AIM-quoted Bushveld Minerals, the AIM listed, integrated primary vanadium producer, with ownership of high grade assets has successfully completed the second phase of the three-phased expansion project at Bushveld Vametco.
This second phase was completed 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 US$2.5 million.
“The completion of Phase Two of the expansion plan is an important milestone on the Bushveld Minerals’ journey to a 5,000 mtV per annum production capacity and beyond," states company CEO, Fortune Mojapelo.
"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, one of only two vanadium producers in South Africa, is in a unique position - it has a large, high grade primary vanadium deposit portfolio with a combined 440 Mt resource (including 55 Mt combined reserve) with Tier-1 vanadium grades of ~2% V2O5 (vanadium pentoxide) in magnetite, which has helped position the company as an emerging large-scale primary vanadium producer.
Bushveld Minerals has its eyes firmly set on its vision of building the largest, lowest cost and most vertically integrated primary vanadium platform in the world (based on resource size and vanadium production).
This is an opportunity for Bushveld Minerals to carve its name as a pre-eminent vanadium primary producer at a time of constrained supply and limited new supply prospects – a situation that is expected to lead to a sustained structural market deficit, with significant price upside.