Jervois receives Idaho State Tax Reimbursement Incentive for ICO
- Jervois receives Idaho Tax Reimbursement Incentive (“TRI”) approval for Idaho Cobalt Operations (“ICO”)
- Incentive will provide reimbursement of 28% of Idaho corporate, payroll and sales taxes for 14 years
- To receive the tax credits, Jervois will create a minimum of 164 new jobs in Idaho at an average annual wage above the Lemhi County average
- Jervois will move forward to finalize financing and construction of ICO in the State of Idaho, one of the most attractive investment jurisdictions both globally and within the United States
- ICO expects to commence commercial cobalt and copper production in mid-2022 when it will be the only cobalt mine in production in the United States
TheNewswire – 13 May 2021 - Jervois Mining Limited (“Jervois” or the “Company”) (ASX:JRV) (TSXV:JRV) (OTC:JRVMF) confirms it has received approval for the Idaho Tax Reimbursement Incentive (“TRI”) for its 100%-owned Idaho Cobalt Operations (“ICO”) in the United States (“U.S.”). Jervois expects to commence cobalt production at ICO mid-2022, making it the only producing cobalt mine in the country.
Jervois is genuinely excited to be on the cusp of a major investment into Idaho to finalise mine and mill construction. Idaho is recognised as one of the leading jurisdictions in the U.S. to invest. Idaho has a stable legal and political system that prioritises attracting high quality, diversified businesses with employment, tax and other regulations to facilitate investment and job creation. It simultaneously prioritises protecting the state’s pristine natural environment, including waterways, wilderness and air quality. The Idaho economy is consistently among the strongest in the U.S. It has among the most rapid rates of economic and employment growth while concurrently maintaining the lowest ratio of debt service as a share of government revenue of anywhere in the country.
The Idaho TRI aims to encourage businesses to invest in the state. It is a policy tool selectively applied by the State of Idaho to attract and grow new businesses of scale and significance to the economy, such as Jervois. Program eligibility is determined based on capital investment thresholds, the level and quality of job creation together with positive economic impacts, both locally and more broadly across the state of Idaho. To receive the tax reimbursement incentive, Jervois will create 164 new jobs in Idaho at an average wage of above the Lemhi County average. The award to Jervois recognizes the approximately US$100 million of investment thus far into the mine site over more than a decade by its local subsidiary, Jervois Mining USA.
For Jervois, Idaho boasts a skilled workforce, strong infrastructure and competitive low carbon energy costs. Current power to ICO site from the Idaho grid is less than U.S. 5 cents per kwh, while currently generating more than 65% of the State’s power from renewable sources. In addition, Idaho Power has offered ICO 100% renewable power from 2023, the first full year of mine and mill operation.
Positive engagement with host communities and local stakeholders is critical for Jervois, wherever it operates. This arrangement was originally recommended by Lemhi County, in which ICO is located, and was recently unanimously approved by the Idaho Economic Advisory Council. Jervois is pleased with the partnership between Lemhi County and the State of Idaho, and believe it reflects positively on the Company’s standing in Idaho and its relationship with residents and governmental authorities, both across the state and specifically in Lemhi County.
Construction at site is continuing, with contractors currently completing the Water Treatment Plant, with full construction to recommence over the Idaho summer.
First commercial production of cobalt and copper concentrates at ICO is expected to commence mid-2022. ICO will be the only cobalt mine in the U.S. once in operation.
On behalf of Jervois Mining Limited
Bryce Crocker, CEO
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This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to timing of production at ICO, anticipated payments to the State of Idaho and associated tax incentive credits to be reimbursed and certain other factors or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.
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