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Fortune Mojapelo delivered the presentation at 2014 Africa Iron Ore conference. The Africa Iron Ore conference is the annual gathering for iron ore and stainless steel executives engaged in the African Region. For more information about the event, please visit: http://www.informa.com.au/africaironoreconference14
Citation preview
The Bushveld Iron Ore Project Presentation to
Africa Iron Ore Johannesburg
04 June 2014
These presentation slides (the “Slides”) do not comprise an admission document, listing particulars or a prospectus relating to Bushveld Minerals Limited (“the Company”) or any subsidiary of the Company, do not
constitute an offer or invitation to purchase or subscribe for any securities of the Company and should not be relied on in connection with a decision to purchase or subscribe for any such securities. The Slides and
the accompanying verbal presentation do not constitute a recommendation regarding any decision to sell or purchase securities in the Company.
The Slides and the accompanying verbal presentation are confidential and the Slides are being supplied to you solely for your information and may not be reproduced or distributed to any other person or published, in
whole or in part, for any purpose. No reliance may be placed for any purpose whatsoever on the information contained in the Slides and the accompanying verbal presentation or the completeness or accuracy of
such information. No representation or warranty, express or implied, is given by or on behalf of the Company, Fox-Davies Capital Limited or their respective shareholders, directors, officers or employees or any other
person as to the accuracy or completeness of the information or opinions contained in the Slides and the accompanying verbal presentation, and no liability is accepted for any such information or opinions (including
in the case of negligence, but excluding any liability for fraud).
The Slides contain forward-looking statements, which relate, inter alia, to the Company’s proposed strategy, plans and objectives. Such forward-looking statements involve known and unknown risks, uncertainties and
other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such forward-looking statements. Accordingly, you
should not rely on any forward-looking statements and the Company accepts no obligation to disseminate any updates or revisions to such forward-looking statements.
The Slides and their contents are directed only at persons who fall within the exemptions contained in Articles 19 and 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (such as
persons who are authorised or exempt persons within the meaning of the Financial Services and Markets Act 2000 and certain other persons having professional experience relating to investments, high net worth
companies, unincorporated associations or partnerships, the trustees of high value trusts) and persons to whom distribution may otherwise lawfully be made. Any investment, investment activity or controlled activity
to which the Slides relates is available only to such persons and will be engaged in only with such persons.
Persons of any other description, including those that do not have professional experience in matters relating to investments, should not rely or act upon the Slides.
The Slides should not be distributed, published, reproduced or otherwise made available in whole or in part by recipients to any other person and, in particular, should not be distributed to persons with an address in
the United States of America, Australia, the Republic of South Africa, the Republic of Ireland, Japan or Canada or in any other country outside the United Kingdom where such distribution may lead to a breach of any
legal or regulatory requirement. No securities commission or similar authority in Canada has in any way passed on the merits of the securities offered hereunder and any representation to the contrary is an offence.
No document in relation to the Placing has been, or will be, lodged with, or registered by, The Australian Securities and Investments Commission, and no registration statement has been, or will be, filed with the
Japanese Ministry of Finance in relation to the Placing or the Shares. Accordingly, subject to certain exceptions, the Shares may not, directly or indirectly, be offered or sold within Canada, Australia, Japan, South
Africa or the Republic of Ireland or offered or sold to a resident of Canada, Australia, Japan, South Africa or the Republic of Ireland.
The Securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “US Securities Act”) or with any securities regulatory authority of any state or
other jurisdiction of the United States and may not be offered or sold within the United States or to, or for the account or benefit of, any US Person as that term is defined in Regulation S under the US
Securities Act. The Company has not been registered and will not register under the United States Investment Company Act of 1940, as amended.
The Slides and their contents are confidential and should not unless otherwise agreed in writing by Bushveld Minerals Limited be copied, distributed, published or reproduced (in whole or in part) or disclosed by
recipients to any other person.
