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(Alliance News) - Kazakhstan-focused vanadium miner Ferro-Alloy Resources Ltd on Tuesday reported a record month of production in June.
For the first half of 2019, Ferro-Alloy produced 71.5 tonnes of vanadium pentoxide, 55% higher than the year before. June hit a record 17.6 tonnes.
Ferro-Alloy expects production to climb further during the rest of 2019, given it is building and installing new equipment.
The company is developing the "giant" Balasausqandiq vanadium project, but already produces from a processing operation of second-hand materials.
Chief Executive Nick Bridgen said: "The expansion work at our existing vanadium concentrate processing operation is paying dividends resulting in a 55% increase in production over last year and increasing further from the level at the beginning of this year.
"There is still expansion work to be completed and new equipment to be installed that we anticipate will result in a significant step up in production in the final quarter of this year and in the first half of 2020. The existing operation provides a valued source of revenue for the company that can be utilised for further general project development."
"The work at the existing operation is a stepping stone to the development of the Balasausqandiq vanadium project, with its reserve of over 70 million tonnes estimated on a locally required basis and net present value of USD2 billion at a long-term forecast vanadium pentoxide price of USD7.50 per pound," Bridgen continued.
"The size of our deposit and our unique ore mean there is the potential to be one of the world's largest and lowest cost producing vanadium mines, and the growing demand in the vanadium market, particularly with the increasing usage of vanadium batteries in clean energy storage, puts Ferro-Alloy in a very attractive position to capitalise on this opportunity."
Shares were up 0.7% on Tuesday shortly after midday in London at 37.00 pence each.