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Inquiring minds want to know about Agnico Eagle’s, Vale’s cobalt assets

Cobalt players looking to secure sources of supply in Ontario
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Agnico Eagle's dormant silver-cobalt assets near the Town of Cobalt are generating interest from exploration companies.

Some tire-kickers have been asking Agnico Eagle Mines about their cobalt deposits in northeastern Ontario.

In a Feb. 26 interview with Bloomberg News, CEO Sean Boyd said they’ve been approached by companies inquiring about their extensive and dormant holdings in the legendary silver camp where Agnico Eagle got its start 60 years ago.

Based on that interest, the gold mining company is re-evaluating its former silver-producing properties in the exploration-crazy Cobalt camp to determine its worth.

“We’re open to talking about possibilities around that land package,” Boyd told Bloomberg.

Cobalt was largely discarded by silver miners as a waste by-product. Today, it’s a much sought-after mineral for the electric vehicle revolution.

Boyd said cobalt isn’t a focus for Agnico, who added those properties haven’t been in silver production since 1988.

But the company is overseeing the environmental reclamation efforts in the Cobalt, Ont. camp.

Boyd said they would entertain any offers involving cash and a royalty stream from a company that would take over those environmental obligations.

In Sudbury, Vale is apparently dangling a cobalt deal, according to Franco-Nevada chair Pierre Lassonde.

He confirmed to Bloomberg that the nickel miner is shopping around a streaming deal.

Vale produced 840 tonnes of cobalt last year from its Sudbury operations. It’s shipped and processed at the company’s refinery in Port Colborne.

“The company has no comment on any potential streaming deal for cobalt,” replied Vale spokeswoman Danica Pagnutti in an email.

Lassonde said his company is mildly interested in cobalt opportunities. “We’re going to look at it,” he told Bloomberg.

But he isn’t jumping on the electric vehicle bandwagon just yet.

Lassonde called the adoption curve of cobalt and lithium-based technologies 10 to 20 years out. Only a small fraction of the 60 million vehicles sold globally every year are electric cars, he said.

“This whole thing is way blown out of proportion, as far I’m concerned.”

Franco Nevada, a mine streaming company, is focused on oil royalty deals in the Permian Basin of Texas and Scoop-Stack shale opportunities in Oklahoma.


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