Slide 2 2
Disclaimer
3
1. Introduction
2. Bushveld Complex Context
3. Geology/Resource
4. Metallurgy/Processing
5. Development Strategy
Additional Information
Introducing Bushveld Minerals
* 4 April2014 ** 28 February 2014
AIM-listed Mineral Development Company developing projects in Africa
Developing an African focused diversified portfolio of quality assets in multiple
commodities – iron ore, vanadium, titanium, phosphate, tin and coal
Platform strategy to deliver sufficient focus
Intent: to develop projects with Favourable Cost Curve Positioning and Scale
Projects Located in Close Proximity to Mining-supportive Infrastructure, including
Rail, Power and Power
Proven team with strong credentials for project origination and development
GREENHILLS RESOURCES LTD
P-Q Iron Ore and Titanium Project
Vanadium Project
Imaloto Coal Project
New Coal Investments
Mokopane Tin Project
Marble Hall Tin Project
• 939 Mt multi-commodity resource (iron ore and titanium)
• Phosphate resource potential of >200 Mt (avg grade ~3.24% P2O5)
• World class open-castable vanadium deposit contained in 3 distinct horizons
• 52 Mt vanadium-rich magnetite deposit confirmed in only one of the 3 horizons
• 18,500 tonnes contained tin (Sn) inventory on 2 adjacent open-castable deposits
• Estimated 2,600 – 4,500 tonnes contained Sn in a recently acquired Tailings Dump
• Potential ~18,000 tonnes contained Sn resource
• Historically explored by Goldfields in the 1980’s
• 1 of only 3 thermal coal plays in Madagascar
• 136 Mt resource (JORC Measured + Indicated category)
• US$16.1 million balance sheet aimed at new acquisitions
• Targeting developed near cash flow producing assets, and early-stage exploration projects
Developing a multi-commodity Iron Ore, Vanadium, Titanium
and Phosphate company
Developing a standalone pan-
African tin portfolio with a near-term production profile
Leveraging strong balance sheet to
develop new opportunities
Company Overview Commodity-focused subsidiaries structured to deliver maximum value
5
6
1. Introduction
2. Bushveld Complex Context
3. Geology/Resource
4. Metallurgy/Processing
5. Development Strategy
Additional Information
The Bushveld Complex Context
7
• Platinum - >80% of world platinum reserves
• Chrome - >70% of world chrome reserves
Bushveld Complex is most well known for its:
But it is host to:
• >20Bn tonnes vanadium & titanium bearing iron ore
• >30% of the world vanadium grades
• >30% of the world titanium resources
And thanks mainly to the platinum and chrome mining activities, the Bushveld Complex is a well established mining district with sound mining related infrastructure in place
The Bushveld Complex Context
8
• General mining-related infrastructure in place, but geared towards the non-bulk commodities platinum and chrome
• Bulk commodity logistics infrastructure capacity still insufficient
• Sufficient iron ore and coal deposits make the business case for the infrastructure expansion
Challenges to developing the Bushveld Complex iron ore
Infrastructure
Capex
Market constraints
• Limited market opportunities from existing downstream steel players for Bushveld magnetite concentrate – most of whom are geared for direct shipping ore and/or non-titanium bearing ores
• “Dig & ship to China” model not suited to Bushveld iron ore magnetites
• Implies need for integrated downstream development approaches
• Known and proven processing technologies are in place, but implementing them requires large capex commitments, a new 1 Mtpa pig iron producing plant requires >$1bn capex
• Higher opex compared to conventional blast furnace operations
Metallurgy
• Need for downstream processing solutions capable of extracting saleableFe, V and Ti to enhance economics of overall deposits
• Proven processing precedents on the Bushveld Complex for iron ore and vanadium but not yet for all three - FE, V ad Ti
The Bushveld Complex Context
9
2. A conventional steel business model under margin pressure
• Excess capacity
• Migration of resource rent upstream, thanks in large part to the shape of the iron ore cost curve structure
But circumstances are changing ….
1. China’s diminishing power & labour cost advantages
3. Growing emerging markets steel demand
… bringing new opportunities
1. Abundant coal and gas supplies – potential for affordable power
2. Opportunity for downstream integrated multi-commodity with scope for attractive margins
3. Logistics advantages for supplying into domestic and regional markets
4. South African government prioritisation of steel sector as lever for downstream manufacturing sector development
The Bushveld Complex Context
10
25
2014
The need for pre-reduction:
Globally rising power prices
The Bushveld Complex Context
11
2. A conventional steel business model under margin pressure
• Excess capacity
• Migration of resource rent upstream, in large part due to the shape of the iron ore cost curve structure
But circumstances are changing ….
