Australian Vanadium has signed an option to build a vanadium processing plant at a site east of Geraldton, as it continues to work on a potential mining project.
Australian Vanadium has signed an option to build a vanadium processing plant at a site east of Geraldton, as it continues to work on a potential mining project.
The company said it would purchase approximately 540 hectares of land for around $5,190 per hectare, and for an initial fee of $28,000, half of which would be paid in cash and the rest in Australian Vanadium shares.
AVL said it would transport vanadium magnetite concentrate from its project, close to Meekatharra, to a new processing plant near Mullewa.
The company said a pre-feasibility study last year highlighted the potential to relocate the plant, which would reduce capital and operating expenditure for gas supply for its vanadium project.
Without the need for large volumes of natural gas for processing, electricity at the site could be provided by hybrid power systems, AVL said.
It added the relocation of the plant would also reduce water required at the mine site by approximately one third.
Managing director Vincent Algar said in a press conference today the option agreement was an important step forward for the advancement of the company’s vanadium project.
“Locating the processing plant inland from Geraldton rather than at the mine site presents opportunities, both for AVL to ensure our operation is as cost-effective as possible, but also for Geraldton and the surrounding communities in the Mid-West of Western Australia,” hesaid.
“We estimate that more than 100 jobs will be created at the plant and it is anticipated many of those will be taken up by regionally based personnel.
“That figure is estimated to be over 200 during plant construction and 100 ongoing.”
Mr Algar said over 100 jobs would also be available at AVL’s Meekatharra mine site and concentrator operation.
“The project is an opportunity for the Mid-West region and Australia to develop global skills and expertise in vanadium and its processing,” he said.
Mr Algar said the company had started to engage with local stakeholders in the Geraldton region.
Echoing these statements was Mines and Petroleum Minister Bill Johnston.
“This has potential to create hundreds of jobs for Geraldton and the surrounding communities, which the McGowan Government is very supportive of, as creating jobs is our number one priority,” Mr Johnston said.
Australian Vanadium shares were down 8.33 per cent to trade at 1.1 cents per share, as at 3:15pm AEDT.
