Bushveld Minerals Limited (LON:BMN), the AIM listed, integrated primary vanadium producer, with ownership of high grade assets, has today provided an update on Phase Two of the Vametco expansion project.
Bushveld has successfully completed the second phase of the three-phased expansion project at Bushveld Vametco, on time and within budget, allowing the company to take advantage of the high vanadium price which has persisted in the first half of 2018. This phase of the expansion project increases the annual production capacity from 3,035 mtV, achieved in Phase One, to 3,750 mtV, with a capex of USD 2.5 million.
Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented: “The completion of Phase Two of the expansion plan is an important milestone on the Company’s journey to a 5,000 mtV per annum production capacity and beyond. The fact that this has been done in time and within budget is testament to the discipline of the management team which we applaud. We look forward to the commencement of phase three as we seek to maximise throughput of this flagship asset.”
Bushveld Minerals is a low cost, integrated, primary vanadium producer, with ownership of high grade assets.
The Company’s flagship vanadium platform includes a 59.1 per cent controlling interest in Bushveld Vametco Alloys (Pty) Ltd, a primary vanadium mining and processing company; the Mokopane Vanadium Project and the Brits Vanadium Project. The coal platform comprises the wholly-owned Imaloto Coal Project, which is being developed as one of Madagascar’s leading independent power producers. The Company’s tin interests are held through its shareholding in AIM listed AfriTin Mining Limited.
Bushveld’s vision is to become a significant, low cost, integrated primary vanadium producer through owned high grade assets. This incorporates development and promotion of the role of vanadium in the growing global energy storage market through Bushveld Energy, the Company’s energy storage solutions provider. Whilst the demand for vanadium remains largely anchored in the steel industry, Bushveld Minerals believes there is strong potential for an imminent and significant global vanadium demand surge from the fast-growing energy storage market, particularly through the use and adoption of Vanadium Redox Flow Batteries.
While the Company’s focus is on the vanadium operations and the development and promotion of VRFBs it has additional investments in coal, power and tin.
The Company’s approach to project development recognises that, whilst attractive project economics are imperative, they are insufficient to secure capital to bring them to account. A clear path to production within a visible timeframe, low capital expenditure requirements and scalability are important factors in ensuring a positive return on investment. This philosophy is core to the Company’s strategy in developing projects.