1. China’s diminishing power & labour cost advantages
3. Growing emerging markets steel demand
… bringing new opportunities
1. Abundant coal and gas supplies – potential for affordable power
2. Opportunity for downstream integrated multi-commodity with scope for attractive margins
3. Logistics advantages for supplying into domestic and regional markets
4. South African government prioritisation of steel sector as lever for downstream manufacturing sector development
The Bushveld Complex Context
12
The Bushveld Complex Context
13
1 Liquid steel refers to pre-casting/rolling product in BOF incl. by-product credits as equivalent to total cost of slabs in HRC Note: all figures based on an outside-in analysis and benchmarking subject to due diligence and confirmation. Source: CRU, Platts, Macquarie, Bryanston Research
310
475
418
630
548 523
503
452
359
538
454
Cumulative Capacity in mt
600 100 200 400 500 300
Steel Cost Curve
The Bushveld Complex Context
14
The Bushveld Complex Context
15
Keys to unlocking the Bushveld Complex Iron Ore
Details Factors in favour
• Raw materials – coke, coal, limestone et al • Infrastructure • South African government prioritisation of steel sector for
downstream development • Economics for specialty steels favour integrated plays
(distribution of resource rent)
• Excellent Co-product grades, TiO2 ~20%, V2O5 - ~2% • Existing processing precedents
• Favourable ore body geometry • Modular solutions available • Existing capacity installations
2. Leverage multi-commodity nature of deposit to extract credit from all or most of constituent commodities
1. Downstream integrated development path
3. Modest capex roll-out with scalability option
16
1. Bushveld Complex Context
2. Geology/Resource
3. Metallurgy/Processing
4. Development Strategy
Additional Information
Project Location
17
65 km west of Polokwane and 45 km north-northwest of Mokopane in the Mokopane District, Limpopo Province
Located in the central portion of the Northern Limb of the Bushveld Complex (BC) and comprises a group of six
adjacent farms.
1 2
Infrastructure Existing mining-supportive infrastructure in the Bushveld Complex
18
• Rail: 45 km from a rail line
• Port options
– Mozambique (Matola) and
Richard’s Bay, both undergoing
significant capacity expansions
targeting magnetite and coal
exports)
• Transnet’s ZAR300 billion
(~US$30 billion) capital
investment programme
– ZAR201 billion targeting rail
infrastructure
– ZAR33 billion targeting ports
infrastructure
Rail & Port
1 2
Infrastructure Existing mining-supportive infrastructure in the Bushveld Complex
19
• 150km from new Medupi
power station,
• Existing transmission
infrastructure within a 20 km
radius of the project:
Matimba/Witkop dual 400kV
lines
Witkop/PPRust 132kV line
PPRust 132kV Substation
• 15km from proposed Eskom
110kV transmission line and
substation from Medupi
power station
• Close proximity to coal fields
and advanced stage IPP
projects
Power
1 2
Infrastructure Existing mining-supportive infrastructure in the Bushveld Complex
20
• Available ground water
resources available to
support project
requirements for
concentrate product
• Opportunity to
particpate in
~140ML/day pipeline
from Flag Boshielo Dam,
80 KM from project site
Water
Slide 21
JORC Resource
991 Mt JORC compliant Resource
PQ Deposit:
• 939 Mt iron ore (VTM) resource
– In-situ grade:33%Fe, 11% TiO2, 0,2% V2O5
– Conc grades – 55% Fe, 19.5% TiO2, 0,33% V2O5
• 440 Mt P2O5, resource avg grade 3.6% in the distinct hanging wall
Vanadium Deposit
• 3 distinct adjacent horizons combining >80m thickness
• Initial 52 Mt JORC resource confirmed in only one horizon (MML) over ~6km strike
– In-situ grade 45% Fe, 1.48% V2O5, 9% TiO2
– In-conc. grades: 56% Fe, 2.01% V2O5, 11.9% TiO2
~1km
Slide 22
Phosphate Zone
• Up to 61m thick
• 440 Mt P2O5
