Last checked at 28 Jun 2018 07:10
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Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
28 June 2018
Bushveld Minerals Limited
("Bushveld" or the "Company")
Bushveld Vametco - Completion of Phase Two
Bushveld Minerals Limited (AIM: BMN), the AIM listed, integrated primary vanadium producer, with ownership of high grade assets, is pleased to provide an update on Phase Two of the Vametco expansion project.
Bushveld has successfully completed the second phase of the three-phased expansion project at Bushveld Vametco, on time and within budget, allowing the company to take advantage of the high vanadium price which has persisted in the first half of 2018. This phase of the expansion project increases the annual production capacity from 3,035 mtV, achieved in Phase One, to 3,750 mtV, with a capex of USD 2.5 million.
Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented:
"The completion of Phase Two of the expansion plan is an important milestone on the Company's journey to a 5,000 mtV per annum production capacity and beyond. The fact that this has been done in time and within budget is testament to the discipline of the management team which we applaud. We look forward to the commencement of phase three as we seek to maximise throughput of this flagship asset."
Enquiries: info@bushveldminerals.com
Bushveld Minerals | +27 (0) 11 268 6555 | |
Fortune Mojapelo, Chief Executive Officer | ||
Chika Edeh, Head of Investor Relations | ||
SP Angel Corporate Finance LLP | Nominated Adviser & Broker | +44 (0) 20 3470 0470 |
Ewan Leggat | ||
Richard Morrison | ||
Alternative Resource Capital | Joint Broker | |
Rob Collins | +44 (0) 207 186 9001 | |
Alex Wood | +44 (0) 207 186 9004 | |
Tavistock | Financial PR | |
Charles Vivian / Gareth Tredway | +44 (0) 207 920 3150 | |
Lifa Communications Gabriella von Ille | Financial PR |
+27 (0) 711 121 907 |
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a low cost, integrated, primary vanadium producer, with ownership of high grade assets.
The Company's flagship vanadium platform includes a 59.1 per cent controlling interest in Bushveld Vametco Alloys (Pty) Ltd, a primary vanadium mining and processing company; the Mokopane Vanadium Project and the Brits Vanadium Project. The coal platform comprises the wholly-owned Imaloto Coal Project, which is being developed as one of Madagascar's leading independent power producers. The Company's tin interests are held through its shareholding in AIM listed AfriTin Mining Limited.
Bushveld's vision is to become a significant, low cost, integrated primary vanadium producer through owned high grade assets. This incorporates development and promotion of the role of vanadium in the growing global energy storage market through Bushveld Energy, the Company's energy storage solutions provider. Whilst the demand for vanadium remains largely anchored in the steel industry, Bushveld Minerals believes there is strong potential for an imminent and significant global vanadium demand surge from the fast-growing energy storage market, particularly through the use and adoption of Vanadium Redox Flow Batteries.
While the Company's focus is on the vanadium operations and the development and promotion of VRFBs it has additional investments in coal, power and tin.
The Company's approach to project development recognises that, whilst attractive project economics are imperative, they are insufficient to secure capital to bring them to account. A clear path to production within a visible timeframe, low capital expenditure requirements and scalability are important factors in ensuring a positive return on investment. This philosophy is core to the Company's strategy in developing projects.
Detailed information on the Company and progress to date can be accessed on the website: www.bushveldminerals.com.
About Vametco
Vametco is located near Brits on the Western Limb of the Bushveld Complex. The integrated operation comprises a vanadium ore mine and a processing plant that produces Nitrovan®, a trademark product sold in major steel markets across the world. The mine lies adjacent to the Brits Vanadium Project, which will in future serve as an alternative source of near surface run of mine (ROM) ore feed to the Vametco plant.
The Vametco mining operation uses open pit bench mining methods to mine a well-defined orebody. The deposit is continuous with limited faulting and dips in a northerly direction at approximately 19 degrees.
ROM ore is fed into a primary, secondary and tertiary crushing circuit, followed by milling and magnetic separation to produce magnetite concentrates. The magnetite concentrates are fed into the extraction process which includes the kiln for roasting followed by leaching and precipitation. Thereafter the precipitated vanadium as ammonium metavanadate is converted to modified vanadium oxide (MVO) in rotary calciners. MVO is fed into the mix plant and finally into the shaft furnaces to produce NitrovanTM.