Bushveld Undeterred From Developing Mokopane Vanadium Project Despite Steel Environment

Mining Weekly reported that Bushveld Minerals (LSE:BMN) is not deterred from developing its 300 million tonnes Mokopane vanadium project despite current low price environment. The company said it sees potential for the use of vanadium in the steelmaking process as well as for vanadium redox flow batteries (VRFBs).
As quoted in the market news:

Around 0.2% of vanadium content increased steel strength by up to 100% and reduced its weight by up to 30%. Bushveld CEO Fortune Mojapelo further explained that vanadium demand was anchored in the “robust global steel market”, where the consumption outlook remained positive, owing to ongoing urbanisation and infrastructure build programmes in emerging markets, as well as the regulation-driven increase in the use of vanadium in steel production.
Meanwhile, a concentrated and limited supply growth profile in vanadium production would likely provide price support in the medium to long term.
“That 67% of supply is linked to coproduct steel producers processing relatively low-grade vanadium-bearing magnetite deposits, and operating under strained economics, presents significant threats to vanadium supply – a threat that is heightened by the opportunity for these steel plants to switch to cheaper haematite iron-ore (nonvanadium-bearing) feedstock imports.”

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