Jervois Global: Chinese Overproduction Strands U.S. Cobalt Mine in 37-Day Cross-Border Deal

Jervois Global Limited—operator of the only cobalt mine in the United States—mothballed the Idaho Cobalt Operations facility weeks before it was set to open in early 2023, laying off approximately 250 workers as cobalt prices fell 72% from their April 2022 peak. The company had not turned a profit in seven years.

Cobalt is essential for lithium-ion batteries powering electric vehicles and energy storage systems, as well as high-temperature alloys used in military aerospace applications. China provides three-quarters of global refined cobalt, and the Pentagon provided a $15 million grant to Jervois under Defense Production Act Title III authorities—funding that survived the bankruptcy.

Market conditions shifted quickly. When China's CMOC Group opened major copper-cobalt mining operations in the Democratic Republic of Congo in 2023, global cobalt production surged to all-time highs. CMOC doubled its cobalt output to 114,165 tonnes in 2024, contributing to oversupply as prices fell below $10 per pound by early 2025—their lowest since 2015.

Millstreet Capital Management, which had loaned $125 million for the Idaho project and other operations, converted its debt to equity in a prepackaged chapter 11 confirmed in 37 days. The transaction—coordinated with Australian voluntary administration—wiped out shareholders and took the company private.

Company Background

Jervois Global Limited, formerly known as Jervois Mining Limited, was incorporated in 1962 and is headquartered in Cremorne, Victoria, Australia. The company changed its name to Jervois Global Limited in August 2021 as it expanded from an Australian explorer to a multinational cobalt and nickel producer. Jervois traded on the Australian Securities Exchange under ticker JRV and on the TSX Venture Exchange as JRV.V, positioning itself as a leading global supplier of responsibly sourced cobalt and nickel materials serving defense, battery, and chemical markets.

Prior to bankruptcy, Jervois operated across four continents with a multinational footprint:

The chapter 11 filing included eight debtor entities spanning the United States, Australia, Finland, and Japan in a cross-border restructuring.

Idaho Cobalt Operations: America's Only Cobalt Mine.

Idaho Cobalt Operations holds the largest and highest-grade confirmed cobalt orebody in the United States. The site was the only domestic cobalt mine capable of production within months, and the U.S. imports virtually all of its cobalt, predominantly through Chinese-controlled refining channels.

Jervois acquired the Idaho property and advanced it toward production, bringing the project within weeks of opening in early 2023. However, the company suspended final construction in late March 2023, laying off approximately 250 workers. The suspension was attributed to continuing low cobalt prices and U.S. inflationary impacts on construction costs. Management indicated the mine would likely remain mothballed until prices reached at least $20 per pound—roughly double the early 2025 levels.

In June 2023, the U.S. Department of Defense entered a $15 million agreement with Jervois Mining USA under Defense Production Act Title III authorities. The funding, appropriated through the Additional Ukraine Supplemental Appropriations Act, enabled mineral resource drilling to expand cobalt resources at ICO and the adjacent Sunrise deposit. Jervois completed 2,500 meters of targeted resource expansion drilling under the DoD agreement.

Cobalt is a component of multiple munitions and high-temperature aerospace alloys used by the Department of Defense, as well as high-capacity batteries for military and commercial electric vehicles. The only domestic source remained mothballed while the Pentagon funding continued.

Finland and Brazil Operations.

Finland cobalt refinery. In 2021, Jervois acquired Freeport Cobalt—a cobalt refining and specialty products business based in Kokkola, Finland—for $160 million. The transaction was intended to transform Jervois into the second-largest producer of refined cobalt outside China. The Kokkola facility, which had produced cobalt products since 1968, provided immediate refining capacity while Idaho was under development. Jervois Finland received a EUR 12 million grant from Business Finland for potential expansion that would have increased annual refinery capacity from 6,250 metric tonnes to at least 12,250 metric tonnes of refined cobalt. The company held a capacity sharing agreement with Umicore for the refinery until 2093.

Brazil refinery. Jervois purchased the São Miguel Paulista nickel and cobalt refinery in São Paulo, Brazil from Companhia Brasileira de Alumínio (a Votorantim subsidiary) in 2020. The facility—Latin America's only electrolytic class 1 nickel and cobalt refinery—had been on care and maintenance since 2016. Originally designed and constructed by Outotec, the refinery began operations in 1981 and produced the established "Tocantins" nickel and cobalt metal brand. Restart projections envisioned production of 10,000 mtpa nickel metal and 2,000 mtpa cobalt metal.

