Vanadium recovery project, Finland – update

Image of fine vanadium

14th July 2023

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor


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Name of the Project
Vanadium recovery project (VRP 1).

For the purpose of cost estimation, the Tahkoluoto port, in Pori, Finland, is the selected location for the project, with plant offices, administration, ablutions facilities and a laboratory included in the scope.

Project Owner/s
Neometals and Critical Metals.

Project Description
The project aims to process and recover high-purity vanadium pentoxide from vanadium-bearing steelmaking by-product generated by SSAB EMEA AB and SSAB Europe Oy, collectively SSAB. A Class 3 engineering cost study (ECS) has confirmed the potential for lowest-quartile operating costs for the project.

This aligns with prior outcomes from the historical Neometals prefeasibility study (PFS).  The ECS envisages an operation with a throughput of 300 000 t/y for total production of 19.01-million pounds, or 8 642 t/y, vanadium pentoxide. This compares with a throughput of 13.43-million pounds, or 6 091 t/y, vanadium pentoxide in the 2021 PFS.

Potential Job Creation
Not stated. 

Net Present Value/Internal Rate of Return
The 2021 PFS forecast a net present value, at a 10% discount rate, of $230.1-million and an internal rate of return of 31% on a 100% ownership basis, with a payback of about four years.

Capital Expenditure
Capital costs have increased from $183.4-million in the PFS to $341-million in the ECS on a 100% ownership basis.

Planned Start/End Date
Operations are due start in December 2024.

Latest Developments
Neometals, which holds a 72.5% interest in Recycling Industries Scandinavia AB (RISAB), has announced the signing of a binding offtake agreement between the developer of the VRP1 and mining major Glencore.

The offtake agreement will cover all the vanadium products produced at VRP1.

Under the terms of the agreement, RISAB subsidiary Novana will exclusively sell and deliver all saleable vanadium-bearing products to Glencore over an initial five-year period from the start of production, which will automatically extend in two-year increments unless the parties elect not to renew the offtake agreement.

The delivery period is expected to start in January 2026 or an earlier date if Glencore is notified 12 months in advance. The price paid for the vanadium will be tied to the prevailing market prices.

Key Contracts, Suppliers and Consultants
Hatch (PFS); and Sweco Industry Oy (ECS).

Contact Details for Project Information 
Neometals, tel +61 8 9322 1182 or email
Critical Metals, email

Edited by Creamer Media Reporter



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