US Strategic Metals, Glencore enter processing partnership with Chilean Cobalt
US Strategic Metals (USSM) announced Thursday it has entered a partnership with a subsidiary of Glencore (LON: GLEN) and Chilean Cobalt (OTCQB: COBA) (C3) to explore domestic US downstream processing of cobalt and copper intermediate products from C3’s La Cobaltera project in Chile.
In August, USSM was tapped by the Export-Import Bank of the United States for a loan package worth $400 million with a term of 15 years to support the development of its mining and metallurgical project in Missouri.
The company also plans to mine what it considers to be the largest cobalt reserve in North America. It holds an 18-year mineral supply of cobalt (plus nickel and copper) on a 7.3-square-kilometre site, known as the Madison mine project.
C3 announced earlier this summer a letter of intent (LOI) with Glencore regarding an offtake agreement for cobalt and copper intermediate products, as well as a strategic partnership, for its La Cobaltera project in northern Chile.
The announcement adds a processing LOI with USSM that builds upon this, with a three-way strategic partnership aimed at establishing an Americas-centric cobalt supply chain, connecting C3’s La Cobaltera project in Chile with USSM’s integrated critical minerals processing site in Missouri, the company said.
The partnership is expected to strengthen US critical minerals supply chains, USSM said, adding that the partners anticipate the majority or full spectrum of cobalt and copper product stream will be shipped into the US and/or US Free Trade Agreement countries.