Neometals Highlights Vanadium Recovery from Feasibility Study Results
THE BOURSE WHISPERER: Neometals (ASX: NMT) has completed a Feasibility Study on recovery of high-purity vanadium pentoxide (V2O5) from waste high-grade vanadium-bearing steel by-product material, known as slag.
Neometals announced completion of an Association for the Advancement of Cost Engineering (AACE) Class 3 Feasibility Study on V2O5 recovery that was completed with assistance from leading Nordic engineering group Sweco Finland Oy (Sweco).
Assuming a 300,000 tonnes per annum feed rate, the study determined average annual production of 19.1 million pounds per annum (approx. 8,655tpa) of potentially carbon negative high-purity V2O5 secured by 10-year supply agreement with Scandinavian steelmaker SSAB.
Neometals is a 50 per cent shareholder in an incorporated Joint Venture company, Recycling Industries Scandinavia AB (RISAB), which is evaluating the feasibility of constructing a facility to process and recover high-grade V2O5 from vanadium-bearing steel making by-product generated by SSAB.
Under a binding feedstock supply contract with SSAB, that company will supply two million tonnes of slag with RISAB having the first right to purchase additional tonnes on an as available basis.
“Neometals is encouraged by the outcomes of the FS,” Neometals managing director Chris Reed said in the company’s ASX announcement.
“Importantly, increased evaluation detail and cost accuracy has not seen a significant departure from prior cost studies.
“VRP1 remains in the first quartile of the operating cost curve and since the historical PFS, the sector tailwinds behind this project have increased markedly.
“With our newly expanded 300,000 tonnes per annum feed rate and some updated data since the last cost study, the FS highlights the significant opportunity that exists.
“Specifically, that opportunity is to deliver some of the highest-grade, lowest-cost vanadium chemicals globally with a carbon-negative footprint.
‘Security of supply is a key issue globally, particularly so in the EU where battery material resilience is the topic du jour.”
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