Australian Vanadium Limited has signed a Letter of Intent with Hebei Yanshan Vanadium and Titanium Industry Technology Research (Yanshan Vanadium Titanium) to negotiate and sign a binding technical services and purchase agreement for AVL’s vanadium products.
|HBIS Vanadium Plant|
Yanshan Vanadium Titanium is a subsidiary of HBIS Group Chengsteel in China based in the Hebei province. It was set up to co-ordinate and commercialise research and development innovation in steel industry.
HBIS Group is one of the world’s largest steelmakers, with approximately 120,000 employees.
HBIS Chengsteel is currently the world’s third largest vanadium producer and has been involved in many ground-breaking projects, including the provision of more than 240,000 tonnes of vanadium-bearing anti-seismic rebars and fine steel plates for the Hong Kong-Zhuhai-Macao Bridge. The project included a 6.7km seabed tunnel which utilises HBIS Chengsteel’s steel with anti-seismic properties and a non-rust project delivery requirement.
The group produces and utilises vanadium in a wide range of its products, including earthquake rated anchors and wire for skyscraper construction, vanadium aluminium alloys for aerospace applications, and electrolyte for vanadium redox flow batteries.
Yanshan Vanadium Titanium has developed a molten salt vanadium extraction process which demonstrates innovation in vanadium extraction technology with a reduction in waste produced.
The terms of the Letter of Intent include AVL providing a product sample to Yanshan Vanadium Titanium for testing. Product specifications, price and volume are to be determined through further discussion. The document is non-binding and sets out the structure for further discussions to be undertaken. Managing Director, Vincent Algar and Chief Operating Officer, Todd Richardson will travel to Chengde, Hebei this month to progress technical and offtake discussions.
Through AVL’s online Data Room, Yanshan Vanadium Titanium has already started to undertake its due diligence of the Project and the Company.
AVL’s Managing Director, Vincent Algar explained that the Company was invited by Yanshan Vanadium Titanium to attend a conference in Hebei last year and to meet with the company.
“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,” added Mr Algar.
Yanshan Vanadium Titanium is keen to assist with the processing design for the Australian Vanadium Project. The visit to Chengde will allow Mr Richardson to undertake technical discussions regarding potential improvements to the Project’s process, which Yanshan Vanadium Titanium believes could result in cost improvements.