Australia
Australian
miner Jervois Mining said that it would buy
Finland-based Freeport Cobalt for $160 million in a deal that could
make it the second largest cobalt producer outside China.
The
miner said that the acquisition would be funded through $230.90 million
underwritten equity raising, with Jervois' largest shareholder,
AustralianSuper, committing to invest a significant amount. Geneva-based
commodity trading giant Mercuria is also set to invest up to $40 million as
part of the equity raise, according to Jervois.
Cobalt,
an important mineral used in the manufacturing of electric cars, is mainly
sourced from artisanal miners working in dangerous conditions in the Democratic
Republic of Congo, and major automakers like Tesla have said they are working
towards moving away from the metal's usage for the same reason.
Yet,
the metal remains integral to the manufacturing of electric vehicles. In the
interim, cobalt demand is forecast to double between now and 2030, according to
trade house Trafigura.
The deal comes shortly after a $100 million bond offering by Jervois last week to help fund the construction of its Idaho cobalt operation in the United States, which is slated to start production in mid-2022. Combined with its buy of the Sao Miguel Paulista nickel and cobalt refinery in Brazil, the company said it was potentially on track to become the second largest producer of refined outside China.
Source: ETAuto.com
Image Source: Google Images
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