Ferro-Alloy Resources Ltd chief executive Nick Bridgen talked with Proactive's Stephen Gunnion about the latest developments at its Balasausqandiq project in Kazakhstan.
Proactive: Hello, you're watching Proactive. I'm joined by Ferro-Alloy Resources chief executive Nick Bridgen. Nick, very good to speak with you. It's been a while since we last spoke. For viewers not familiar with the company, tell us a little bit about Ferro-Alloy Resources.
Nick Bridgen: It's a very large project in Kazakhstan, in the south. We have two principal products—vanadium and carbon—both of which are very interesting in their own right. Together, of course, they are fantastic.
We have a non-standard vanadium deposit, which makes it much easier and cheaper to process than standard deposits. We should be the lowest-cost producer of vanadium.
On the carbon side, we are recovering naturally occurring carbon from our tailings and concentrating it. We’ve proven that it can be used as a carbon black substitute, and it is much cheaper to produce than traditional carbon black. Our process also emits significantly less CO2.
So, in both vanadium, which does not require roasting like other projects, and carbon, we are very low CO2 emitters with very clean production. Both of these are world-class products.
Proactive: How far along is the Balasausqandiq project at this stage?
Nick Bridgen: The feasibility study is nearing completion. It has taken longer than planned due to factors like COVID and the situation in Ukraine. However, it will be completed within the first half of this year. After that, we will need to secure financing for the development phase.
Proactive: In the meantime, you signed a non-binding offtake term sheet with LL-Resources in December for vanadium pentoxide from phase one. Can you tell us more about that?
Nick Bridgen: Vanadium is a commodity that requires strong marketing due to its volatility. LL-Resources has a strong presence, particularly in Europe, with multiple production sites. They are an established trading organization, and we already have a relationship with them from our existing vanadium production.
The agreement covers up to our entire production, though we are still free to produce and market other vanadium products like vanadium trioxide (V2O3) for battery purposes. LL-Resources will handle sales for standard vanadium pentoxide (V2O5) to the extent that we require. We may also negotiate agreements with direct off-takers, but LL will manage everything from a trading perspective.
Proactive: That must give you some sense of security as you progress the project?
Nick Bridgen: Absolutely. It's great to have the support of a company like LL. The banks will also require such agreements as part of project financing. The next step is to secure a similar arrangement for our carbon black substitute.
Proactive: Tell us more about the carbon black substitute. What potential do you see, and what is it used for?
Nick Bridgen: Carbon black is primarily used to make rubber black—most of it goes into tires. It acts as a filler and reinforcement when mixed with latex in rubber production. It's a huge industry, valued at between $20 billion and $30 billion.
Our carbon material is naturally occurring and very similar in chemical and physical properties to traditional carbon black. Conventional carbon black is produced by burning hydrocarbons in a low-oxygen environment, which releases significant CO2 emissions.
In contrast, we simply recover carbon from our tailings, concentrate it, and mill it—these are very low-cost processes. Instead of consuming hydrocarbons and generating CO2, we are repurposing existing material, making our process far more sustainable.
Carbon black sells for over $1,000 per tonne, sometimes significantly more depending on the grade. Our marketing study suggests that our product should sell for over $500 per tonne, making it highly competitive.
Actually, you called it a byproduct, but we consider it a co-product because its revenue stream will likely be comparable to vanadium.
Proactive: As 2025 progresses, what milestones should investors be watching for?
Nick Bridgen: The big one is the feasibility study. We still need to finalize the capital cost estimates, the final mining plan, and the tailings dam design, but the most challenging parts are complete.
That is our immediate focus, and once completed, it should be very exciting.