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Thanks Lindon, still lots of upside here and I'm holding. Looking forward to the next update
@RazorShultz, Knuttie has been consistent in his opinions about Eskom. He’s always been clear about his reservations on that subject. Also just to clear, no-one has claimed that BMN were not part of the phase 1 tender bids. But if they were, it could only have been as a supplier of V to one of the bidders, IF their bid was successful. In the event none of the winners selected included VRFB tech in their bid. FM has stated it did not participate directly in the bidding process due to not have the wherewithal to stand any chance of winning. It remains to be seen if the CellCube expansion plans and battery assembly in SA proposition can be completed in time for BE to bid directly for the upcoming Phase2 round.
As I see it, and could well be wrong! the intentions are for BE to structured to become an integral part of the battery manufacturing and assembly AND lease management sides of the operation, alongside project management activities in Africa … and for BMN to be the miner, V processor and electrolyte supplier to whatever projects BE/ Enerox come up with.
RazorShultz, 3 very straightforward reasons
1) Eskom is a basket case, approach with care
2) Eskom would screw us on margin to 0%
3) don’t run before you have learnt to walk.
Morning all. Almost through the week. Knuttie why did you never want BMN involved with Eskom? Presumably you don't care that BMN weren't part of any of the tenders therefore! And on the subject of the MUST RTO, we'll all be watching that with interest
Lindon you may be interested to know that someone has posted elsewhere an email reply from Chika in which with regard to BELCo she clearly states that the transition to Bushveld Vanadium hasn’t been completed yet but will be before the carve out. Interesting?
@ RazorShultz, yes that’s how I see the BESS side developing and going back to your question about my faith in the mining side, imo FM’s intention is not for BELCO to be included in the carve off but to remain in his camp alongside the mine and the rest of the Bushveld Vanadium operations … as per RNS Number : 2865O
Bushveld Minerals Limited
08 February 2021
§ Progress procurement and construction of the electrolyte plant. In order to ensure closer alignment of all vanadium operating facilities, BELCO will migrate to the Bushveld Vanadium platform both operationally and in ownership.
To that end I also believe this development is a ground preparation exercise because BE is going to part of in MUST rto manoeuvres.
The prospectus is due out this month if everything has remained on track. So maybe not long to find out.
We shall see.
I stated a long time ago that I didn’t want our company involved with Eskom at all.
Good detailed posting Lindon.
I'm also of the opinion BE need to concentrate on private businesses and mines as there is a lot of business to be had with Eskom failing to provide stability. You can see BESS and solar being the future of Africa.
The biggest news BMN have had is NERSA loosening the strings of 100MW of power generation. This is something they need to pounce on with lithium prices rocketing.
https://www.mining-technology.com/comment/twitter-joe-lowry-rising-lithium-prices/
Maya, apologies , my mistake. Obviously two similar posts. I too hope we soon see some II’s buying in big.
Learning new stuff is never wasted. Held up quite well considering others today, HOC bummed as low as 79p.
Just to clarify… as stated, Acacia is a private investment company, which is 100% owned by Teston Limited which is an investment company for Mr Joseroy Borromeo. Mr Borromeo owns 100% of Teston Investements Limited.
Those Bushveld Shares were beneficially held for Acacia (with Mr Borromeo as the ultimate beneficiary) by Oak Nominees Limited (Oak Nominees).
Oak Nominees was the registered holder of those Bushveld shares.
A few years ago ‘Oak Nominees’ issued a TR1 to the effect that those holdings were transferred to Orange Trust ( possibly for beneficial tax reasons perhaps,??) all roads do seem to lead to an extraordinary and very wealthy businessman … Mr Jose Roy Hernandez Borromeo, long standing major Bushveld Minerals shareholder.
@ brasi, yes. I think Borromeo and his investment vehicle (arcacia resources) is the main ‘mover and shaker’ behind all the plans.
Also remember that he was touted as being one of the very wealthy and secretive group of SA. investors known nowadays as Orange Trust.
Prior to being listed as a major shareholder and founding member of BMN in his own right, his holdings were backed into Orange Trust by its forerunner Oak Trust
Acacia is a private investment company, which is 100% owned by Teston Limited which is an investment company for Mr Joseroy Borromeo. Mr Borromeo owns 100% of Teston
Good stuff then! Africa does indeed have the advantage that unlike the tiny UK, there is a lot of room for a business to expand to multiple nations, there's also not many competitors in the space yet! Thank you, have a good evening
@ RazorShultz. Yes, 100% absolutely. But I’ve never made any secret that I’ve never been on board with the POV that all the well known delays to the ELZ plant etc. etc. etc. we’re anything to do with waiting for the Eskom to sort out their contracts. So it’s no surprise to me that we didn’t get anything. I’ve never thought we would, but hoped we might have got a contract to supply a few tonnes of V as a supplier out of it in the event no VRFB ‘s got a look in. Don’t know if any VRFB’s oriented concerns even issued a bid.
