Fortune Minerals has secured a $6.3m (£8.59m) grant from the US Department of Defense (DoD) to enhance cobalt production capabilities in North America.
The funding, part of the Defense Production Act (DPA) Title III programme, is aimed at advancing the NICO cobalt-gold-bismuth-copper project in Canada towards construction.
The NICO Project, a critical minerals asset, includes a proposed mine and processing facilities in the Northwest Territories and Alberta.
It is expected to produce an average of 1,800 tonnes (t) of cobalt, 47,000oz of gold, 1,700t of bismuth and 300t of copper annually. This development will establish the NICO Project as a reliable North American source of cobalt sulphate for the burgeoning lithium-ion battery industry.
The DoD grant will support metallurgical testing, secure necessary authorisations and update feasibility studies for the project. Fortune Minerals plans to use the grant to complete key tasks including optimising the hydrometallurgical processes at the Alberta Refinery site.
Funds will also aid in obtaining permits for the construction and operation of both the NICO mine and the refinery. An updated feasibility study will assess the project’s economics, incorporating recent optimisations and the new refinery site.
The company’s goal is to provide vertically integrated production facilities in North America, producing cobalt, bismuth and copper, with over one million ounces of gold as a co-product.
Cobalt sulphate from the NICO Project will also support US electric vehicle manufacturers in qualifying for tax credits under the US Inflation Reduction Act (IRA).
Furthermore, Fortune is working with Rio Tinto to potentially process materials from the Kennecott smelter at the Alberta Refinery. This collaboration is part of the US-Canada Critical Minerals Supply initiative and could increase cobalt and bismuth production.
Additionally, Lomiko Metals has received $8.35m from the US DoD and C$4.9m from Natural Resources Canada for the La Loutre natural flake graphite project in Quebec. The investment marks a significant investment in North American natural flake graphite production. The grant from the US DoD was granted via a technology investment agreement.