Bushveld Minerals has unveiled a four-stage plan to boost production towards 8,000 metric tonnes of vanadium per annum (mtVp.a) at its Vametco and Vanchem arms.
Studies were carried out by by METC South Africa and MSAto examine how to increase the run rate of between 5,000 and 5,400 mtVp.expected to 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 US$151mln of expenditure.
Bushveld outlined a four-stage expansion plan, subject to some criteria being met including meeting short-term performance - which will help deliver sustainable cash - at the production rate of 5,000 - 5,400 mtVp.a.
It also said the plan depends on sufficient funding being secured, accompanied by any necessary third-party approval of economic projects.
Fortune Mojapelo, Bushveld chief executive, added: "Whilst our commitment to growth remains, we have the liberty to pursue the new growth plans only once we have achieved our production performance targets on delivering sustainable cash-generating production at the production rate of 5,000 - 5,400 mtVp.a. and improved our balance sheet capacity to invest in such when funding has been secured.”