Date: Jun 29, 2018
Via a memorandum of understanding (MOU), Australian Vanadium (ASX:AVL) has signed an offtake deal for vanadium with Chinese steel and alloy company Win-Win Development Group.
The vanadium products involved in the non-binding MOU are to be used to make vanadium carbon nitride (VCN) for micro-alloy rebar production.
Win-Win is currently building a 5,000-tonne-per-year VCN production line that requires 7,000 to 8,000 tonnes of 98 percent vanadium pentoxide (V2O5) annually. The first stage will require 2,000 to 3,000 tonnes per year and is set to be operational by 2019, with the second stage docketed for 2020.
The vanadium is set to come from Australian Vanadium’s Gabanintha project in the Murchison province of Western Australia. It is currently in development, and the offtake agreement will help finance and create investment in the project.
“The addition of a substantial agreement with a steel and alloy producer creates a firm foundation with which Gabanintha can participate in the most established market for vanadium,” Australian Vanadium Managing Director Vincent Algar said in a statement.
“We look forward to continuing discussions around the financing and development of the Gabanintha Project,” he added.
