Cobalt is a hard, brittle, silver-gray mineral that is used in a variety of chemical and metallurgical applications. While there are many uses for cobalt, some of the more important applications are when it is alloyed with certain other metals to increase the wear and temperature resistance in metals and also for its ferromagnetic properties. As such, it has applications in the aeronautical industry where parts like jet engine turbines cannot afford to deteriorate under heat and stress; in cutting tools and drill steels where heat and abrasion resistance are inherent to the design, and also in strong permanent magnets were magnetic fields are maintained even at high temperatures. But perhaps most significant to the Geocam project, cobalt is an important component of most rechargeable batteries.
The Geocam Project will produce cobalt, nickel and manganese; all of which are used in making batteries. Most of today’s lithium-ion (Li-ion) batteries contain at least some cobalt, and there are a number of different compositions ranging from about 60% cobalt to those that contain no cobalt at all. Among the fastest-growing segment of Li-ion batteries is the lithium-cobalt-nickel-manganese oxide battery (the last three being exactly the products we will produce) which contains about 15% cobalt. While each element contained in a battery is available for potential substitution, the lightweight, quick-charging, and durability characteristics of the compositions containing cobalt are often compromised by substitution. Consequently, the conventional Li-ion battery is the widest-used product for many portable electronics and coming hybrid and electric vehicles.
According to the Cobalt Development Institute (www.thecdi.com), global demand was around 94,000 metric tons in 2016. Many forecasters expect global demand to be approximately 200,000 metric tons by 2025. Our mineral concession is the largest known primary cobalt deposit in the world. If the cobalt market behaved like the massive gold or copper markets, we could produce very large volumes of cobalt at very low cost. However, because of the relatively small market appetite for cobalt, we have had to scale our project to balance supply and demand. Our project could supply around 10% of the global cobalt demand, so it is important that we can sell what we produce without over-supplying the marketplace and adversely affecting the cobalt price. Geocam has been in discussions with a number of counter-parties, primarily in the Asian marketplace, who are interested in purchasing some or all of our products.
The cobalt-nickel sulfide product (MSP) we will make is a very high quality product, with no known comparable products in the marketplace. The Nkamouna-Mada MSP is a relatively pure intermediate product, containing about 39% cobalt and 23% nickel, with less than 2% impurities. Most MSP produced from typical high pressure acid leaching of nickel laterites will have a cobalt-to-nickel ratio of around 0.06, whereas the cobalt-to-nickel ratio for Nkamouna-Mada MSP is about 1.7. These unique characteristics of the Nkamouna-Mada MSP have a significant advantage in the marketplace. Samples of MSP have been supplied to a number of potential customers in Asia, most of which are favorably impressed with the quality of the material and the lack of deleterious by-products. Most consumers of intermediate cobalt concentrates are accustomed to a concentrate on the order of 7% contained cobalt and containing a variety of other constituents. The Nkamouna-Mada concentrate, at over 60% cobalt plus nickel, is of considerably higher quality than conventional cobalt concentrate. From the refining perspective, the Nkamouna-Mada MSP will readily redissolve under pressure oxidation leaching conditions, is amenable to conventional solvent extraction technologies for cobalt/nickel separation, and exhibits favorable metal recoveries.
Interest has been expressed by parties having the combined capacity to consume greater than four times the annual quantity of MSP anticipated from the Project. As such, Geocam expects to be successful in selling its high-quality products into the marketplace at good value. We also have the ability to scale-up our project as global demand increases, because Nkamouna-Mada represents the largest known primary cobalt supply in the world, and it is located in a comparatively stable and business-friendly African country.
The Geocam Project will produce cobalt, nickel and manganese; all of which are used in making batteries. Most of today’s lithium-ion (Li-ion) batteries contain at least some cobalt, and there are a number of different compositions ranging from about 60% cobalt to those that contain no cobalt at all. Among the fastest-growing segment of Li-ion batteries is the lithium-cobalt-nickel-manganese oxide battery (the last three being exactly the products we will produce) which contains about 15% cobalt. While each element contained in a battery is available for potential substitution, the lightweight, quick-charging, and durability characteristics of the compositions containing cobalt are often compromised by substitution. Consequently, the conventional Li-ion battery is the widest-used product for many portable electronics and coming hybrid and electric vehicles.
According to the Cobalt Development Institute (www.thecdi.com), global demand was around 94,000 metric tons in 2016. Many forecasters expect global demand to be approximately 200,000 metric tons by 2025. Our mineral concession is the largest known primary cobalt deposit in the world. If the cobalt market behaved like the massive gold or copper markets, we could produce very large volumes of cobalt at very low cost. However, because of the relatively small market appetite for cobalt, we have had to scale our project to balance supply and demand. Our project could supply around 10% of the global cobalt demand, so it is important that we can sell what we produce without over-supplying the marketplace and adversely affecting the cobalt price. Geocam has been in discussions with a number of counter-parties, primarily in the Asian marketplace, who are interested in purchasing some or all of our products.
The cobalt-nickel sulfide product (MSP) we will make is a very high quality product, with no known comparable products in the marketplace. The Nkamouna-Mada MSP is a relatively pure intermediate product, containing about 39% cobalt and 23% nickel, with less than 2% impurities. Most MSP produced from typical high pressure acid leaching of nickel laterites will have a cobalt-to-nickel ratio of around 0.06, whereas the cobalt-to-nickel ratio for Nkamouna-Mada MSP is about 1.7. These unique characteristics of the Nkamouna-Mada MSP have a significant advantage in the marketplace. Samples of MSP have been supplied to a number of potential customers in Asia, most of which are favorably impressed with the quality of the material and the lack of deleterious by-products. Most consumers of intermediate cobalt concentrates are accustomed to a concentrate on the order of 7% contained cobalt and containing a variety of other constituents. The Nkamouna-Mada concentrate, at over 60% cobalt plus nickel, is of considerably higher quality than conventional cobalt concentrate. From the refining perspective, the Nkamouna-Mada MSP will readily redissolve under pressure oxidation leaching conditions, is amenable to conventional solvent extraction technologies for cobalt/nickel separation, and exhibits favorable metal recoveries.
Interest has been expressed by parties having the combined capacity to consume greater than four times the annual quantity of MSP anticipated from the Project. As such, Geocam expects to be successful in selling its high-quality products into the marketplace at good value. We also have the ability to scale-up our project as global demand increases, because Nkamouna-Mada represents the largest known primary cobalt supply in the world, and it is located in a comparatively stable and business-friendly African country.