공시 • Jul 03
Technology Metals Australia Limited Provides an Update on the Development Progress on Yarrabubba Iron-Vanadium Project and Gabanintha Vanadium Project
Irrespective of these impacts the Company remains focused on the delivery of the Yarrabubba DFS during Fourth Quarter this year. Technology Metals is progressing engagement with a broad range of counterparties in regards to product offtake, project development and funding, and technical collaboration. Yarrabubba is a major breakthrough for the Company, providing two product streams the high grade, high purity iron (+vanadium) concentrate and the titanium by-product and delivering potential for a low risk, lower entry cost project that is complementary to, and expected to reduce funding and implementation risk for, Gabanintha. Engagement with Sinosteel is progressing with regard to potential for long term offtake of the high grade, high purity iron (+vanadium) concentrate, supported by the high level of technical collaboration that has take place between the Company's technical team and Sinosteel Equipment & Engineering Co. Ltd. Early stage discussions have also been held with other potential end users that have approached the Company with ahigh level of interest in the high grade, high purity iron (+vanadium) concentrate product. The Company is also progressing opportunities with potential end-users of the YIP1 titanium by-product, as assessed by TZMI, a global, independent consulting and publishing company with extensive experience in the mineral sands, titanium dioxide and coatings industries. TZMI's assessment of the YIP1 ilmenite product indicates that China would be the preferential market for the product, with a range of potential end-users demonstrating a high level of interest in the product. A representative sample of YIP1 is expected to be provided to a range of prospective customers in the current quarter to facilitate the commencement of discussions regarding product offtake. The Company referred the GVP to the WA Environmental Protection Authority in November 2018, with the EPA determining that the GVP will undergo a formal environmental impact assessment with no public comment period. A range of environmental field surveys were completed between 2017 and 2020 designed to address the key environmental factors in relation to the development of the GVP. The compilation of all of the data collected and preparation of a final draft Environmental Review Document was completed early this year, with a final draft of the ERD submitted to the EPA in early March 2021. Feedback from the EPA and other decision-making authorities on the final draft ERD has been received, with the Company and its environmental consultants having completed a review of the feedback and participated in a constructive consultation process with both the EPA and the key DMA's. Based on the feedback received and the consultation process, an updated ERD addressing the matters raised is being prepared and is to be submitted for formal review in the current quarter. The Company entered into a binding vanadium pentoxide Offtake Agreement with CNMC (Ningxia) Orient Group Company Ltd. over vanadium production from GVP in April 2020. CNMNC's vanadium alloy production business, CNMC Ningxia Orient Group Special Materials Co. Ltd., produces vanadium nitrogen alloys and ferrovanadium for use in the Chinese steel industry. The Agreement covers a minimum annual quantity of V2O5 to be purchased of 2.000 Tpa on a take or pay basis with an agreed pricing structure and an initial three year term, with an option to extend for a further three years. Under the Agreement a range of conditions precedent were to be either satisfied or waived by TMT by 30 June 2021. CNMNC and the Company have agreed to a 12 month extension on the binding vanadium pentoxide Agreement, such that the satisfaction or waiver of the conditions precedent has now been extended to at least June 30, 2022. The vanadium market has been strengthening consistently over the course of 2021 as global economies have been progressively emerging from COVID-19 restrictions and stimulus spending has begun to drive increased demand for vanadium. The European V2O5 price was relatively stable in the low to mid US$5/lb range for the second half of calendar 2020, however it has shown consistent improvement in the first half of calendar year 2021, finishing the period at US$8.75/lb. The Chinese V2O5 price has mirrored this improvement, reflecting a balancing of the supply demand fundamentals of the vanadium market. Chinese domestic demand has consistently exceeded domestic supply, driven by the continued growth in steel production and the intensity of use of vanadium in Chinese finished steel products, particularly rebar, and rapidly increasing consumption in vanadium redox flow batteries. Supply was supplemented with imports in over the course of 2020 and in to early 2021, however these imports declined as ex-China economies began to emerge from the COVID-19 pandemic. This set of circumstances has resulted in the consistent improvement in global vanadium prices, which is expected to continue for some time reflecting the limited potential for supply side response without the development of new vanadium mining projects, such as Yarrabubba and GVP. The Company is ideally placed to respond to this demand driven market, with a DFS completed on the Tier 1 high grade, low cost, large scale, long life GVP and a DFS nearing completion on the high grade, high purity iron (+vanadium) concentrate plus titanium by-product Yarrabubba.