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In work published Nov. 26 in the international edition of the chemistry journal Angewandte Chemie, Los Alamos National Laboratory scientists report the possibility of replacing the normally used noble metal catalysts with cobalt.

Catalysts are the parallel of the Philosopher's Stone for chemistry. They cannot change lead to gold, but they do transform one chemical substance into another while remaining unchanged themselves. Perhaps the most familiar example of catalysis comes from automobile exhaust systems that change toxic fumes into more benign gases, but catalysts are also integral to thousands of industrial, synthetic, and renewable energy processes where they accelerate or optimize a mind-boggling array of chemical reactions. It's not an exaggeration to say that without catalysts, there would be no modern industry.

But a drawback to catalysts is that the most effective ones tend to be literally precious. They are the noble metal elements such as platinum, palladium, rhodium, and ruthenium, which are a prohibitively expensive resource when required in large quantities. In the absence of a genuine Philosopher's Stone, they could also become increasingly expensive as industrial applications increase worldwide. A push in sustainable chemistry has been to develop alternatives to the precious metal catalysts by using relatively inexpensive, earth-abundant metals. The chemical complexities of the more common metals have made this research a challenge, but the Los Alamos paper holds out hope that the earth-abundant metal cobalt can serve in place of its pricier relatives.

Cobalt, like iron and other transition metals in the Periodic Table, is cheap and relatively abundant, but it has a propensity to undergo irreversible reactions rather than emerging unchanged from chemical reactions as is required of an effective catalyst. The breakthrough by the Los Alamos team was to capture the cobalt atom in a complex molecule in such a way that it can mimic the reactivity of precious metal catalysts, and do so in a wide range of circumstances. The findings of the Los Alamos team have major ramifications and suggest that cobalt complexes are rich with possibility for future catalyst development. Due to the high performance and low cost of the metal, the cobalt catalyst has potential applications in energy-related technologies such as the production of biofuels, and the reduction of carbon dioxide. It also has implications for organic chemistry, where hydrogenation is a commonly practiced catalytic reaction that produces important industrial chemical precursors.

More information: Zhang, G. et al., Mild and Homogeneous Cobalt-Catalyzed Hydrogenation of C=C, C=O, and C=N Bonds, Angewandte Chemie International Edition. DOI: 10.1022/anie.201206051. Provided by Los Alamos National Laboratory

Cobalt, along with a number of other commodities, has come under increased scrutiny as prices continue to fall on concerns related to oversupply5. While prices are expected to remain under pressure in the near term, a number of market players suggest that prices cannot remain suppressed given the emergence of middle-class consumers in developing nations and the commodity's significant increased role in rechargeable batteries.

Cobalt Investing News (CIN) spoke with Erin Chutter, president and CEO of Puget Ventures6 (TSXV:PVS7), a mining exploration company focused on the acquisition, exploration and development of strategic metals properties. The company's primary project focuses are in Ontario, Canada and the Altai Republic of Russia.

CIN: Can you provide a brief outline of Puget Ventures, its main project focus and the reasoning behind the impending company name change to "Global Cobalt Corporation?"
Erin Chutter: Puget Ventures is a TSX Venture-listed company that is undergoing a game-changing acquisition and expansion to re-emerge to the market as the TSX-listed company Global Cobalt Corporation. This new company is being positioned to become a dominant regional player with multiple production-, exploration- and development-stage projects located in the Altai Republic of Russia, and nearby jurisdictions, within the next five years. Global Cobalt envisions advancing the Karakul cobalt project and other cobalt projects under right-of-first-refusal (ROFR) in the mineral-rich Altai Republic.

CIN: Cobalt prices recorded notable declines over the past 18 months on the back of concerns relating to oversupply. What is your price forecast for the commodity in the medium/long term?
EC: Cobalt pricing is extremely volatile; the majority of the world's cobalt is produced as a by-product of copper9 and nickel10 and there are very few companies mining primary cobalt itself. Given current conditions, short-term pricing should stabilize and hover around the $10 to $12/lb range. With that said, cobalt prices cannot remain here for long given global population growth, the emergence of middle-class consumers in developing nations and cobalt's significant increase in chemical applications with notable use in clean energy11 solutions, electric vehicle technology and the continued growth in demand for rechargeable batteries for smartphones and tablets. Long-term price expectations are much better. The average mobile phone contains about 3.5 grams of cobalt, with nearly 6 billion subscribers worldwide and phone penetration rates on the rise in emerging countries, cobalt demand is strengthening. There is even more cobalt, around 4 kg, used in the batteries of electric vehicles, a sector that is experiencing a greater market share in vehicle sales. It is during this ramp up of demand and uptrend in expected price that Global Cobalt should begin production at Karakul. Currently, cobalt prices are stuck at or below 2006 levels. This all-time-low pricing level, coupled with imminent supply chain risk and the ever-growing demand for the metal, creates a unique window for investment in the cobalt sector.

