Anglo-Swiss trading giant Glencore Plc said in its
preliminary 2014 results that while vanadium pentoxide
(V2O5) prices held steady in H1 2014 as
expected, this trend did not continue into the second half of
Planned Brazilian and Australian production did
not materialise last year, which helped support prices, but
this was offset by the emergence of extra Chinese
V2O5 is principally used as
a steel additive – around 90% of the market –
and has a small but growing market in the vanadium redox
battery (VRB) industry. Steel manufacturing has been slowing,
however, while VRBs are still in their infancy.
(MB) pricing database indicates that vanadium
V2O5 prices held steady in 2014 until
November, when selling values began to fall.
vanadium ore (pentoxide) (min 98% Europe), stand at between
$3.75/lb ($8.25/kg) and $4.05/lb ($8.91/kg).
Glencore produced 9,435 tonnes
V2O5 in 2014, down 4% y-o-y, owing to an
annual maintenance shutdown.
Largo signs bridging loan; VanadiumCorp
Largo signs bridging loans
Canada-based, Largo Resources Ltd has secured a
Canadian dollar (C$) 12m ($9.4m*) bridging loan for its Maracas
Menchen V2O5 mine in Brazil, which
commenced production in August 2014.
Glencore has an exclusive offtake agreement for
Maracas’ production, but the company is still
sourcing funds from other partners. Signed with Arias Resource
Capital Management, the loan facility has an interest rate of
20% per annum.
Largo said that it will need to raise more equity
capital to restructure its debt. The company plans to improve
its leaching system, which, with additional capital expenses,
will result in a bill of around C$20m for 2015.
Maracas is being ramped up to a phase one
capacity of around 800 tpm and the company is targeting 2015
production of 7,710 tonnes.
VanadiumCorp delivers 28.4m tonne
Vancouver-based VanadiumCorp Resource Inc. has
reported an inferred resource for its Lac Dore East deposit in
Quebec, Canada, totalling 28.4m tonnes magnetite concentrate
grading at 1.09% V2O5.
The company has thus far recovered vanadium
pentoxide from the resource with a 95% yield.
VanadiumCorp’s resource drew on data
from several programmes, including government drilling in 1970,
SOQUEM drilling in 1980, trenching and drilling by McKenzie Bay
Resources from 1997 to 2002, and Apella Resources, which is now
Vanadiumcorp in 2013.