Aim-listed vanadium producer Bushveld Minerals on Thursday announced that all outstanding conditions to the Vanchem and Ivanti acquisition had been fulfilled, effecting the $53.5-million transaction.
Bushveld Minerals acquired the Vanchem plant from Vanchem Vanadium Products (VVP) – a subsidiary of Duferco Vanadium Investment Holding. The company also acquired South African Japan Vanadium Proprietary – a subsidiary of VVP – and all shares of Ivanti Resources from Duferco Participations Holding.
Bushveld Minerals’ South African subsidiary Bushveld Vanchem Proprietary will take over VVP’s existing senior production team, which will provide operational stability while Vanchem is integrated into Bushveld Minerals.
The company has appointed André Strydom GM of Vanchem.
The Vanchem team will complement the Vametco team's skills and knowledge, which will support cross-pollination of vanadium expertise and experience, as well as unlock multiple synergies across Bushveld Minerals’ Vametco, Vanchem and Mokopane operations.
“The acquisition places the company in an advantageous position to offer an attractive and diverse suite of vanadium products capable of servicing the steel and chemical sectors and the burgeoning energy storage market. We are now able to fine-tune the plan for these assets and then provide, in due course, a comprehensive strategy to our stakeholders.
“As we come towards the end of 2019, we have laid the groundwork for a strong 2020, which will see Bushveld Minerals strengthening its competitive position as the leading vertically integrated primary vanadium producer,” commented Bushveld Minerals CEO Fortune Mojapelo.
Meanwhile, Bushveld Minerals produced 561 t of Nitrovan magnetite concentrate in the third quarter, which was 24% less than the 742 t produced in the second quarter, owing to planned maintenance.
The maintenance programme was completed in 22 days, and two days ahead of schedule.
Subsequent to the implementation of the maintenance programme and in line with the company’s transformational programme, Vametco has completed the initiatives to increase crusher and mill availability, increase throughput rates, increase kiln availability and hourly feed rate, increase recoveries and improve leach plant recoveries.
Vametco is on track to meet its production guidance of between 2 800 t and 2 900 t for the full-year.
The company is finalising the required documentation to execute the mining right of the Mokopane vanadium project and will publish a maiden mineral resource estimate for the Brits vanadium project along with its fourth quarter operational update.
Bushveld Minerals’ mineral resources and processing facilities are all situated within the Bushveld Complex in South Africa.