CIN: Puget Ventures bills itself as "Canada's next primary cobalt producer," however, its flagship project seems to have shifted to Russia. Is this an accurate assumption and where will the company's main focus be moving forward?
EC: Diversification is key. Having a strong project portfolio is paramount to the company's agenda of becoming a leader in cobalt and strategic metals. Global Cobalt will be the only TSX-listed company with multiple primary cobalt assets and it also aims to continue advancement of the Werner Lake project12. This project strengthens the company as a near-term source of production of cobalt and nickel concentrate and builds diversification in a low-risk jurisdiction, with a solid Canadian base.

CIN: The company has gained significant attention surrounding its Karakul cobalt project in Altai, Russia. Can you explain the significance of this project?
EC: Karakul is a primary-cobalt asset. This is an extremely important designation as Global Cobalt will become a future primary-cobalt producer and serve as a market supplier untied to the normal coupling of cobalt to the constraints of copper and nickel supply/demand dynamics. As a primary producer we are able to adjust to the commodity cycle and provide downside protection to cobalt produced as a by-product when copper markets fall off, and continue to supply the cobalt demand needed for its role as a consumer metal.

CIN: How will this affect the project's overall net present value (NPV)?
EC: An agreement is in place to fast-track a feasibility study for the Karakul cobalt project through the relationship with CHALIECO. Given the project's advanced state, we are of the opinion that a production decision can be made reasonably soon. We have reduced the typical six- to 10-year waiting period as discover risk is removed.

CIN: What are the next steps for this project. When might investors expect to see Puget Ventures producing cobalt?
EC: We recently announced the filing of a preliminary short form prospectus to raise just over $16 million for the advancement of the Karakul project. We are in late-stage discussions with a number of funds that have expressed interest in participating. This includes the European Bank for Reconstruction and Development (EBRD), a major shareholder in the parent company Global Cobalt is acquiring the assets from. Due to their strong support of the new management and ownership of Karakul and the Altai projects, the EBRD has conditionally agreed to partake in the current round of financing. Upon the successful completion of the raise, the company will close the transaction and re-emerge to the market and list as "GCO" on the TSX. A work program including infill drilling and metallurgical testing will commence immediately with the aim of completing a feasibility study that meets National Instrument 43-101 standards. With a favorable production decision, Karakul will be fast-tracked to development and could be in early production by 2015.

CIN: With the majority of cobalt currently being supplied from "unstable" regions, including the Democratic Republic of Congo (DRC), do you feel that a project of this scale will alter market dynamics, and if so how?
EC: Global Cobalt is a hedge to the very real risk of supply disruption caused by political unrest and poor transportation logistics in the DRC and across Africa. The DRC is also in the process of changing mining codes to increase state ownership of projects from 5 percent to 35 percent. Policy changes, political and regional instability and the need for a continental infrastructure overhaul in Africa equates to a major roadblock in the supply chain and raises demands from end-users for the diversification of cobalt production.

CIN: Once production is up and running where will Puget's cobalt supply be headed, and who will be the main purchasers?
EC: The Altai region of Russia borders China to the south, Mongolia to the east and Kazakhstan to the west. Given the project's proximity to the region it is logical to expect that the product will be delivered to end-users in neighboring Asian countries. Global Cobalt will certainly entertain a partnership based on future cobalt produced with an end-user in exchange for an equity interest.

Securities Disclosure: I, Adam Currie, hold no direct investment interest in any company mentioned in this article.

The link below provides the viewer with an update on the construction of its Idaho Cobalt Project refinery. This update compliments the original video dated July 2012, and represents refinery construction work completed since that time.

It is recommended to first view the original July 2012 Corporate Video, which is available on the Company's website.

In addition, an update video on the Idaho Cobalt Project minesite construction (Oct 2012), is available on the Company's website.

Formation Metals Inc.

The link below provides the viewer with an update on the construction of its Idaho Cobalt Project minesite. This update compliments the original video dated July 2012, and represents minesite construction work completed since that time. Proceeds from the $5 million debenture announced on October 17, 2012, are being used to prepare the cobalt project for underground development.

It is recommended to first view the original July 2012 Corporate Video, which is available on the Company's website.

IMPORTANT DISCLAIMER: Please note that any opinions, estimates or forecasts regarding Formation Metals Inc.'s performance made by these media interviewee's and newsletter writers are theirs alone and do not represent opinions, estimates or forecasts of Formation Metals Inc. or its management. Formation Metals Inc. does not by its reference above or distribution imply its endorsement of or concurrence with such opinions, estimates or forecasts. In some instances, Formation Metals has paid a fee in connection with such media and newsletter coverage.

IMPORTANT DISCLAIMER: Please note that any opinions, estimates or forecasts regarding Formation Metals Inc.'s performance made by these media interviewee's and newsletter writers are theirs alone and do not represent opinions, estimates or forecasts of Formation Metals Inc. or its management. Formation Metals Inc. does not by its reference above or distribution imply its endorsement of or concurrence with such opinions, estimates or forecasts. In some instances, Formation Metals has paid a fee in connection with such media and newsletter coverage.