Jervois Global moves a step closer to São Miguel Paulista refinery restart in Brazil

Jervois Global moves a step closer to São Miguel Paulista refinery restart in Brazil

Jervois Global completes BFS for Stage 1 of São Miguel Paulista Nickel and Cobalt refinery restart to process mixed nickel hydroxide and cobalt hydroxide through to metal.

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Votorantim Group built the São Miguel Paulista (SMP) nickel refinery in 1981.  It operated for more than 30 years, producing nickel and cobalt electrolytic cathode, before it was placed on care and maintenance by Votorantim subsidiary Companhia Brasileira de Alumínio (CBA) in 2016.  The closure was caused by low nickel prices, and the related closure of CBA’s Niquelândia mine, its main source of feedstock.  Jervois bought the operation for US$22.5M in 2020. 

 

The BFS envisages stage one production of 10ktpy Ni cathode and 2ktpy Co metal cathode with stage two ramping up to 25ktpy Ni.  Total CAPEX is put at US$55M.  First commercial production is planned for 2023.  It is not yet clear where feedstock to supply the plant would come from, although Jervois is discussing supply contracts for MHP and cobalt hydroxide.  Historically the refinery processed material from Ravensthorpe and Goro.  Meanwhile, the company is exploring the processing of cobalt concentrates which could be sourced from its Idaho Cobalt Operations once available.

 

The BFS moves Jervois a step closer to being a leading global supplier of responsibly sourced cobalt and nickel.  As well as aforementioned assets in the Americas, the company bought Freeport Cobalt for US$160M in 2021.  In doing so it acquired around 40% of the capacity of the Kokkola refinery in Finland, after certain refining and battery material production lines were acquired by Umicore in 2019.  Refined products from SMP are registered and marketed as the Tocantins brand, which Jervois plans to continue after restarting the facility.