Neometals Ltd (ASX: NMT) has successfully completed a Feasibility Study (FS) on the recovery of high-purity vanadium pentoxide (V2O5) from high-grade vanadium-bearing steel by-product (Slag). The FS was completed with assistance from leading Nordic engineering group Sweco Finland Oy.
Highlights
• Feasibility Study confirms improved Net Present Value (NPV) compared to Preliminary Feasibility Study (PFS) to recover vanadium pentoxide (V2O5) from vanadium-bearing steelmaking by-products in Finland;
• Strategically important average annual production (excluding ramp up) of 19.1 million pounds per annum (~8,655tpa) of potentially carbon negative high-purity V2O5 secured by 10-year supply agreement with Scandinavian steelmaker SSAB;
• Lowest quartile cash cost (US$4.19/pound), excl. royalty, with potential to lower with by- product/carbon credits;
• 40% increase in pre-tax NPV10, to US$323M compared to PFS1 and pre-tax IRR of 24.8% on 100% ownership basis; and
• Final Investment Decision on schedule for June 2023, subject to finance.
Neometals is a 50% shareholder in an incorporated joint venture company, Recycling Industries Scandinavia AB (RISAB). RISAB is evaluating the feasibility of constructing a facility to process and recover high-grade V2O5 from vanadium-bearing steel making by- product generated by SSAB EMEA AB and SSAB Europe Oy in Scandinavia.
“Neometals is encouraged by the outcomes of the FS. Importantly, increased evaluation detail and cost accuracy has not seen a significant departure from prior cost studies,” Managing Director, Chris Reed, said.
“VRP1 remains in the first quartile of the operating cost curve and since the historical PFS, the sector tailwinds behind this project have increased markedly. With our newly expanded 300ktpa feed rate and some updated data since the last cost study, the FS highlights the significant opportunity that exists.
“Specifically, that opportunity is to deliver some of the highest-grade, lowest-cost vanadium chemicals globally with a carbon-negative footprint. Security of supply is a key issue globally, particularly so in the EU where battery material resilience is the topic du jour.”
Background
The FS which assumes a 300,000tpa feed rate and incorporates updated data from the previously announced Class 3 Engineering Cost Study (ECS). VRP1 aims to produce high purity carbon- negative V2O5 without the need to build a mine and a concentrator like existing primary producers.
Neometals’ wholly owned subsidiary Avanti Materials Ltd (Avanti) has developed a proprietary processing method to recover high purity V2O5 from steel Slag (VRP Technology). This hydrometallurgical process utilizes conventional equipment and operates at atmospheric pressure and mild temperatures. Pilot Plant testing of the selected flowsheet was completed in Perth and resulted in product purities of greater than 99.5% V2O5 with maximum vanadium recoveries exceeding 75%.
The information from the operation of the Pilot Plant was utilised to inform the FS (-15% +15%) for a 300,000dtpa hydrometallurgical processing circuit.
The FS was based on establishing an operation at Tahkoluoto Port, Pori in Finland. This location has excellent infrastructure, including a deep-water port and was chosen after the completion of an extensive location study.
The VRP1 offers a compelling business case which is underpinned by:
• Access to very high-grade vanadium feedstocks without upstream mining costs/risk;
• Potentially robust economics;
• Processing flowsheet utilises conventional equipment at atmospheric pressure mild temperatures and non-exotic materials of construction;
• Negative greenhouse gas footprint given the absence of mining and a processing route requiring the use and potential capture CO2; and
• Potentially saleable carbonate by-product which minerally sequesters CO2.
For further information please visit: https://www.neometals.com.au/
