Mining Technology reported that Vanadium producer Bushveld Minerals has signed an agreement to conditionally acquire several vanadium manufacturing assets in South Africa. The business and share purchase agreement was signed with Vanchem Vanadium Products, a subsidiary of Duferco Vanadium Investment, South African Japan Vanadium Proprietary, a subsidiary of VVP and Duferco Participations. The deal includes the vanadium production business of VVP, the ferrovanadium production business of SAJV and 100% of the outstanding shares of Ivanti Resources, a subsidiary of Duferco Participations.
Bushveld said the Vanchem Plant and SAJV Business will jointly be referred to as the Vanchem business.
The company is purchasing the Vanchem business and Ivanti shares for an aggregate consideration of USD 68 million.
Situated at Ferrobank Industrial Park in Emalahleni Local Municipality, the Vanchem vanadium producing facility features a plant capable of manufacturing several vanadium oxides, ferro-vanadium and vanadium chemicals.
Bushveld Minerals CEO Fortune Mojapelo said “This highly strategic transaction combines our existing portfolio of high-grade low-cost primary vanadium resources, including the Mokopane greenfield deposit, with an established production facility. This substantially reduces the capital required to bring the Mokopane Project into production, while also bringing it online in a much shorter timeframe than if we were to construct a new plant.”
The vanadium platform of Bushveld features a 74% controlling stake in Bushveld Vametco Alloys, a primary vanadium mining and processing company; the Mokopane vanadium project and the Brits vanadium project.
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