Australian interest in uranium ‘on the rise

BHP’s Olympic Dam complex is the second largest uranium-producing mine in the world

Despite possessing some of the largest uranium resources in the world, unstable prices and state-wide regulatory impediments have prevented the Australian industry from reaching its full potential, says GlobalData. Now, miners are beginning to back its recovery as demand picks up and inventory falls.

“The global uranium market has been relatively uncertain in recent years,” says Global Data’s mining technology writer, Scarlett Evans. “A recent report released by the World Nuclear Association (WNA) said that an oversaturated market led to a general decline in production, reducing globally from 62,200 tonnes in 2016 to 53,500 tonnes in 2018. Prices have also been seen to drop from a January 2019 average of $28.90 a pound to $25.30 a pound in August.

“However, the same report found a change in global policies is marking a favourable return for the material, a shift many hope will be echoed in Australia. With a history of regulations blocking the use of nuclear power, the Minerals Council Australia (MCA) has this year revitalised the debate over utilising this resource, and mining company Boss Resources has recently unveiled plans to revive their South Australian Honeymoon project. While the benefits of harnessing nuclear remain contested, there is a sense that change is beginning to be seen.”

“While the benefits of nuclear remain contested, there is a sense that change is beginning to be seen”

Ian Hore-Lacy, senior advisor at the World Nuclear Association, told GlobalData: “The current state of nuclear power in Australia is zero. There is none and there are no immediate prospects of any. However, quite apart from that, there is widespread support for uranium mining and export, and that has been ongoing really since the Fox enquiry in the 1970s.”

GlobalData’s Evans concludes: “It would seem such calls are beginning to be heard, with a number of legal developments in the country over the past decade. Commonwealth support for uranium mining, the lifting of bans on uranium mining in Western Australia and Queensland, and the New South Wales Government’s repeal of the ban on uranium exploration have sparked optimism amongst industry members. Public support for nuclear energy has also been found to be on the rise, with recent surveys showing a majority of Australians support a role for nuclear in the nation’s energy mix.”

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Record year for Largo Resources

Largo Resources has released fourth quarter and full year 2019 production results from its Maracás Menchen Mine in Brazil, highlighted by a new annual production record of 10,577 tonnes of vanadium pentoxide (V2O5), an increase of 8% over FY 2018.

The company also produced 3,011 tonnes of V2O5 in Q4 2019, which is an increase of 16% over Q4 2018. Increased production is attributed to the rampup and completion of the company’s expansion project, which concluded in December with the commissioning of the pre-evaporator and leaching, desilication and precipitation tanks.

Management is confident that it will be able to execute on its 2020 production and cost guidance, building upon the operational successes achieved in FY 2019. Total V2O5 production for 2020 is expected to be in the range of 11,750 to 12,250 tonnes, inclusive of high purity vanadium flake and high purity vanadium powder production.

Largo’s board of directors has approved the construction of a ferrovanadium conversion plant at the Maracás Menchen Mine subject to available liquidity. Total capital expenditures for the plant are expected to be in the range of US$8 to $10 million, with $5 to $7 million being incurred in 2020.

The company says it plans to perform cooler refractory maintenance in April 2020 and therefore anticipates lower production during this month, with higher cash operating costs in Q2 2020. This downtime will also be used to perform feed rate improvements on the kiln, which is expected to increase the nameplate production capacity to 1,100 tonnes of V2O5 per month from 1,000.

“Increased production is attributed to the ramp-up and completion of the company’s expansion project”

Largo’s current offtake agreement with Glencore International expires on April 30, 2020, so the company will be responsible for its own sales and distribution directly to end-users from May 2020 onwards. Total sales in 2020 (including of V2O5, high purity V2O5, and ferrovanadium) are expected be in the range of 9,500 to 10,000 tonnes.

VPURE In a separate announcement the company introduced a range of newly developed brands for its line of vanadium products: VPURE™ Flakes, Ferrovanadium powered by VPURE, VPURE+ Flakes and VPURE+ Powder. The VPURE brand consists of highquality vanadium products which are mainly used to produce ferrovanadium and vanadium carbon nitride. VPURE Flakes have a guaranteed vanadium content of 98.5% and typical vanadium content of 99.0%.

The VPURE+ brand consists of high purity vanadium products in the form of flakes and powder. VPURE+ Flake and Powder products have a guaranteed vanadium content of 99.0% and a typical vanadium content of 99.5%. VPURE+ Flakes are mainly used in the production of master alloys. VPURE+ Powder is ideal to produce chemicals, catalysts and vanadium electrolyte used in the vanadium redox flow battery (VRFB).

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