Jervois Global to restart São Miguel Paulista refinery

Jervois Global to restart São Miguel Paulista refinery

Jervois has approved a final investment decision (FID) on restarting the nickel and cobalt refinery in São Paulo, Brazil subject to equity raising.

Blue View

Jervois offered the shuttered São Miguel Paulista (SMP) nickel refinery a new lease of life when it acquired the plant for US$22.5M in 2020. Since then, it has continued to advance the restart project following the completion of a BFS in April. This envisaged Stage 1 of the SMP restart to process mixed nickel hydroxide and cobalt hydroxide to produce 10ktpy Ni-in-cathode and 2ktpy Co-in-metal cathode. Jervois is now focused on delivering this first stage and has pushed back first production to Q1 2024. In addition, a further US$10M contingency to the earlier US$55M CAPEX estimate addresses the potential for an escalation to capital costs.

Despite Jervois stating that it remains in discussions for mixed hydroxide precipitate (MHP) and cobalt hydroxide supply contracts, it is still unclear where this feedstock will be sourced from. MHP supply has tightened over recent years owing to rapidly rising demand from third-party nickel sulphate producers, particularly in China, to supply the battery market. This has led to MHP payabilities at approximately 90% of the nickel metal price with the intermediate sold on the open market to refiners for onward processing. Project Blue expects tightness in the MHP market to start to ease with the commissioning and announcement of additional HPAL projects in Indonesia.

  • 14 Nov 2022
  • Brazil
  • Jervois Mining
  • Cobalt
  • Nickel
  • Batteries
  • Steel & Alloys

Like what you read? Subscribe now to get Project Blue's news analysis for free in your inbox every Monday.

Subscribe Now