Path to Financial Distress

Chinese Overproduction and the Cobalt Price Collapse.

Jervois's distress trajectory began when China's CMOC Group opened major copper-cobalt mining operations in the Democratic Republic of Congo in 2023. CMOC produced 114,165 tonnes of cobalt in 2024, up from 55,526 tonnes in 2023—more than doubling year-over-year output. CMOC became the world's largest cobalt producer, running two major copper-cobalt mines in the DRC that flooded global markets with supply.

Cobalt prices fell 72% from their April 2022 peak. Between May 2022 and May 2025, prices fell 59.5%, from $41 to approximately $16.62 per pound. By early 2025, prices fell below $10 per pound—their lowest level since 2015.

Global mine production more than doubled from 140,000 metric tons in 2020 to 290,000 metric tons in 2024. DRC annual output alone rose from 175,000 metric tons in 2023 to 220,000 metric tons in 2024. CMOC's Tenke Fungurume mine benefits from cobalt ore grades of 0.25% colocated within the world's fourth-largest copper deposit—enabling byproduct production economics that Western standalone cobalt miners cannot match.

Electric vehicle sales failed to meet forecasts that had supported cobalt price projections. Despite demand growth of 6-8% in 2024 (largely driven by energy applications such as EVs, battery storage, renewables, and grid networks), persistent oversupply from DRC producers outpaced consumption increases. The energy sector accounted for 85% of total demand growth for battery metals over the past two years, but supply growth outpaced demand.

At the time of the bankruptcy filing, Jervois had not turned a profit in seven years. The company blamed poor market conditions on Chinese overproduction.

Stock Collapse and Debt Burden.

Jervois shares fell 99% from their 2022 peak.

The company accumulated approximately $195.5 million in funded debt, including $100 million borrowed from Millstreet Capital for the Idaho project and $25 million in additional corporate debt. As operating losses mounted, the debt became unsustainable.

AustralianSuper, one of Australia's largest pension funds, saw its holdings surge to around 400 million shares, but the value fell from approximately A$170 million to A$6 million as the stock declined.

Investors filed lawsuits claiming Jervois misled them by failing to adequately disclose risks associated with complex bond deals. Allegations suggested the company transferred increasing control to Millstreet between 2022 and 2024 without shareholder approval, including rights over Brazilian and Finnish operations.

The Prepackaged Restructuring

Restructuring Support Agreement.

Jervois negotiated a Restructuring Support Agreement (RSA) with its lenders on December 31, 2024, establishing the framework for the prepackaged chapter 11 filing. The RSA was amended and restated on January 28, 2025—the petition date. FTI Consulting served as financial advisor in the negotiations.

Under the RSA, existing secured lenders Millstreet Capital Management LLC and PenderFund Capital Management Ltd. agreed to take the company private, converting their approximately $125 million in loans to equity and injecting $145 million in new capital. Millstreet, a Boston-based SEC-registered investment adviser founded in 2010, invests in opportunistic and event-driven high-yield situations with stressed, distressed, restructuring, and post-reorganization experience. The fund's capabilities range from new issue origination to secondary performing credit.

Chapter 11 Filing and Plan Structure.

On January 28, 2025, Jervois Texas, LLC and seven affiliated debtors filed voluntary chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of Texas. The debtors filed the prepackaged Chapter 11 Plan and Disclosure Statement on the first day, having solicited votes prepetition.

The multinational debtor structure included eight entities across four jurisdictions:

DIP financing. Millstreet Capital Management provided senior-secured superpriority DIP financing to fund the chapter 11 process. The DIP loans were paid in full in cash on the Effective Date, with Millstreet receiving a 1.4% commitment premium in New Equity Interests (subject to management incentive plan dilution). The Final DIP Order was entered on March 3, 2025, authorizing the debtors to obtain senior secured priming superpriority postpetition financing and use cash collateral with adequate protection for prepetition lenders.

Plan treatment. The confirmed plan provided for:

• $145 million new equity infusion from Millstreet and PenderFund
• Funded debt reduced from $195.5 million to approximately $31.6 million
• Complete shareholder wipeout—all existing equity cancelled without distribution
• New Equity Interests issued to DIP lenders and new money investors
• Formation of new intermediate holding company structure
• Administrative and DIP claims paid in full in cash

Cross-Border Coordination: The Australian DOCA.

