30th May 2023 | Mining News
Australian Vanadium Limited (ASX: AVL), has made a significant step forward in its strategic development plan by securing a $49 million grant from the Australian Commonwealth Government. The grant, which forms part of the Modern Manufacturing Initiative – Manufacturing Collaboration Stream, will be employed to advance AVL’s Australian Vanadium Project.
Regarded as one of the globally most advanced critical mineral vanadium projects, the Australian Vanadium Project boasts the potential to produce an impressive 11.2kt per annum of vanadium pentoxide over an estimated mine life of over 25 years.
The grant funding will support AVL in its collaboration with industry partners to establish a burgeoning Australian vanadium battery industry. This objective will be achieved through the construction and commissioning of a concentrator and high-purity vanadium processing facility, which has the capability to use green hydrogen as part of the extraction process for the Project.
As part of the extraction process, AVL will collaborate with Bryah Resources Limited (ASX: BYH) to explore economic methods of extracting cobalt, nickel, copper, and gold from the Project.
Broadly speaking, the grant covers all stages of the vanadium production value chain, from mining and concentrating to vanadium processing for use in electrolyte production, a key enabler for the Australian vanadium redox flow battery industry.
Graham Arvidson, CEO of AVL, comments on the recent achievement, “AVL has been working closely with the Australian Government and we are pleased to announce the execution of the Agreement. The Grant will be of great benefit to AVL as we seek to optimise and finalise our financing and offtake arrangements and continue to move the Project forward for the benefit of the mid-west region of Western Australia, and Australia more broadly.”
The agreement has a start date of 29 May 2023 and will continue until 31 July 2026. The Grant will be paid progressively over the term of the Agreement, subject to milestones and compliance by AVL with its obligations under the Agreement. An initial payment of $9.8 million is scheduled to be received by AVL in June 2023, followed by three further payments, with the final payment scheduled for August 2025.
This landmark development for AVL further solidifies the company’s commitment to driving forward the Australian Vanadium Project, adding another string to the bow of its comprehensive vanadium value chain approach, and paving the way for Australia’s burgeoning vanadium battery industry.
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