Australian Vanadium Ltd (ASX:AVL) has signed a joint co-operation agreement with the Mid West Ports Authority (MWPA) to secure future use of facilities and services at the key mid-west resources sector port facility.
The agreement will serve AVL as it moves towards approval, funding and development of the Australian Vanadium Project, which it touts as one of the most advanced vanadium projects being developed globally.
The project is a high-grade vanadium-titanium-iron mineral resource in the Murchison Province, 43 kilometres south of the mining town of Meekatharra in Western Australia and 740 kilometres north-east of Perth.
Strategic location for shipping
AVL will produce a vanadium concentrate on-site and complete production of a high-purity vanadium and an iron titanium (FeTi) co-product at a processing plant located near the port city of Geraldton.
The agreement allows AVL and MWPA to work co-operatively to define the best alternatives for the storage and shipping needs of the project. MWPA is actively planning for future growth of the port facilities and AVL will become a key long-term partner in the port’s proposed expanded capabilities.
AVL sees the generation of a FeTi coproduct for sale, in addition to the production of a high purity vanadium pentoxide product for steel and battery industries, as a key point of difference for the project.
The company’s chosen strategic location for its vanadium processing facility, near infrastructure in Geraldton, will enable the sale of the FeTi coproduct, in turn enhancing the project’s economic resilience through the addition of a secondary revenue stream.
It is hoped that the project will ship approximately 900,000 dry tonnes per annum (tpa) of FeTi coproduct through the Port of Geraldton for the 25-year life of the project.
Offtake talks in progress
AVL is in discussions to secure multiple offtake agreements for the FeTi coproduct, primarily used in blast furnace applications.
In November the company signed its first letter of intent for sale of the product to Shenglong Metallurgy International in Hong Kong, the commercial arm of Guangxi Shenglong Metallurgy Co Ltd.
The Port of Geraldton will also be used as a receiving port for AVL’s processing reagents and large break-bulk equipment needed for the processing plant and crushing, milling and beneficiation plant at Meekatharra.
Proximity to the port will also enable the company to import renewable energy hardware for both project sites.
MWPA has provided indicative quotes for AVL to access the Port at Geraldton for shipping and product storage, which enables these figures to be included in the company’s bankable feasibility study (BFS).
Long-term relationship
Through this relationship, AVL and MWPA also seek to define a long-term plan which integrates the needs of AVL with the strategic growth strategies of MWPA.
“Having confidence that MWPA will be able to directly accommodate our requirements is another big step in our pathway to production,” AVL managing director Vincent Algar said.
“Improving confidence levels in our costings and providing necessary assurances for future access and communication is a major benefit as we finalise our BFS and move towards approvals and funding.”
Acting MWPA CEO Damian Tully said: “We look forward to working with Australian Vanadium to develop the export and import capacity at MWPA to facilitate their trade requirements. This is an exciting project for us and we look forward to playing a key role in its future development.”