An Australian exploration company, owning one of the most significant vanadium resources currently in the world, has signed an agreement that will see the company unlock enormous potential from the Chinese market.
Australian Vanadium announced this week that it has signed and MOU with Chinese steel and alloy product company Win-Win Development Group.
Win-Win is currently developing a 5,000 tpa vanadium production line, which requires around 7,000-8,000 tpa of 98% V2Os – which is where the MOU with AVL comes into play.
The MOU focuses co-operation in the following areas;
• Finance and investment in the Gabannintha Project
• Offtake and supply of vanadium products (specifically vanadium pentoxide - V2O5) to Win-
Win related production facilities in China
• General collaboration on marketing of vanadium products inside China
The timing of the deal is crucial for AVL as it provides access to one of the biggest markets for vanadium and comes at a time in which the company is actively exploring the Chinese market for strong opportunities to strike key partnerships.
Vincent Algar commented, ‘The Win-Win team are fully in-tune with the needs of the vanadium alloy market in China. Their development plans will set them up as a significant supplier of VCN to feed the rising demand for this feedstock as the new rebar standards are implemented. Win- Win has undertaken due diligence and identified AVL’s Gabanintha project as the one most likely to be able to provide the grade and quantity of product they require for the future.
The addition of a substantial agreement with a steel and alloy producer creates a firm foundation with which Gabanintha can participate in the most established market for vanadium.
We look forward to continuing discussions around the financing and development of the Gabanintha Project.’