Vision Blue Resources invests $125m in Sinova Global
Vision Blue Resources, a clean energy focused natural resource investor, has committed to invest up to US$125 million in Sinova Global, the Canadian silicon metal production company with operations in Canada and USA.
The proceeds will be deployed to further the development of the company’s silicon metal plant. Sir Mick Davis has been appointed Chairman of Sinova with immediate effect.
Sinova aims to become a leading North American supplier of ultra-high purity quartz from its fully permitted, world-class Horse Creek mine in British Columbia, Canada and of silicon metal from a major new manufacturing operation in Tennessee.
Both operations are in the advanced development stage and will help meet the growing demand for products which are the building blocks for the green energy transformation. These products include solar cells (for pv solar panels); semi-conductor components; aluminium used in lightweight aerospace and automotive parts; next generation batteries and battery anodes.
Sinova Global CEO Jayson Tymko said the recent announcement from Tennessee Governor Bill Lee further endorsed its plans and it is already clear that a real momentum is building to deliver on the promise of a green energy future.
“This will happen through responsible mining and the integrated manufacture of silicon metal for downstream products which secure supply for the fast-growing energy storage, green energy and automotive markets in North America," he said.
Sir Mick Davis, CEO of Vision Blue Resources, said Sinova has the potential to become a major new, North American supplier of sought-after high-purity quartz and silicon metal products that are vital to the energy transition.
"Sinova is developing a world class, high purity quartz deposit and the first new silicon metal plant in the USA in many years, giving it an enviable competitive position. The company benefits from a highly experienced management team with huge operational expertise and we look forward to working with them to rapidly develop Sinova’s operations," he said.
“Demand for silica and silicon metal is expected to grow dramatically to supply the expanding solar power and energy storage markets. At the same time supply for very high-grade feedstock, such as that produced by Sinova, is severely constrained and there is insufficient silicon smelter capacity to refine it. The location of Sinova’s operations within North America, close to high quality infrastructure provides preferential access to a captive market with significant trade protection.”
The Silicon metal market is growing at approximately 7% per year and demand expected to increase from approximately 2.7mtpa in 2020 to over 5.3mtpa by 2030.
Sinova is developing and expanding production at the historic Horse Creek quartz mine near Golden, B.C. located adjacent to the Canadian Pacific railroad for ease of transportation to North American markets and beyond. The mine is fully permitted for over one million tonnes of production of high quality and ultra-high-purity quartz that can be used in high value silicon metal production.
Material from Horse Creek requires very limited processing, creates minimal by-products and requires less energy to process relative to the material from other quartz mines. This is the result of exceptionally high levels of silica purity (and correspondingly low levels of boron, iron, phosphorous and aluminum impurities) which makes the material of particular value for industrial customers serving the high technology markets segments which fundamental to a successful clean energy transition.
The company is also establishing modern silicon metal manufacturing facility near Tiptonville, Tennessee in the Lake County Industrial Park which will be transformational for the region, create 140 new jobs and provide refined material serving the rapidly developing renewable energy, energy storage and automotive industries in the area.
More than half of North America's current demand for silicon metal is met from imports due to a lack of new silicon metal plant manufacturing development over many years.