Sidley Austin characterized the restructuring as "one of the first cross-border Australian take-private transactions through prepackaged Chapter 11 coupled with Australian DOCA"—a Deed of Company Arrangement under Australian insolvency law.

Following the confirmation date, Australian entities entered voluntary administration to implement the DOCA. KPMG was appointed as liquidator for certain Australian Jervois entities.

Under Australian law, a DOCA is a binding arrangement between a company and creditors governing how the company's affairs will be dealt with. A DOCA is agreed to after a company enters voluntary administration, with the purpose of maximizing chances of the company continuing or providing a better return than liquidation. For DOCA approval, a majority in both number and value of creditors voting must vote in favor. Critically, a DOCA binds all unsecured creditors, including those who voted against it—similar to the cramdown provisions available under U.S. bankruptcy law.

Jervois Global Limited was approved for removal from the Australian Securities Exchange effective June 30, 2025. All shares were cancelled on the Effective Date, with shareholders not entitled to receive any distribution.

Confirmation and Objections

37-Day Confirmation Timeline.

The case proceeded from petition (January 28) to Confirmation Order (March 6) in 37 days. The timeline reflected the prepackaged nature of the deal, with votes solicited and tabulated before filing.

The first day hearing secured complex case treatment, conditional approval of the disclosure statement, automatic stay enforcement, NOL procedures, and interim authorization for continued cash management, utilities, insurance, wages/benefits, customer programs, and accounts payable.

Plan Objections.

Three parties objected to plan confirmation, though all objections were ultimately resolved or overruled.

U.S. Trustee objection. The U.S. Trustee filed a plan objection on February 28, 2025, raising standard concerns about plan compliance with Bankruptcy Code requirements. The objection was resolved before confirmation.

Shareholder objection. Binvid Pty., Ltd. and Kadoo Pty., Limited, Australian shareholders, filed an objection on February 28, 2025 challenging the case's speed and U.S. ties. The objectors questioned whether the Texas venue was appropriate for an Australian-listed company and argued that shareholders were being unfairly wiped out. The court overruled the shareholder objection, finding sufficient nexus to support Texas venue. The objecting shareholders subsequently appealed but withdrew their appeal before resolution.

Trisura surety objection. Trisura Guarantee Insurance Company, which had issued reclamation bonds for the debtors' mining operations, filed an objection on March 3, 2025. Mining operations typically require reclamation bonds ensuring environmental remediation—a potentially significant liability that required resolution before confirmation. The matter was ultimately resolved via stipulation regarding assumption of reclamation bond obligations, approved May 1, 2025.

Shareholder Appeal and Withdrawal.

Shareholders Binvid Pty. Ltd. and Kadoo Pty., Limited filed a Notice of Appeal on March 20, 2025, seeking to challenge the Confirmation Order. They also filed a Motion to Stay Pending Appeal on March 23, 2025, seeking to halt plan implementation while the appeal proceeded.

However, on April 2, 2025, the shareholders filed a Motion to Withdraw their Appeal. The court granted the withdrawal on April 24, 2025, allowing the restructuring to proceed without appellate delay. An Amended Motion to Withdraw the Notice of Appeal was granted on May 8, 2025—one day before the Effective Date.

Post-Confirmation Developments

Ongoing Shareholder Complaints.

Following the Effective Date, numerous Australian shareholders filed letters with the court expressing concerns about treatment of shareholders by Jervois and Millstreet Capital Management:

The letters alleged inadequate disclosure of debt terms, improper transfer of control to Millstreet without shareholder approval, and unfair treatment of Australian retail investors.

The Motion for Final Decree filed May 22, 2025 remains pending as shareholder objections and extension requests continue to be filed. Post-Confirmation Reports for the quarter ended June 30, 2025 were filed for each of the eight debtor entities in July 2025.

Emergence and New Ownership.

The Plan became effective on May 9, 2025, with Millstreet Capital Management and PenderFund Capital Management taking the company private. Jervois emerged as a privately held company with:

• $145 million new equity capital to fund operations
• Substantially reduced debt load (~$31.6 million vs. ~$195.5 million prepetition)
• Finnish refining operations continuing
• Idaho mine remaining mothballed pending price recovery
• Brazilian refinery available for potential restart

The company emerged as privately held following the Effective Date.

Industry Context: Critical Minerals and Cobalt Markets

Chinese Dominance in Global Cobalt.

