Neometals Inks High-grade Vanadium Recycling Agreement With Critical Metals

BEIJING (Asian Metal) 7 Apr 20 – On April 6, Australian-based Neometals Ltd. announced that it has executed a collaboration agreement with Critical Metals Ltd. to jointly evaluate the feasibility of constructing a recycling facility to recover and process high grade vanadium products from vanadium-bearing steel by-product (“Slag”) in Scandinavia (“Slag Recycling Facility”). Neometals will fund and manage the evaluation activities, which, if positive, will lead to a 50:50 incorporated joint venture (“JV”). Neometals is Critical Metals’ largest shareholder and holds 15.4% of its issued capital.

Critical Metals has executed a conditional agreement (“Slag Supply Agreement”) with SSAB EMEA AB and SSAB Europe Oy, subsidiaries of SSAB, a steel producer that operates steel mills in Scandinavia. Slag is a by-product of SSAB’s steel making operations. The Slag Supply Agreement provides a secure basis for the evaluation of a potential Slag Recycling Facility capable of processing 200,000 tonnes of Slag per annum without the need to build a mine and concentrator like existing primary producers.

According to the Slag Supply Agreement, the minimum volume of Product to be delivered to Critical Metals in each contract year during the supply period is 200,000 dry metric tonnes (“dmt”). The supply period will begin on the commencement of commercial production at the Slag Recycling Facility (which must not be later than 31 December 2024). The Term of the Slag Supply Agreement is ten years from the commencement of commercial production. If the JV makes a positive investment decision to construct a Slag Recycling Facility, Critical Metals must prepay SSAB for the first 700,000 dmt of Product to be supplied from Lulea.

Neometals anticipates approximately 27 months for completion of the Joint Studies with a final investment decision occurring within 6 months after completion of the Class 3 feasibility study.