (MCC).
Ramu produced 35,355 metric tons (t) of nickel and 3,275t of cobalt last year, an annual record for the operation. The project's total estimated reserves are 1bn lbs of nickel and 100mn lbs of cobalt with an estimated mine life of more than 30 years.
MCC financed and developed the mining venture in Papua New Guinea's Madang province at a price of $2.1bn, with construction completed in 2012. The mine represented the largest overseas Chinese mining investment at the time.
Cobalt 27's ownership interest increases to 11.3pc if the company repays Highland's attributable construction and development loans.
The company owns 2,905t of physical cobalt inventory warehoused at facilities in Baltimore, Antwerp and Rotterdam, according to its website.
Cobalt 27's streaming interest in Vale's cobalt mine in Voisey Bay, Canada, begins in 2021, while other nickel and cobalt royalty interests are either construction-ready or in exploration stages.