Bushveld Minerals Ltd. said on Wednesday that studies showed an opportunity to increase annual vanadium production at its Vametco and Vanchem mining and processing plants in South Africa.
The AIM-listed company said the studies highlight the possibility to increase production at the plants by around 50%, to 8,000 metric tons of vanadium a year.
The studies were to determine next-phase growth plans beyond the sustainable production range of between 5,000 metric tons and 5,400 tons of vanadium per year, which is expected to be achieved by the end of 2022, the company said.
Bushveld said the growth plan will require a capital expenditure of $151 million and the production expansion will be pursued if performance targets are met and sufficient funding secured.
“Furthermore, the studies put us in a position to rapidly respond to growing vanadium demand. Growth in demand for vanadium is supported by rising intensity of use within high-strength-low-alloy steel, as well as the significant upside potential for vanadium redox flow batteries given the increasing requirement for energy storage applications for renewable energy sources,” Chief Executive Officer Fortune Mojapelo said.
Shares at 1012 GMT were down 0.5 pence, or 6.5%, at 6.83 pence.
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