Fortune Minerals Limited (TSX:FT) was featured in an article in Cramer Media’s Mining Weekly regarding the role their Nico cobalt project will play in the cobalt market.
Fortune Minerals Limited (TSX:FT) was featured in an article in Cramer Media’s Mining Weekly regarding the role their Nico cobalt project will play in the growing cobalt market. The Nico project is one of a few cobalt projects situated outside of the Democratic Republic of Congo (DRC) that can help support the near-term demand for cobalt. The project comprises a proposed mine and mill in the Northwest Territories, Canada and a refinery in Saskatchewan, Canada.
The need for cobalt is on the rise due to the interest in electric vehicles (EV). Many governments across the globe are banning the use of internal combustion engines to reduce greenhouse gas emissions and their carbon footprints within the next 20 years. One of the main components in an EV’s lithium-ion battery is cobalt, which is a component in the battery’s cathode.
“This rapid growth is pressuring the supply chain, and analysts forecast that cobalt supplies could fall short of demand in the early 2020s; therefore, securing battery raw materials is of paramount importance,” said Fortune Minerals CEO Robin Goad.
Fortune Minerals has spent over C$130 million to advance the Nico project to meet the demand of the market. The company intends to complete an updated feasibility study in Q1 2019 to help secure funding for the construction of a 6,000-tonne-per-day mill on the property. The project is expected to produce approximately 2,000 tonnes of cobalt annually, and Fortune Minerals is also examining options to sell gold and other metal concentrates. To date, Fortune Minerals has signed 45 confidentiality agreements with various end users interested in securing cobalt from the project.
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