PERTH (miningweekly.com) – ASX-listed Technology Metals has inked a memorandum of understanding (MoU) with China’s Big Pawer Electrical Technology Xiangyang Inc over a possible joint venture (JV) to produce vanadium electrolyte and undertake vanadium redox flow battery (VRFB) manufacturing in Australia.
The MoU establishes a framework for a binding vanadium pentoxide offtake agreement that would cover up to 5 000 t/y of Technology Metals’ proposed production at its Gabanintha project, in Western Australia.
“Our vision is for the very high purity Gabanintha vanadium product to play a significant role in the development of domestic VRFB industry and this MoU marks a key first step in achieving that vision. The diversification of customer base is also a key support for the development of the globally significant Gabanintha project,” said Technology Metals MD Ian Prentice.
The MoU contemplated a minimum amount of 1 000 t/y of vanadium pentoxide, on a take-or-pay basis, with pricing to be negotiated based on the average European free-on-board price, with the offtake to stretch a minimum term of five years, and would be renewable for a further five-year period.
Both parties will now work to complete a due diligence in conjunction to further refining the offtake terms.
A definitive feasibility study into Gabanintha found that the project could produce 27.9-million pounds a year of vanadium pentoxide over a mine life of 16 years. The study estimated that the project would cost $318-million to develop, and would deliver mine-life earnings before interest, taxes, depreciation and amortisation of A$4.1-billion and an estimated free cash flow of A$1.09-billion.