Offtake deal signed at Gabanintha
PERTH (miningweekly.com) – ASX-listed Technology Metals Australia has inked a binding vanadium pentoxide offtake agreement with China’s CNMC Orient Group Company at the Ganabintha vanadium project, in Western Australia.
The offtake agreement covers a minimum 2 000 t/y, or 4.4-million pounds a year, of vanadium pentoxide on a take-or-pay basis over an initial three-year term, accounting for some 16% of Gabanintha’s forecast annual production. CNMC will also have the option to extend the offtake agreement by a further three years.
The sales agreement is expected to generate some A$50-million in annual revenue, or A$300-million, over the full offtake term, based on the current vanadium prices.
“We are very pleased to have executed our first binding offtake agreement with CNMC and look forward to a long, mutually beneficial partnership,” said Technology Metals Australia MD Ian Prentice.
“The collaborative and cooperative approach of the negotiations bodes very well for the companies’ future relationship. This agreement is a key milestone for progressing the development of Gabanintha, including engineering, procurement and construction and financing discussions, and underscores the importance of delivering a very high quality definitive feasibility study (DFS) and a very high purity vanadium pentoxide product.”
A DFS into Gabanintha found that the project could produce 27.9-million pounds a year of vanadium pentoxide over a mine life of 16 years. The study estimated that the project would cost $318-million to develop, and would deliver mine-life earnings before interest, taxes, depreciation and amortization of A$4.1-billion and an estimated free cash flow of A$1.09-billion.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...
VISIT SHOWROOM
The Steel Tube Export Association of South Africa was established to develop sustainable, internationally competitive carbon steel tube and pipe...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
