London, April 29th (Argus) - Australian-listed company Vanadium Resources (VR8) has signed a non-binding agreement to supply USV (Vandium Industry Holdings) with the vanadium-containing slag produced by its planned key mineral smelting plant (V-Iron plant).
VR8 will supply USV with all the output of the V-Iron plant, which will process high-grade vanadium-titanium magnetite from the Steelpoortdrift project under VR8's ownership in South Africa. The Steelpoortdrift project is located in the Bushveld Complex and is one of the largest vanadium resource-rich areas outside China and Russia, with a vanadium pentoxide resource of 4.74 million tons.
USV recently confirmed through tests that the high-grade vanadium slag produced from the Bushveld Complex ore is highly compatible with its production facilities.
The V-Iron plant will also produce pig iron.
The two parties plan to negotiate and sign a binding purchase agreement after completing the feasibility study of the V-Iron plant. If no agreement is reached, VR8 will grant USV the matching right, meaning USV can quote against any third-party offer and lock in a 20% purchase agreement for the vanadium slag output of the plant.
