Richmond Vanadium Technology progresses Richmond-Julia Creek Project amid growing vanadium importance

  • Thursday, April 25, 2024
  • Source:ferro-alloys.com

  • Keywords:Ferroalloy, Vanadium, Molybdenum, Tungsten, Manganese Ore, Chrome Ore,Iron Ore
[Fellow]Richmond Vanadium Technology progresses Richmond-Julia Creek Project amid growing vanadium importance

[Ferro-Alloys.com] Richmond Vanadium Technology Ltd (ASX:RVT) continues to progress its 100%-owned Richmond-Julia Creek Vanadium Project in North Queensland as the importance of vanadium in the global energy transition grows and a new critical minerals industry for Australia develops.

Richmond-Julia Creek is well-placed to feed growing demand as it is one of the world’s largest undeveloped oxide vanadium resources with a mineral resource of 1.8 billion tonnes at 0.36% vanadium pentoxide (V2O5) for 6.7 million tonnes and an ore reserve of 459 million tonnes at 0.49% V2O5 for 2.25 million tonnes.

Government commitments

It is also expected to benefit from the commitments by governments to support the critical minerals industry and RVT is working with all levels of government and international partners to ensure value is created along the entire supply chain.

The Queensland Government has embraced vanadium as part of its Critical Minerals Strategy and is making significant investment in key critical minerals infrastructure projects with RVT’s project awarded ‘co-ordinated project’ status by the government’s Office of the Coordinator General (OCG) in 2022.

At a national level, the Federal Government has also released its Critical Minerals Strategy.

RVT, which regards itself as a key industry partner with other vanadium developers, said: “Together, we have a common goal to educate and engage the wider population on the opportunity and necessity of vanadium for stationary battery energy storage systems.”

BFS timeframe extended

Following a detailed review of initial results from all work programs and the current vanadium market, RVT has extended the timeframe to complete the bankable feasibility study (BFS) for the Richmond-Julia Creek Project by six months to the June quarter of 2025.

Regulatory approvals and a final investment decision are expected in the September quarter of 2025.

Extensive geological, mineralogical and metallurgical test work began early in 2023 at four laboratories in China and Australia with key elements of the BFS beginning in the June quarter of 2023.

The first step was the appointment of DRA Global as the engineering services consultant and Epic Environmental as lead consultant to deliver the Environmental Impact Statement (EIS) under the terms of reference released in April 2023.

The timeframe extension has been driven by several internal and external factors including:

Expected delays in securing essential services including power, water, reagents, transport logistics and critical non-process infrastructure;

Additional mineralogical and metallurgical test work including pilot scale testing at the planned Queensland Resources Common User Facility in Townsville;

Further infill drilling across the resource base and sampling for industrial scale test work and provision of concentrate and final product samples for potential offtake partners;

Identification of the type of ore that performs best in our existing process flowsheet;

Refining and optimising the process flowsheet and its location, detailed engineering design, equipment selection and updated capital and operating costs in a volatile cost environment;

Completing baseline environmental monitoring, technical field work and regional socioeconomic evaluation in partnership with Critical Minerals Queensland and the OCG; and

Current vanadium market dynamics that are expected to grow significantly from 2026 onwards driven by the global adoption of flow batteries for long-duration energy storage.

EIS and ESG work

Meanwhile, work on the EIS continues led by Epic Environmental Pty Ltd focusing on anticipated impacts of the project on the environment and local communities, as well as proposing avoidance, mitigation and offset measures.

Work undertaken during the March quarter included:

Commencement of Social Impact Assessment, Cultural Heritage and Traffic & Transport studies;

Terrestrial flora and fauna, aquatic ecology & stygofauna surveys;

Air quality surveys and commencement of greenhouse gas (GHG) & decarbonization study; and

Continuing community and government engagement program.

RVT continues to progress its Environmental, Social and Corporate Governance (ESG) journey including focus areas outlined in the company’s 2023 Annual Report.

It has adopted the globally recognised World Economic Forum (WEF) Environmental, Social and Governance framework, which includes core SASB and GRI metrics, Science Based Targets, GHG Protocol and the Task Force on Climate-related Financial Disclosures (TCFD) as the framework to achieve long term sustainability.

ESG activities for the March quarter included:

Policy updates and Material Risk Review completed.

Draft GHG assessment methodology completed and establishment of GHG reduction and timeframes associated with mitigation are under development.

Review of International Sustainability Standards Board (ISSB): International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards. These new standards require companies to disclose material information on all sustainability-related risks and opportunities that could reasonably be expected to affect their prospects.

Work programs

During the March quarter, RVT completed its forecast timing of work programs for 2024-2025 and this includes further infill drilling, mineralogical and geological modelling, starting with a drilling program within the Rothbury mineral resource area. The programs include:

Continuation of extensive metallurgical test work at laboratory and pilot plant scale;

Further infill drilling, mineralogical and geological modelling;

Updated mine design, economic evaluation and Mining Lease application;

Refinement and optimisation of the concentrator and recovery plant flow sheets;

Securing key infrastructure and services including power, water, reagents and labour;

Detailed process design, engineering, equipment lists and tender packs;

Updated capital and operating costs and assessment of locations for plant infrastructure;

Baseline environmental monitoring and EIS preparation; and

Vanadium market assessment and negotiation with potential offtake partners and financiers.

The timetable to complete these works has been extended with completion of the BFS and approvals expected in the June quarter of 2025.

Vanadium demand

Demand for vanadium has historically come from the steel and specialty alloy industry accounting for more than 90% of production with current supply dominated by China, Russia and South Africa.

Future demand growth is forecast to be driven by the global adoption of the vanadium redox flow battery (VRFB) that is in mainstream use around the world stabilising existing power grids and storing renewable energy.

These large utility-scale long-duration battery energy storage systems (BESS) are seen as a key solution for the energy transition.

VRFBs are fully scalable, have no risk of fire or explosion, have a long life of over 25 years and are recyclable with the vanadium electrolyte having an infinite life. As battery production and scale ramp up, the latest generation of VRFBs are also the lowest cost on a levelised cost of storage basis.

New sources of supply will be required if global energy transition targets are to be met.

  • [Editor:tianyawei]

Tell Us What You Think

please login!   login   register
  • Buy & Sell

 
Please be logged in to comment!