• Zone geologically and identifiably distinct from P-Q layer
• Upgradable to >35% P2O5 with >50% recoveries
Disseminated Magnetite
• Avg widths of 20-30m
• Average grades of c. 30% Fe
• 55% Fe, 19,5% TiO2 concentrate with >80% recoveries
Weathered Zone
• Down to ~25m depth
• Gabbroic rocks altered to washable clay
• Magnetite retains magnetic properties
• Resource delineated
Massive Magnetite
• High grade massive magnetite
• Average 15m thick, avg grade 41% Fe, 14,7% TiO2
• Upgradable through DMS using coarse (~12mm and 6mm) fractions
• >259 Mt total Resource (81Mt indicated)
Disseminated mineralisation Massive mineralisation
P-Q Deposit
4 distinct minable packages with significant upside for project economics
* For the upper Phosphate-Zone
Two zones of rock phosphate in hanging wall of the P-Q Zone, distinct from the P-Q Zone mineralisation with distinct geological markers
JORC Compliant Inferred Mineral resource:
• 440 Mt, average grade is 3.6% P2O5 (using a 3% cut-off grade), containing15.84 Mt of P2O5
>35% P2O5 concentrate achieved at 53% recoveries
Scoping study underway
Resource expected to have minimal mining costs – part of the strip for the P-Q deposit
P-Q Deposit Economic Upside from Phosphate Resource
23
Bushveld (MML) Vanadium Project
24
Deposit Resource
Category Mt Fe%
TiO₂
(%)
V₂O₅
(%)
V2O5 in
magnetite
Total V
tonnes
MML Indicated 51.81 44.7 9.7 1.48 2.01% 766.7 kt
Deposit
Potential
Resource
(Mt)
Fe (%) TiO₂ (%) V₂O₅
(%)
V2O5 in
magnetite
Est. V
tonnes
AB Zone ~60* 28.8* 6.15* 1.17 * 2.38% ~1 Mt*
Deposit
Potential
Resource
(Mt)
Fe% TiO₂
(%) V₂O₅ (%)
V2O5 in
magnetite
Est. V
tonnes
MML-
HW >250* 10-15* 2-3* 0.3-0.4* 1.5-1.7%* > 750 kt*
* Grades are estimates based on boreholes drilled and do not represent a resource statement
• World class open-castable vanadium deposit contained in 3 distinct horizons combining >80m thickness , including the MML
• Initial 52 Mt vanadium-rich magnetite deposit confirmed in only one horizon (MML) over ~6km strike (average V2O5 in-situ grade of 1.48%)
Vanadium Project
Total V2O5 contained in resource (area of circle)
1. Bushveld Vanadium (South Africa)
2. Maracas (Brazil) 3. Barrambie (Australia) 4. Mustavaara (Finland) 5. Rhovan (South Africa) 6. Mount Peake (Australia) 7. Windimurra (Australia) 8. Balla Balla (Australia) 1a – Potential for Bushveld Vanadium incl. MML and AB Zone 1b – Potential for Bushveld Vanadium incl. MML, AB Zone and MML-HW
Global Vanadium Projects Bushveld vanadium grade in top tier of projects worldwide
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
0 100 200 300 400 500 600 700 800 900 1000
Ave
rage
in-s
itu
gra
de
Total Ore Tonnage (Mt)
Bushveld Vanadium Deposit Comparison
2
3
5
4 6
7
1b
1
8
1a
Grade – tonnage trendline
Source: Company market announcements, Annual reports
25
A growing vanadium producing region: - Located in world class vanadium bearing geological zones with several operational projects
26
Bushveld Vanadium World class deposit in highly mineralised area
27
1. Bushveld Complex Context
2. Geology/Resource
3. Metallurgy/Processing
4. Development Strategy
Additional Information
Metallurgy - Concentrate
28
• Similar minerology for both P-Q and MML Zone
• Similar process flow sheet for producing concentrate – using magnetic separation or dense media separation
• Good concentrate grades achieved for both the P-Q and MML ores:
P-Q
• Concentrate grades of ~55% Fe, 19.0% TiO2 and 0.33% V2O5
(>80% recovery) at 500 μm
• High-grade Q2 unit of the P-Q Zone can be beneficiated at coarse grain
sizes - 6mm fraction ‘concentrate’ product grade achieved: ~50% Fe, 18.5% TiO2, and 0.33% V2O5 (~75% recovery)
MML
• Davis Tube Tests undertaken on the MML and AB Zone returned encouraging results as shown by the concentrate grades below:
– MML: 2.01% V2O5 , 56.86% Fe and 11.90% TiO2.