According to the International Energy Agency, China provides three-quarters of global refined cobalt—a concentration that increased over the past four years. Geographic concentration of refining increased across nearly all critical minerals, with the average market share of the top three refining nations rising from 82% in 2020 to 86% in 2024.

The Democratic Republic of Congo dominates cobalt mining, with high-grade deposits enabling byproduct production alongside copper. CMOC's operations at Tenke Fungurume benefit from ore grades of 0.25% while colocated within the world's fourth-largest copper deposit.

U.S. dependence on imported cobalt—with no domestic mine in operation—continues while cobalt remains a component of munitions, aerospace alloys, and military electric vehicles.

Market Stabilization Efforts.

In February 2025, the Democratic Republic of Congo implemented an export suspension that was expected to last four months. By September 2025, the country's mining authority ARECOMS announced a shift to a quota system effective October 16, 2025, limiting exports to approximately 18,000 tons for the remainder of 2025 and a maximum 96,600 tons annually for 2026 and 2027.

Analysts have proposed additional stabilizing mechanisms such as price floors for strategic minerals to protect domestic production capacity. The CSIS analysis argued that allowing the sole U.S. cobalt source to remain mothballed undermines minerals security.

Professional Retentions and Fees

Debtors' Professionals.

Sidley Austin characterized the restructuring as a "novel" cross-border transaction, highlighting the coordination between U.S. chapter 11 and Australian DOCA proceedings required to implement the take-private.

Fee Applications.

All retained professionals filed final fee applications following the Effective Date:

Key Timeline

Frequently Asked Questions

What is Jervois Global and why is the bankruptcy significant?

Jervois Global Limited operated the only cobalt mine in the United States (Idaho Cobalt Operations) and held cobalt refining operations in Finland. The bankruptcy occurred while China provides three-quarters of global refined cobalt.

Why did Jervois file for bankruptcy?

Chinese output increases—particularly CMOC Group doubling its cobalt output to 114,165 tonnes in 2024—coincided with cobalt prices falling 72% from April 2022 peaks. Jervois mothballed its Idaho mine in March 2023 and had not turned a profit in seven years before filing.

What happened to the Pentagon's $15 million grant?

The DoD grant under Defense Production Act Title III authorities survived the bankruptcy and will continue funding mineral resource expansion at Idaho Cobalt Operations and adjacent deposits. The grant was appropriated through the Additional Ukraine Supplemental Appropriations Act.

Who acquired Jervois and on what terms?

Millstreet Capital Management LLC and PenderFund Capital Management Ltd.—existing secured lenders—converted approximately $125 million in loans to equity and injected $145 million in new capital, taking the company private. Funded debt was reduced from approximately $195.5 million to approximately $31.6 million.

How fast was the confirmation?

The case proceeded from petition (January 28, 2025) to confirmation (March 6, 2025) in 37 days for a multinational restructuring spanning four jurisdictions with eight debtor entities.

What happened to shareholders?

All existing shareholders were completely wiped out without any distribution. Jervois shares had fallen 99% from their 2022 peak before the restructuring. The company was delisted from the ASX effective June 30, 2025.

How did the Australian proceedings coordinate with U.S. chapter 11?

The restructuring combined U.S. prepackaged chapter 11 with Australian voluntary administration and a Deed of Company Arrangement (DOCA)—described as one of the first such cross-border take-private transactions. KPMG was appointed as liquidator for certain Australian entities.

What objections were raised to the plan?

The U.S. Trustee, Australian shareholders (Binvid and Kadoo), and Trisura Guarantee Insurance (reclamation bond surety) all objected. Shareholders challenged the case's speed and Texas venue, but objections were resolved or overruled. The shareholder appeal was subsequently withdrawn.

What is the status of Idaho Cobalt Operations?

The mine remains mothballed and will likely stay idle until cobalt prices reach at least $20 per pound. The site represents the largest and highest-grade confirmed cobalt orebody in the United States.

What is Millstreet Capital Management?

Millstreet is a Boston-based SEC-registered investment adviser founded in 2010, specializing in opportunistic and event-driven high-yield investments with deep distressed and restructuring experience. The firm invested in Jervois through the initial Idaho project financing before taking control through the bankruptcy.

Who is the claims agent for Jervois Global?

Stretto, Inc. serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.

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For additional coverage of critical minerals and mining industry restructurings, visit the ElevenFlo bankruptcy blog.