Bushveld Minerals has unveiled a four-step plan to increase production to 8,000 metric tons of vanadium per year (mtVp.a) at its Vametco and Vanchem arms.
Studies have been carried out by METC South Africa and MSA to examine how to increase the operating rate to between 5,000 and 5,400 mtVp, which should be achieved by the end of 2022.
The studies highlighted a “significant opportunity” to reach 8,000 mtVp.a through the company’s existing operations, but said it will require $151 million in expenditure.
Bushveld outlined a four-stage expansion plan, subject to meeting certain criteria, including achieving near-term performance – which will help generate sustainable cash – at a production rate of 5,000-5,400 mtVp .has.
He also said the plan was dependent on securing sufficient funding, along with any necessary third-party approvals of economic projects.
Fortune Mojapelo, Managing Director of Bushveld, added, “While our commitment to growth remains, we only have the freedom to pursue new growth plans once we have met our production performance targets by delivering sustainable cash-generating production at the production rate of 5,000 – 5,400 mtVp.a. and improved the ability of our balance sheet to invest in this when financing has been secured.