AVL advances potential offtake and project investment deal with world’s #3 vanadium producer
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Special Report: Australian Vanadium (ASX:AVL) is progressing serious vanadium offtake and/or project investment discussions with a subsidiary of China-based HBIS Group Chengsteel, the world’s #3 vanadium producer.
A Letter of Intent (LOI) has been signed with Yanshan Vanadium Titanium to negotiate and sign a “binding technical service and purchase agreement” for AVL’s vanadium products, the company said today.
This is a big deal. HBIS Chengsteel is part of leading steelmaker HBIS Group, which had almost 120,000 employees globally in 2018.
HBIS Chengsteel alone has been involved in a number of ground-breaking projects.
It recently supplied more than 240,000t of vanadium bearing anti-seismic rebars and fine steel plates for the 55km-long Hong Kong-Zhuhai-Macao Bridge – the world’s longest sea crossing bridge.
It produces and uses vanadium in a wide range of products, including wire for skyscraper construction, vanadium aluminium alloys for aerospace applications, and electrolyte for vanadium redox flow batteries (VRFB).
Subsidiary Yanshan Vanadium Titanium is also keen to help with AVL’s Australian Vanadium Project processing design, which it says could result in cost improvements.
The Chinese firm has already started due diligence on AVL and the project through the company’s online data room.
“We were invited by Yanshan Vanadium Titanium to attend a conference in Hebei last year and to meet with the company,” AVL managing director Vincent Algar says.
“Discussions were productive and highlighted a desire by Yanshan Vanadium Titanium to become more involved in AVL’s project.
“We are now visiting Chengde this month to further these discussions and move towards a formal agreement.”