The planned restart of Brazil’s São Miguel Paulista refinery could re-establish an important source of refined nickel and cobalt outside Asia while creating a stronger connection between Brazilian metal processing and European battery and specialty-material markets.
Owned by Jervois, the São Miguel Paulista facility is currently the only South American project recognised as a strategic project under the EU Critical Raw Materials Act. Rather than relying exclusively on domestic mining, the refinery is designed to process imported mixed hydroxide precipitate (MHP) and cobalt hydroxide, giving it flexibility in sourcing intermediate feedstock. At full capacity, the refinery is expected to produce approximately 12,000 tonnes of Class 1 nickel cathode and 2,000 tonnes of cobalt cathode per year. Refurbishment and recommissioning are progressing through 2026 and 2027, with production ramp-up targeted for 2027.
Brownfield Restart Offers Advantages and Risks
São Miguel Paulista benefits from its status as a brownfield processing operation rather than a completely new refinery project. Existing buildings, utilities, equipment and processing infrastructure could reduce both construction requirements and the time needed to return the facility to operation. Reusing established infrastructure can also lower the replacement cost compared with developing a greenfield refinery from the ground up.
Brownfield assets bring their own technical challenges. Jervois must assess the condition of equipment that has spent an extended period outside normal operation, including potential corrosion, ageing components, control-system compatibility and the amount of rehabilitation required before sustained production can begin. The quality of the refurbishment programme will therefore be critical to the project’s ability to reach nameplate capacity and maintain reliable operations.
European Connection Extends Beyond EU Strategic Status
São Miguel Paulista’s importance to Europe is not limited to its designation under the EU’s critical-raw-materials framework. Jervois also operates cobalt-refining and specialty-products facilities in Kokkola, Finland. That existing European footprint creates opportunities to coordinate feedstock procurement, customer qualification and marketing between the Brazilian and Finnish operations.
Such integration could allow Jervois to position São Miguel Paulista as part of a broader transatlantic nickel and cobalt processing network. For European consumers, the attraction is clear: the refinery could provide additional refined metal capacity outside Asia while connecting an established South American processing facility with European industrial markets.
Feedstock Security Will Determine Refinery Economics
Technical completion alone will not determine whether the restart becomes commercially successful. São Miguel Paulista’s profitability will depend heavily on the difference between the cost of imported intermediate feedstock and the price achieved for refined nickel and cobalt. That makes secure feedstock supply almost as important as the physical rehabilitation of the refinery.
Long-term supply agreements could help Jervois maintain high utilisation and reduce exposure to short-term market fluctuations. Without reliable feedstock, however, the facility could face periods of low utilisation that weaken its economics. The customer side presents a similar challenge. Refined nickel and cobalt must meet required specifications and obtain acceptance from industrial buyers. Without established customers, the refinery could remain exposed to volatile spot-market conditions and changing treatment and refining margins.
Jervois’ Financial History Highlights the Funding Challenge
The refinery’s previous difficulties also demonstrate why strategic importance does not automatically translate into strong investment returns. Jervois underwent financial restructuring during the earlier nickel and cobalt downturn, contributing to delays in the São Miguel Paulista restart.
The new development phase therefore requires more than capital expenditure on refurbishment. The operation will need sufficient working capital, inventory financing and liquidity to purchase intermediate material, process it and manage the time between acquiring feedstock and receiving revenue from refined products. This financing cycle can become particularly demanding in volatile nickel and cobalt markets, where metal prices, treatment charges and customer terms can change rapidly.
2027 Ramp-Up Will Be the Real Test
The restart gives Europe something different from another undeveloped mining project: access to an existing South American refining asset with a defined production route. If the facility reaches its planned output of approximately 12,000 tonnes of nickel cathode and 2,000 tonnes of cobalt cathode annually, São Miguel Paulista could become a meaningful addition to non-Asian refined-metal supply.
Its European strategic designation and Jervois’ Finnish operations provide an established framework for potential cross-border integration, but the commercial case ultimately depends on operational performance. The decisive indicators will be sustained throughput, product quality, reliable feedstock supply and healthy refining margins during the 2027 ramp-up. If those conditions are achieved, São Miguel Paulista could move from being a strategically important brownfield asset to a functioning Brazil-Europe supply link for nickel and cobalt, strengthening diversification efforts across the critical-minerals market.
