Date: Nov 12, 2018
Bushveld Minerals PLC (LON:BMN) is to push ahead with the expansion of its Vametco vanadium plant to take advantage of soaring demand for the steel additive.
Vanadium prices jumped 24% over the quarter to September to US$85.8/KgV (R1,222) and have risen by 137% over the past 12 months.
Industrial and community action, however, disrupted production, with output of Nitrovan or vanadium nitride, almost 15% lower quarter-on-quarter at 537 mtV (metric tonnes of vanadium).
“While higher vanadium prices partially mitigated the impact of the production shortfall, with the company expected to generate healthy cash flows, Bushveld intends to use this opportunity to sustainably maximise production volumes and drive operating costs down,” said Fortune Mojapelo, Bushveld’s chief executive.
“Accordingly, we are pleased to have commenced with Phase 3 of our expansion plan, which will increase capacity at Vametco to 5,000 mtV per annum.
