Australian Vanadium (AVL) has signed a letter of intent with Rizhao Steel for offtake of the iron titanium co-product from Australian Vanadium’s operations in Western Australia’s Mid West region.
Rizhao Steel is ranked as the world’s 26th and China’s 15th largest integrated steel producer and produces 15 million tonnes per annum of steel from its mill in Shandong Province.
It is also China’s largest importer of titanium-bearing concentrate.
AVL plans to produce about 900,000 tonnes per annum of iron titanium, along with 11,200 tonnes per annum of vanadium pentoxide from its Western Australia operations.
It says the sale of the co-product enhances the project’s economic resilience through the addition of a secondary revenue stream
Australian Vanadium’s processing facility is located near Geraldton, which will allow the export of iron titanium co-product.
The co-product is suited for use in iron sintering feeds providing low-cost titanium and iron units to steel producers.
Blast furnace operators often add titanium to sintering blends to improve furnace refractory protection and to minimise maintenance costs. AVL’s co-product will enter the market as a stable alternative to existing reliable and unreliable sources of similar material.
“Our consultant in China continues to help AVL to build relationships with some of the country’s top steel producers. We look forward to working with Rizhao Steel to supply this unique product which can cost-effectively improve operational efficiency,” Managing Director Vincent Algar said.
“Work continues on additional letter of intents and binding agreements. These agreements further validate AVL’s strategic decision to locate its vanadium processing plant close to Geraldton’s port, strengthening the AVL pathway to funding and project development.”
Australian Vanadium shares were up 3.80 per cent and trading at 8.2 cents at 11:09 am AEST.
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