Technology Metals Australia Limited (ASX: TMT) (“Technology Metals” or the “Company”) is pleased to announce the execution of a binding vanadium pentoxide Offtake Agreement (“Agreement”) with CNMC
(Ningxia) Orient Group Company Ltd. (“CNMNC”) over vanadium production from its wholly owned globally significant, long life, low cost, large scale Gabanintha Vanadium Project (“Project” or “GVP”).
CNMNC’s vanadium alloy production business, CNMC Ningxia Orient Group Special Materials Co., Ltd., produces vanadium nitrogen alloys (“VN”) and ferrovanadium (“FeV”) for use in the Chinese steel industry.
During the period of negotiating the Agreement, CNMNC introduced the Company to its parent entity, China Nonferrous Metal Mining (Group) Co., Ltd. (“CNMC”), to discuss Project support, including scope for
financing and EPC arrangements via its sister company, China Nonferrous Metal Industry’s Foreign Engineering and Construction Co., Ltd (“NFC”).
TMT Managing Director Ian Prentice commented; “We are very pleased to have executed our first binding Offtake Agreement with CNMNC and look forward to a long, mutually beneficial partnership. The collaborative and co-operative approach of the negotiations bodes very well for the companies’ future relationship. This Agreement is a key milestone for progressing the development of GVP, including EPC and financing discussions, and underscores the importance of delivering a very high quality DFS and a very high purity vanadium pentoxide (V 2 O 5 ) product”.
Mr Yi Junping, General Manager of CNMNC Special Materials Co., Ltd. & Party Secretary Commented; “We are very pleased to have established this offtake relationship with Technology Metals Australia, securing such a high quality product from a Tier 1 mining jurisdiction, and very much look forward to working with Ian and his team as they progress the development of the world class high quality, low-cost Gabanintha Vanadium Project”.
CNMNC, a rare metal manufacturer headquartered in Shizuishan, Ningxia Province, Peoples Republic of China, was established in 1965 and is a controlled subsidiary of CNMC. CNMNC is a top ten producer of vanadium alloys in China, producing both vanadium-nitrogen (“VN”) and ferrovanadium (“FeV”) for the Chinese domestic steel industry. In 2018 CNMNC produced approximately 2,000 tonnes of VN and 1,500 tonnes of FeV based on consumption of approximately 4,000 tonnes of V 2 O 5 . Existing expansion plans would see VN production increasing to approximately 3,000 tonnes per annum and overall V 2 O 5 consumption increasing to approximately 6,000 tonnes per annum.
www.ferroalloynet.com
