Vanadium producer Bushveld Minerals has received approval from the Competition Commission of South Africa to acquire several vanadium manufacturing assets.
In May, the company signed a business and share purchase agreement with Vanchem Vanadium Products (VVP), a subsidiary of Duferco Vanadium Investment (Duferco), South African Japan Vanadium Proprietary (SAJV), a subsidiary of VVP and Duferco Participations to acquire the primary vanadium processing assets of Vanchem Vanadium plant.
Bushveld said the Vanchem Plant and SAJV business will jointly be referred to as the Vanchem business.
The transaction is expected to be completed in October, subject to the satisfaction of outstanding conditions and South African Reserve Bank approval.
Bushveld is in talks with local banks for a debt facility to boost its existing cash resources.
The company said that it will provide further updates and progress on the satisfaction of the remaining conditions and noted that approval of the debt facility will be provided accordingly.
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Bushveld Minerals CEO Fortune Mojapelo said: “Competition Commission approval marks yet another key milestone in closing this exciting transaction.
“We remain on track to complete the acquisition within our targeted timeframe, at which point we will have significantly increased our processing capacity, giving us the ability to unlock even more of our existing large high-grade resource base and produce a diverse array of products for the steel market, chemical industry and energy storage sector.”
The vanadium platform of Bushveld includes a 74% controlling stake in Bushveld Vametco Alloys, a primary vanadium mining and processing company, the Mokopane vanadium project and the Brits vanadium project.
Bushveld’s Mokopane vanadium project is intended to become a primary source of feedstock for the Vanchem business, which consists of integrated vanadium extraction and production facilities that can produce a range of vanadium products.
The Vanchem business is estimated to achieve a steady state production of 4,200mtV per year after refurbishment.