Vanadium expected to remain stable for the remainder of Q2 2021
Bushveld Minerals (AIM:BMN), the integrated primary vanadium producer and energy storage solutions provider, announced on Friday that is has successfully completed its essential maintenance work at its Vametco asset in South Africa.
The AIM-listed company said that its group sales during Q1 of 788 tonnes were down compared to 1,080 tonnes in Q1 of 2020 due to lower production volumes as a result of the planned maintenance shutdown.
The group confirmed said its guidance for the full-year is towards the lower end of 4,100 tonnes and 4,350 tonnes, while risks to this forecast exist as a result of Vametco’s challenges in achieving consistent plant performance. This is in addition to Vametco’s slower-than expected ramp-up following the maintenance shutdown, the recent industrial action, as well as risks associated with the ramp-up of Vanchem’s first phase refurbishment.
Vanadium prices have continued to rise during the first quarter of 2021 after a strong start to the year.
Prices had risen in China in the midst of the Spring Festival while in Europe, prices increased due to strong demand and tight inventories, the company said. Vanadium demand remains robust, and prices are expected to remain stable for the remainder of Q2 2021.
Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented:
“We recognise that Vametco has underperformed at times and work such as the 35-day maintenance shutdown is expected to improve on the reliability and performance issues experienced in the past. Since the industrial action and ramp-up we have seen a stable period of normalised production levels.”
“Various workstreams remain underway to maintain this stability, including maximizing safety and house-keeping initiatives, better managing process system constraints and optimizing preventative maintenance programmes. In light of Vametco’s challenges in achieving consistent plant performance during Q1 2021 as well as risks associated with the ramp-up of Vanchem’s first phase refurbishment, Group guidance is expected towards the lower end of 4,100mtV to 4,350mtV, albeit there are risks to achieving this target.”
It was reported back in April that workers at the AIM-listed company’s Vametco mine in South Africa went on a strike to protest an employee participation plan (EPP).
The strike came despite employees already signing an EPP with the Association of Mineworkers and Construction Union (AMCU).
 announced on Friday that is has successfully completed its essential maintenance work at its Vametco asset.){kind=link}