AVL sets 2025 goal for vanadium project start

Australian Vanadium Limited has flagged a 2025 start for the construction of its $450 million processing plant in Geraldton.

The proposed plant comprises a vanadium pyrometallurgical and hydrometallurgical processing plant, concentrate and materials storage, laydown areas, processing and evaporation ponds, internal access roads, and a temporary construction camp.

In the development application lodged to the state government’s State Development Assessment Unit pathway, AVL sought a minimum timeframe of 24 months for substantial commencement of the project.

AVL previously estimated the proposed plant, to be built along Geraldton-Mt Magnet Road in Tenindewa, would be operational by 2023.

However, AVL chief executive Graham Arvidson said the company was unlikely to break ground on the project this year ahead of a merger with Technology Metals Australia.

“The project is expected to have funding in place by the end of Q3-Q4 2024, with a commencement timeline for construction to start early 2025 (subject to all relevant approvals),” the application reads.

“Environmental approvals will be required prior to commencing construction, which may extend beyond the target commencement date.

“The estimated cost of development is $450 million, with construction expected to commence within eighteen to twenty-four months of approval being received.”

Vanadium concentrate from a mine site near Meekatharra will be processed into a flake vanadium product at the proposed processing plant, according to AVL’s application.

Processed vanadium can be used in manufacturing renewable energy batteries, aerospace parts, and alloy steels used in construction.

“AVL’s strategy is underpinned by the steel market which has increasing demand for vanadium, whilst securing the long-term viability of the project by delivering products to both the steel and battery markets,” the application said.

“AVL’s vision is to supply its high-grade product to battery makers worldwide, a market expected to grow significantly on the back of increased renewable energy generation.”

AVL also estimated the state government would receive $304 million in royalties with a total revenue of $9 billion over the 25-year life of the project.

In 2022, AVL completed a bankable feasibility study that found the overall mine project would cost $604 million to build.