Bushveld Minerals, an integrated primary vanadium producer, has acquired Vanchem Vanadium Products.
The Vanchem plant is a primary vanadium producing facility with a beneficiation plant capable of producing various vanadium oxides, ferro-vanadium and vanadium chemicals. It is located approximately 200 km from the companys Mokopane Vanadium Project.
The Vanchem business provides immediate production growth, adding an estimated 960 mtV on an annualised basis using one of the three kilns on site and is expected to achieve a steady state production of 4,200 mtV per annum following refurbishment.
Refurbishment costs are expected to be approximately $45 million and will be incurred over a five year period from the completion of the transaction. Capital expenditure requirements associated with developing Mokopane are estimated to be $20 million.
Bushveld Minerals CEO, Fortune Mojapelo commented: It is with great pleasure that we announce another transformative acquisition for Bushveld Minerals and its shareholders. True to our previously stated goals, we are pleased to conditionally acquire another brownfield operating asset on South Africas Bushveld Complex, to cement our position as one of the leading vanadium producers globally and setting us on the path to achieving our 10,000 mtV per annum production capacity target.
"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.
This acquisition is core to our growth strategy of becoming a leading, low-cost, vertically integrated producer and our ability to adequately supply the burgeoning energy storage sector, he concluded.
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