In my view the whole of our battery side of our operation has always been firmly pointed in the direction of the soon to take off African Hybrid mini- grid market. It’s my belief that the CellCube expansion and the ELZ plant have been timed to coincide with the freeing of the government constraints to the hybrid, renewable energy/BESS oriented mini- grid market which will be enormous.
That is the direction where I’ve always seen our future lies. I actually think it’s towards that end that further investment in increasing CellCube’s manufacturing capacity is really aimed at. The whole African continent of over 50 countries are going in the same hybrid mini- grid direction as S.A.
As Ive said before … who needs the rest of the world when you’ve got a huge market just about ready to take off … right on your doorstep?
@lindon do you still think this is the case below from a year ago you posted it? And think it will be before the deadline at the end of the month? Thanks
'Borromeo (one of BMN ‘s original seedling and largest investors, now operating through his investment vehicle Acacia Resources is, imo continuing to work alongside FM as a main driving force behind the MUST RVO.
Imo it’s a deal that’s been a long time in the planning and making ... and a massive piece of BMN’s longer term strategy for its Enerox subsidiary being put into place. Nothing whatsoever to do with MUST simply running out of time to get invested in something.'
Demand and lack of supply is forcing Li prices up. Diesel costs are forcing companies to look at alternatives. VRFB’s become competitive over a longer time frame or larger projects. The high residual value of the battery means financing is actually easier, eg leasing alternatives. Insurance costs are now biting into Li projects because of the historical fires. Safety and re-cycling will become major factors in decisions about type of storage.
VFRBs will take off, I have no doubt. We are starting from virtually a zero base line. Costs will fall once the infrastructure builds. That is what the IDC is trying to do. I believe take up will follow the same timeline and trajectory as solar cell and wind power has taken. Slowly and then exponentially. Oil may transition into this and other technologies, accelerating the development of the industry. Governments may subsidise new projects in order to maximise efficiencies from currently installed green generators or to replace gas and coal generators. They may give out grants etc. to assist in a similar way the IDC has. Still a couple of years away though.
What did the recent VRFB forum conclude?
Yep. That’s the one. It’s a huge site and he did it in the timescale promised. No thermal runaway probs for that one.
But as I said no point or benefit to be gained in banging on about the drawbacks of the competition, until we can install batteries in such huge numbers and prove that we ourselves are in a position to call ourselves, ‘competition’.
Hi there Lindon, you still positive about the Vanadium mining side of things? Disappointing news the eskom BESS tenders to be honest. I'm still holding here though.
Your talking about the Tesla one that Musk said he'd do in 3 months and if he couldn't he'd do it for free? I thought that was this one?
Nope, the Oz one that caught fire last year whilst being commissioned was an entirely different BESS project to the one I referred too which was built, commissioned and has been in use now for several years … It’s actually irrelevant to run down the competition and complain about its drawbacks, as FM has previously stated, it’s pointless to complain about the occasional fires that arise… because the Lithium industry can at least build the batteries in huge numbers required and have a long track record of fulfilling numerous major contracts, the whole world over … projects that are currently way beyond the scope of the VRFB industries abilities to service. But DYOR!
South Africa- Lithium Batteries, v. big lithium batteries, as it's that or nothing (for now). What could be better in 40+ degrees C?
I like the bit 'in line with guidance offered by the manufacturer to emergency responders to let burning Megapacks consume themselves' like it's a child that's had too much sugar so let them tire themselves out.
That's alright then.
At least they found the cause Daisydog and the 'safe failure' advice really puts the mind at ease :|
https://www.energy-storage.news/investigation-confirms-cause-of-fire-at-teslas-victorian-big-battery-in-australia/
A single pre-manufactured 3MWh Megapack unit caught fire on 30 July 2021, spreading to a neighbouring Megapack. The spread stopped there and the fire burned itself out over a six hour period. This was in line with guidance offered by the manufacturer to emergency responders to let burning Megapacks consume themselves while monitoring other possible exposures at a safe distance.
It was a ‘safe failure,’ with no injuries reported to site personnel, first responders or the general public and the multi-team investigation commenced almost immediately, on 3 August.
@beginerman
Not sure which post your referring too unless you mistook my post to daisydogs as being aimed at you.
I understood your question and my thoughts on it were that I thought institutional investors were currently probably not ready to jump in due to the complicated nature bmn setup.
I fully believe once the spin out of BE is completed then each business will be able to attract its own institutional investors.
Some will agree with me some will not and that’s fine too.