Name of the Project
Vametco and Vanchem operations expansion.

Location
South Africa.

Project Owner/s
Bushveld Minerals.

Project Description
Bushveld’s Vametch and Vanchem operations are on track to achieve sustainable production of between 5 000 t/y and 5 400 t/y by the end of 2022.

Studies have been conducted to determine the optimal path to increase production at the operations to 8 000 t/y.

In Stage 1, it is proposed that a semiautogenous grinding (SAG) mill be installed at Vametco to establish a permanent and reliable supply of feedstock for both operations in anticipation of further capacity expansion.

Stage 2 will result in the refurbishment of Kiln 2 at the Vanchem plant to increase production from 2 600 t/y to between 3 600 t/y and 3 700 t/y.

Stage 3 will entail the refurbishment of Kiln 1 to increase production from between 3 600 t/y and 3 700 t/y to between 4 600 t/y and 4 800 t/y.

In Stage 4, single kiln capacity at Vametco will be increased from 2 800 t/y to 3 400 t/y; this will result in an overall increase in group production of about 7 600 t/y to 8 000 t/y.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
The expansion will require capital expenditure of about $151-million.

Installation of the SAG mill will cost about $32.9-million. The refurbishment of Kiln 1 and Kiln 2 will cost $53-million and $37-million respectively.

The increase in single-kiln capacity will cost about $28.2-million.

Planned Start/End Date
The installation of the SAG mill is expected to take 24 months, the refurbishment of Vanchem’s Kiln 1 and 2 from 18 to 24 months, and the increase in single-kiln capacity 12 to 18 months.

Latest Developments
Bushveld Minerals has placed its principal operating subsidiary Bushveld Vametco Holdings, along with Bushveld Vametco Alloys and Bushveld Minerals SA – its South African entities – in business rescue.

A business rescue proceeding affords the South African entities protection from legal action while their future is assessed and potential plans to rescue the business are implemented.

The company has nominated Piers Marsden and Jenna Osborne of Matuson & Associates to be its joint business rescue practitioners, who are filing with the Companies and Intellectual Property Commission. 

Matuson & Associates has significant experience in business rescue, turnarounds and corporate restructures in the South African mining sector. 

"The principal conditions that have led the board to this decision are the depressed vanadium market that has resulted in [our] . . . operating at a loss for an extended period of time; the lack of cash availability that restricted the amount of maintenance and repairs that could be done at Vametco, resulting in heightened levels of plant breakdowns and production loss; historically high, long-outstanding creditor balances; and failure to procure suitable funding from existing stakeholders or third parties, despite efforts to do so," Bushveld Minerals CEO Craig Coltman has explained.

The company had, in recent weeks, announced that it was slowing down production while working to secure additional funding.

Key Contracts, Suppliers and Consultants
METC South Africa and MSA Group (feasibility and prefeasibility studies).

Contact Details for Project Information
Bushveld Minerals, tel +27 11 268 6555 or email info@bushveldminerals.com