Recently, Bushveld Minerals, one of the four largest vanadium ore producers in the world, announced its operation in 2019, and made plans and prospects for its operation in 2020.
1. Operation in 2019:
(1) Vametco vanadium ore:
In 2019, Bushveld’s production of vanadium-nitrogen reached a record of 2833mtV (mtV refers to tons of vanadium metal volume), an increase of 11% compared with 2560 mtV in 2018. The cash cost of production in 2019 was 18.10 USD/kgV, a decrease of 5% compared with 19.11 USD/kgV in 2018. Despite a 30% drop in vanadium prices over the same period, EBITDA of $42.4 million (Audit not completed) was achieved in 2019.
(2) Vanchem vanadium processing plant:
In November 2019, it completed the acquisition of 100% equity of vanchem processing plant. Key refurbishment programs have been launched to meet regulatory standards and increase productivity. The expected capital expenditure budget and production increase plan are under development.
(3) Mokopane vanadium ore:
On January 29, 2020, the Ministry of Mineral Resources and Energy of South Africa(DMRE) granted Pamish 30-year mining rights to five farms in the mokopane vanadium project area.
2. Planning and Outlook in 2020:
(1)Vametco:
-It is planned to produce 3000-3200 mtV, with an increase of 6% – 13% compared with 2019.
-Ferrovanadium is planned to be produced through the vanchem processing plant.
-It is planned to control the cash cost of production in 2020 at 17.20-17.70 USD/kgV, 2-5% lower than that in 2019.
(2)Vanchem:
-960-1100mtv is planned to be produced from stock materials.
-Based on the existing vanadium-nitrogen of Vametco, it is planned to increase and enrich the product categories to produce ferrovanadium and vanadium chemicals.
(3)Bushveld Energy:
-VRFB investment platform (“VIP”) has been launched as an important strategic component with vanadium battery company.
-Two initial investments have been made under VIP, one is to support the merger of Avalon and RedT, and the other is to acquire a minority stake in Enerox.
-Promote the construction of vanadium electrolyte plant.
-Implement more and larger electrolyte leasing contracts.
-Promote VIP and invest in the determination of suitable vanadium battery companies.
-Continued validation of the vanadium battery commercialization project, including the establishment of a micro grid at Vametco.
-Participate in the bidding project of battery energy storage system as part of South African Integrated Resources Plan(SAIRP).
“The last quarter of 2019 was very important for Bushveld,” said mojapelo, CEO of Bushveld Minerals. “The acquisition of Vanchem is transformative because it provides us with a diversified operational base to achieve our near and medium-term growth plans. I’m glad Bushveld has two of the world’s four vanadium primary processing plants. ”
“Vametco’s increase in production, Vanchem’s initial resumption of production and the implementation of the Mokopane mining rights are all encouraging, but we cannot grow just for the sake of growth. We will ensure that we continue to be robust in the way we invest in capital and that any increase in production is profitable, especially in the context of current price volatility. In 2020, we will continue to ensure the competitive advantage of Vametco, continue to innovate, invest in the future and optimize profits, while providing or duplicating the successful experience and resources of Vametco for the team of Vanchem. This will enable us to build an enterprise with good flexibility throughout the commodity cycle. By doing so, our goal is to become a lower cost vanadium producer through increasingly diversified product range, which will enable us to see through the short-term weaknesses of the market, make decisions based on the long-term market, and provide a stable development environment for the development of new downstream demand (such as energy storage). ”
Mojapelo said that Bushveld’s scalable low-cost production base provides a solid platform for the company’s development. Through the vanadium battery energy storage business of downstream Bushveld Energy, the company will realize its vertically integrated business model. In 2019, Bushveld Energy made significant progress in all its key areas, including promoting the development of electrolyte production capacity, implementing the electrolyte leasing model, developing the vanadium battery energy storage business, and launching the vanadium battery investment platform. Investing in VRFB technology is a key part of Bushveld’s strategy. This is because, first of all, it will help expand the scale of VRFB, which will increase the demand for vanadium. Second, it will provide a natural way for companies to hedge against price fluctuations. Finally, Bushveld will better promote the development of the company and create value for shareholders through the realization of its upstream and downstream goals.
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