Following a positive investment decision, Jervois expects to begin recommissioning activities at its São Miguel Paulista (SMP) electrolytic refinery in January 2026, targeting a 12-month completion period.

The SMP refinery is planned to have a capacity of 10ktpy of refined nickel and 2ktpy of cobalt cathode, with commercial production expected in 2027.

The electrolytic refinery will use mixed hydroxide precipitate (MHP) or mixed sulphide precipitate (MSP) as feedstock—an advantage amidst the tight global supply of cobalt hydroxide under the Democratic Republic of the Congo’s (DRC) new quota system, expected to be in place until at least 2027.

In 2016, Jervois’ SMP refinery was placed under care and maintenance by the previous owner, Votorantim’s subsidiary, Companhia Brasileira de Alumínio (CBA), due to low nickel prices.

Historically, the refinery processed Ni-Co matte and Ni-carbonate from CBA’s Niquelândia mine and third-party feed. This included MHP (from the Ravensthorpe plant in Australia and Goro in New Caledonia) and cobalt hydroxide (from the DRC).

Jervois acquired the refinery from CBA in 2020 and assessed various operating scenarios, including the use of cobalt concentrate and hydroxide from its US-based Idaho Cobalt Operations (ICO).

The integrated refinery was planned to begin commercial production in 2024; however, declining cobalt prices and limited project funding delayed the process, causing Jervois to suspend final construction and concentrator commissioning in June 2023.

SMP’s reopening aligns with improving cobalt prices, supporting the economic viability of resuming operations; in October 2025, cobalt metal prices increased by ~128% y-o-y. The restart also supports Brazil’s National Mining Plan in progress, the “Plano Nacional de Mineração 2050,” prioritising mineral processing beyond raw material extraction. Once operational, SMP could provide a new, refined source outside China, thereby diversifying supply chain security.

The successful restart of Jervois’ electrolytic refinery in 2027 will heavily depend on whether it can secure stable, long-term MHP supply agreements.

From a feedstock perspective, the most likely source of MHP for Jervois would be from Indonesian operations, where output has grown by around 143% y-o-y since 2021; most of these are owned and operated by Chinese companies such as Huayou Cobalt, GEM, and Lygend Group.

MHP production is expected to continue to expand through to 2027, with installed MHP capacity projected to increase by around 140% compared with 2025 levels.

Although Indonesia’s installed MHP capacity is set to expand significantly, most of these producers are integrated downstream, in nickel and cobalt metal production, resulting in a large portion of the MHP market being captive already.

Outside Indonesia, Brazilian Nickel (BRN)’s Piauí Nickel Project (PNP) represents a potential supplier of MHP. However, it is only expected to start full production in the second half of 2029, which is too late to support Jervois’ planned refinery restart in 2027.