Bushveld Minerals Limited (LON:BMN) has said it is pleased with the ‘strong performance’ at its Vametco vanadium operation during the first quarter of 2018, as the first phase of the expansion project was completed.
In an operational update, the AIM-listed firm said Vametco produced 731 metric tonnes of vanadium (mtV) in the form of Nitorvan, an 35.5% increase from the fourth quarter 2017, supported by the completion of phase one of the expansion project.
The company said the Metal Bulletin vanadium price based on the average mid-price for the quarter increased by 58.1% to US$61.8 per kilogram of vanadium.
The group said phase two of the expansion project ay Vametco is progressing and, once complete, will increase production capacity to 3,750 mtV.
Fortune Mojapelo, CEO of Bushveld Minerals, said:” Plans for commencing Phase three are progressing to schedule. The results of the Vametco expansion project to position us to achieve production capacity of 5,000 mtV by 2019 are coming through positively, and our previously stated 2018 guidance remains unchanged.”
He added: “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 operation and product diversification."
Bushveld said it has also commenced an exploration programme at the Brits Project, which has shown positive drilling results.