A green commodity for the future with attractive fundamentals
- Vanadium demand is underpinned by its use in steel, which is expected to grow at a Compound Annual Growth Rate (“CAGR”) of 2.7% through to 20301.
- Vanadium increases the efficiency of the steel supply chain while reducing greenhouse gas emissions.
- VRFBs are expected to increase vanadium demand, from energy storage, by a CAGR of 56.7% by 2030.
- Supply is concentrated, constrained and limited new supply is expected from greenfield projects, given their higher barriers to entry.
- VRFB technology supports the global transition to clean energy and produces lower life cycle CO2 emissions than competing storage technologies
- Medium- to long-term market fundamentals remain attractive.
- The Company’s 549 Mt (100% basis) resource is one of the largest primary vanadium resource bases and offers significant growth potential. Bushveld Minerals’ orebodies comprise large, long-life, opencast deposits, with grades of 1.6 – 2.0% V2O5 in-magnetite, which are among the highest in the world.
- The Group owns two of the world’s four operating primary production processing facilities, which are low-cost and scalable operations.
- The Group has a diverse revenue stream from the steel, chemicals and energy markets.
Significant production growth
- Bushveld has the capacity to scale up production, increasing its share of the vanadium market.
- The Company aims to achieve a steady state production run rate of between 5,000 mtVp.a. and 5,400 mtVp.a. by the end of 2022. Studies are under way to increase production to a steady state production run rate of between 6,400 mtVp.a. and 6,800 mtVp.a. in the medium term and to a steady state production run rate 8,400 mtVp.a. in the longer term.
- Bushveld Minerals’ vertical integration strategy allows it to mine, process and manufacture vanadium-based products in a single value chain and provides flexibility to maximise sales, depending on product demand.
- The Company uses its low-cost scalable production base to build a significant downstream vanadium-based energy storage platform, thus participating in a massive, rapidly-growing industry.
- Vertical integration is key, both to ensure future vanadium demand from energy storage and to unlock significant economic opportunities for the Company across its value chain.
- The growth of the VRFB industry can support vanadium demand and contribute to minimising volatility in the vanadium price. The Group will continue to supply the steel, chemicals and energy markets to maintain its solid position throughout the commodity cycle.
Sustainability – value beyond compliance
- Bushveld Minerals is dedicated to maintaining sustainable mining and processing practices across all of its operations and projects. This includes ensuring employees enjoy a healthy and safe working environment, that it operates in an environmentally- and socially responsible manner, and that it adds value to all stakeholders.
- The Company actively promotes the principles of the circular economy. It is scaling up the necessary technical and commercial parameters to ensure that vanadium in energy storage is re-used.
- The Group is helping to reduce the environmental footprint of mining, including reducing the carbon intensity of its own operations.
- Bushveld Minerals is committed to delivering attractive returns to its shareholders. It applies a consistent and disciplined approach towards capital allocation to manage the Group’s growth initiatives.