Australian Vanadium in finance, offtake discussions with Chengdu steelmaker

Australian Vanadium in finance, offtake discussions with Chengdu steelmaker

Tue, 26/06/2018 - 12:57
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AVL

Australian Vanadium managing director Vince Algar with Win-Win management in Chengdu. Photo: AVL

Chengdu-based steel and alloy manufacturer Win-Win Development Group has linked up with ASX-listed Australian Vanadium, with the two companies to discuss financing and development of the Gabanintha vanadium mine in Western Australia.

Australian Vanadium announced to the ASX that it had signed a memorandum of understanding with Win-Win, initiating discussions over project finance and a potential offtake agreement for vanadium oxide production from the mine, located near Meekatharra in the north of WA.

Win-Win is seeking supply for its vanadium carbon nitride (VCN) production line, which is currently under construction.

New Chinese standards for rebar steel requires the use of additional vanadium, with steel manufacturers forced to look outside of China due to constrained supplies.

Australian Vanadium managing director Vince Algar said VCN was the preferred alloy among manufacturers to meet the new specifications over FerroVanadium, because it requires less vanadium to achieve the same strength of material.

Win-Win is developing a 5,000 tonne per annum (VCN) production line, giving it strong synergies with the planned development of Gabanintha, Australian Vanadium managing director Vince Algar said.

“The Win-Win team are fully in-tune with the needs of the vanadium alloy market in China,” Mr Algar said.

“Their development plans will set them up as a significant supplier of VCN to feed the rising demand for this feedstock as the new rebar standards are implemented.

“Win-Win has undertaken due diligence and identified the Gabanintha project as the one most likely to be able to provide the grade and quantity of product they require for the future.”