AMN - SOUTH AFRICA: Vanadium production up at Vametco

Bushveld Minerals reports strong performance from its Vametco Vanadium Project in South Africa during the March quarter. The project produced 731 mtV in the form of Nitrovan® from magnetite concentrate, which was 35.5% higher than the previous quarter and 12.9% higher than the corresponding quarter of 2017.

The Metal Bulletin vanadium price based on the FeV mid average price for the quarter was US$61.8/kgV, an increase of 58.1% relative to the previous quarter.

The company's CEO Fortune Mojapelo said: "We are pleased with the strong performance at Vametco over this period, which was underpinned by the completion of the first phase of the expansion project.

"Phase two of the expansion plan is well underway and on track, which, once complete, will enable Vametco to achieve a production capacity of 3750 mtV and further lower production costs.

"Plans for commencing phase three are progressing to schedule.

"The results of the Vametco expansion project to position us to achieve a production capacity of 5000 mtV by 2019 are coming through positively, and our previously stated 2018 guidance remains unchanged. 

"We remain focused on delivering on this important aspect of our strategy, which will allow us to take advantage of current higher prices, along with supporting our electrolyte and FeV production aspirations.

"The plans being implemented will undoubtedly further enhance our competitive position in this structurally challenged market whilst our integrated platform will allow us to develop downstream operations and product diversification."

Vametco achieved all-time record magnetite kiln feed during the quarter, supported by completion of phase one of the expansion project.

The company also has a tailings facility expansion underway which will provide capacity to continue depositing the calcines, which needs to be deposited on a H:H liner, as part of ongoing operations.

It is also undertaking a kiln off-gas project to comply with regulatory requirements and further increase kiln feed throughput.

Both projects are expected to be commissioned by the end of 2018.

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.

Bushveld's vanadium platform in South Africa includes Bushveld Vametco, Mokopane and Brits.

The company recently started an exploration program at the Brits project, which has shown positive drilling results.

This project comprises prospecting rights on several farms adjacent to Vametco, and the exploration is aimed at establishing a maiden mineral resource estimate.

www.bushveldminerals.com