Australian Vanadium inks offtake-finance MoU with Chinese Win-Win Development Group
Date: Jun 28, 2018
Australian Vanadium has signed a memorandum of understanding (MOU) with Chinese steel and alloy company Win-Win Development Group for vanadium offtake from Gabanintha, Western Australia.
Chengdu-based Win-Win plans to use Australian Vanadium’s product to make vanadium carbon nitrate (VCN) for use as a component in micro-alloy rebar production.
The company is constructing a 5000 tonnes per year (t/y) production facility for the VCN, which will require around 7000–8000t/y of vanadium oxide (V2O5). The first stage of the project (2000–3000t/y) is expected to begin operation in 2019 and the second stage in 2020.
The timing of the Win-Win agreement aligns with Australian Vanadium’s development of its Gabanintha vanadium project.
In addition to the the project’s current high-grade measured, indicated and inferred levels of 10.2 million tonnes (Mt) at 1.06 per cent V2O5, 4.8Mt at 1.04 per cent V2O5 and 77.8Mt at 0.94 per cent V2O5, the company has also discovered cobalt potential at the site from drilling assays.
