Australian miner to buy Brazilian nickel, cobalt assets

Photo: Companhia Brasileira de Alumínio

Australia’s Jervois Mining has unveiled plans to buy nickel and cobalt refinery in Brazil from Companhia Brasileira de Alumínio for BRL 125 million (US$22.2 million) in a bid to transform the company into a producer and refiner of battery metals.

 

The São Miguel Paulista refinery is fitted with an annual production capacity of some 25,000 metric tonnes of nickel, and 2,000 metric tonnes of cobalt, Jervois Mining said in a filing to the Australian Securities Exchange (ASX).

 

The purchase price is to be paid in tranches, with a deposit of BRL 15 million to be paid by the end of December 2020, according to the statement.

 

“Jervois will initially lease SMP Refinery … providing Jervois access to undertake a Feasibility Study … for the restart. Subject to Jervois’ Early Termination Right up to September 2021, the lease shall continue until closing of Jervois’ acquisition of SMP Refinery … which is subject to the satisfaction of usual condition precedents and is expected to occur by December 2021,” the statement said.