Date: Apr 17, 2018
With plans underway to expand production capacity at its Maracás Menchen mine in Brazil, Largo Resources (TSX:LGO) expects to see a 25-percent increase in vanadium pentoxide output by next year.
According to a Monday (April 16) press release, the company intends to spend an estimated US$15.5 million to expand its mine to accommodate a production rate of 1,000 tonnes of vanadium per month, compared with its current monthly capacity of 800 tonnes.
The expansion, which will focus on the fusion, milling, leaching and filtering areas of the mine, is set to begin in June, with completion set for June 2019.
Largo believes a capacity as high as 1,100 tonnes could be reached if the kiln refractory receives certain upgrades and improvements.
The company began production at Maracás Menchen in August 2014 after starting construction at the property in June 2012. The mine achieved nameplate capacity in June 2016. Largo has a take-or-pay agreement with Glencore (LSE:GLEN) for all vanadium material produced for the first six years that the mine is in operation.
