Mycelial biomass of Wild type and a Co2+-resistant N.crassa (cor) was used to remove Co2+ from aqueous media. Mycelia obtained from growth in nitrate N-medium (NaNO3) was more effective than ammonium N-medium (NH4NO3), in removing Co2+. Co2+-resistant N.crassa cor was more efficient than wild type in removing Co2+ from medium containing higher concentrations (500 mg/L). Metal removal was linear up to 12 h at which 35-60% Co2+ is depleted from medium, reaching near saturation by 24 h (90% removal). Co2+ removal was as efficient even from pure solutions and sodium azide inhibited the process up to 60%. Cell walls prepared from nitrate N-medium grown mycelia bound 3 - 5 fold more Co2+ when compared to ammonium N-medium. The importance of bioaccumulation and biosorption in bioremediating toxic metal ions from effluents is discussed.