The S&P/ASX 200 Energy Index (ASX: XEJ) was the best performing sector on the ASX today, closing the day 4.89% higher. The S&P/ASX 200 Materials Index (ASX: XMJ) came in second, gaining 2.81%.
The price movements come as global commodity prices climb amid conflict between Russia, Ukraine and the rest of the world.
Against that backdrop, an Aussie cobalt developer has received government support for its project in New South Wales.
At market close, the Cobalt Blue Holdings Ltd (ASX: COB) share price was up 20.65% to 55.5 cents. In comparison, the broader ASX All Ordinaries Index (ASX: XAO) was up 0.21%.
So, what’s going on with this ASX mining share?
Renewable energy project receives Government support
Cobalt Blue’s Broken Hill Cobalt Project (BHCP) was awarded “Major Project Status” by the Australian government today — a move that will support the development of the project over three years.
The project aims to produce “high quality, battery ready cobalt sulphate” for renewable energy solutions.
The company says the project has the potential to be “one of the largest cobalt producers in the world” and has the attention of “more than 30 of the world’s largest battery manufacturers”.
Cobalt Blue said the government grant gives “formal recognition of the national economic implications of the BHCP through its contribution to growth, productivity, government revenue, industry and regional development”.
Further, the company said the project was “the only large scale, ex African, Greenfield primary cobalt project globally”.
Critical minerals projects such as BHCP are integral components of The Australian Critical Minerals Strategy and Australia’s Long Term Emissions Plan as well as aligning with national security and interests to bolster geopolitical stability and building sovereign capability in the sector.
Project to position Australia as ‘number 2 cobalt producer’
Commenting on the development, Cobalt Blue CEO Joe Kaderavek said:
Granting Major Project Status to the Broken Hill Cobalt Project will greatly assist COB to raise development capital by recognising the strategic importance given to this Project by The Australian Government.
This milestone is particularly important for overseas partners and well timed in our development journey.
COB can now boast both Made in Australia and Backed by Australia.
Cobalt Blue share price snapshot
Over the last 12 months, this ASX mining share has increased 37% in value.
It’s also risen more than 12% this year to date.
The company has a current market capitalisation of around $170 million.
The post This ASX mining share rocketed 21% today. Here’s why appeared first on The Motley Fool Australia.
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Motley Fool contributor Alice de Bruin has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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