Australian miner Jervois Mining has reached an agreement to acquire Finland-based Freeport Cobalt in a deal valued at approximately A$217 million.
Freeport Cobalt is an industry leading business that has produced cobalt products for key markets since 1968. It is strategically located in Kokkola Finland in a competitive industrial park, close to key markets.
In 2019, the Freeport Cobalt business was split out from the refinery and battery materials operations which were sold to Umicore.
Freeport Cobalt retained contractual rights to approximately 40% of the Kokkola refinery capacity and ownership of downstream advanced materials processing capabilities.
Jervois said the acquisition has the potential to transform the company into the second largest producer of refined cobalt outside China.
“The Acquisition is expected to transform Jervois into a global, vertically integrated cobalt and nickel company of scale, led by a highly experienced management team,” the company said in a statement.
“Post-acquisition, Jervois will be diversified across multiple products and value chain segments with significant relevance to leading cobalt producers and end-users.
“Jervois’ acquisition of Freeport Cobalt also provides the Company with an established global market platform from which to operate.
“The industrial logic and strategic rationale for the acquisition is compelling, with value for Jervois shareholders expected to be created through technical and commercial synergies with ICO and SMP operations.”
The transaction is expected to close at the end of August 2021.