Jervois Global said today that its Idaho Cobalt Operations (“ICO”) capital project schedule and costing review has led to Jervois Board approving a revised construction budget of US$107.5 million, up from US$99.1 million.
Importantly, Jervois pointed out that the company to commence commissioning ICO mill in September 2022, adding that full production now expected to be achieved in February 2023.
In its press-release, the company explained that the construction of the project has experienced cost pressures due to the significant United States inflationary environment, which has been compounded in recent months due to contractor shortages, continued delays in the operability of an accommodation camp at site, and poor weather conditions across May and June.
Jervois pointed out that the inflationary environment in the US remains heightened and that “…budget has been prudently raised as ICO enters final phase of construction.”
In addition, the company announced that Mercuria US$150.0 million working capital facility drawn down by additional US$25.0 million, to US$100.0 million, underpinned by higher inventory and receivables at Jervois Finland, providing financial flexibility across the Jervois group including for potential funding of development activities in the United States and Brazil.
According to the company’s statement, once in production, ICO will be the only primary cobalt mine in the United States and will supply a critical metal necessary for electric vehicles, energy generation and distribution, defense and other industries.