– AB Zone: 2.38% V2O5, 54.90% Fe and 9.91% TiO2
• Plant Design - Simple design - crush, mill, magnetic separation and flexible plant – can accommodate all ore types (fresh, weathered, massive, disseminated)
Pyro-metallurgy : Bushveld Vanadium Project
29
Two pyromet processing routes, both with existing operational precedents based on Bushveld vanadium bearing magnetite
Examples: Highveld Steel & Vanadium Examples: HRhovan, Vametco, Vanchem
Option 1 – Option 2 –
Pyro-metallurgy : Bushveld Vanadium Project
30
Examples: Highveld Steel & Vanadium
Flowsheet characteristics
• Applicable only to the MML Deposit
• Simple flowsheet
• Relatively low capex (~US$160m for 5,000 ton V2O5 production capacity)
• Exposure to the V2O5 market
• Iron oxide calcine (~55%Fe) could be monetised
• Calcine contains sodium, sulphur & vanadium – impact on use in iron making
Option 1: Smelting Route for steel/pig iron & vanadium recovery (e.g. Highveld Steel & Vanadium)
14
2014
Vametco plant
Bushveld Vanadium Possible processing routes selected from existing operations
Option 1 – Salt Roast Process for treatment of Vanadium Slag/Fines
Currently operating mines are processing similar types of ore to that of Bushveld’s and probable processing routes have been identified:
Pyro-metallurgy : Bushveld Vanadium Project
32
Option 2: Smelting Route for steel/pig iron & vanadium recovery (e.g. Highveld Steel & Vanadium)
Examples: Highveld Steel & Vanadium
Flowsheet characteristics
• Pre-reduction to lower electrical energy consumption
– 60-70% iron metallisation, no vanadium reduction
• Highly reducing furnace conditions to reduce vanadium oxide
– Minimise reduction of Titanium (0.2% Ti in metal)
– Controlled reduction of silicon (0.2% Si in metal)
• Hot metal treatment to produce vanadium slag and lean pig iron
• High capex (>US$1Bn for ~1Mtpa pig iron + ~10,000 t FeV production capacity
• Economics benefit from two revenue streams (Fe and V, and possibly Ti as well
19
2014
Highveld: Iron Plant 1 and Steel plant
Bushveld Vanadium Possible processing routes selected from existing operations
Option 2 – Highveld Process for Vanadium Slag
Currently operating mines are processing similar types of ore to that of Bushveld’s and probable processing routes have been identified:
Kilns
Shaking ladles + BOFs
Steel casting Mills (Structural + Flats)
Furnaces
33
Pyro-metallurgy : Bushveld Vanadium Project
34
21
2014
Integrated production of V2O5 and pig iron
Ore
preparation
Roasting
kiln
Leaching &
precipitation
Ore
preparation
Pre-reduction Smelting Ladle
treatment
V slagCalcine
V2O5
Pig iron
MML con
MML
chips
Medium grade
TiO2 slagPhase 2
Phase 1
Scope for integrating the 2 flowsheets
35
1. Bushveld Complex Context
2. Geology/Resource
3. Metallurgy/Processing
4. Development Strategy
Additional Information
36
Economic and Project Design considerations MML and P-Q Zone deposits
• Shared mining and processing infrastructure
• Leverage multi-commodity nature of resource and maximise economics from all commodities Iron, Titanium, Vanadium, Phosphate
• Target a modest initial phase with low capex
• Leverage any existing processing infrastructure in country already
• Maximise on shared beneficiation processes to optimise capex
• Targeted Strategic partnerships for Phosphate, P-Q Project, and Vanadium project
1 2 Study undertaken on the P-Q Zone only and on only
12% of the total JORC resource (JORC-compliant 718 Mt resource)
Low capex and concentrate product route at base case RoM of 5 Mtpa underscores viability of project
Pre-feasibility study underway
Attractive operating costs: US$51 / tonne, (US$6/tonne when adjusted for titanium and vanadium credit)
Significant upside from:
• volume scale up,
• downstream development,
• developing the vanadium-rich MML deposit ,
• developing the phosphate resource
Bushveld Iron Ore Project – 5 Mtpa Run-of-Mine
Item Unit Value
Total Mill Feed LOM Mt 87.53
Run of Mine Mtpa 5.0
Product (Concentrate) produced Mtpa 2.20
Strip Ratio waste:ore 1.36
Gross Revenue LOM US$’m real 2 929
Royalty LOM US$’m real 160
Net Revenue LOM US$’m real 2 769
Operating Costs LOM US$’m real 1 469
Capex Initial
Sustaining
US$’m real
US$’m p.a.
125.8
2.5
Cash flow LOM US$’m real 476
NPV
@ 10% real
@ 12.5% real
IRR real
US$’m
US$’m
%
188.4
139.8
34.2% Payback (based on discounted cash flow)
Yr 2 years
Life of Mine Yr 18
Scoping study delivers an initial low capital expenditure (“capex”) project which results in first phase cashflows that can be leveraged to unlock the larger potential inherent in exploiting the deposit along strike and to lower depths, as well as pursuing downstream beneficiation opportunities
Scoping Study Results Low capex base case scenario yields positive economics
37
2014 2015 2016
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Bushveld Iron Ore (P-Q) Project
Iron Ore Resource update ✔
P-Q Scoping Study ✔
Iron Ore metallurgy (pyro-met) update
Revised P-Q Scoping Study (incl. downstream) Pre-Feasibility Study
Secure strategic partner for iron ore projects
Bankable Feasibility Study
Bushveld (P-Q) Phosphate
Phosphate resource definition & metallurgy ✔
Scoping Study
Pre-feasibility Studies
Secure strategic partner
Bushveld Vanadium Project
Resource Definition (AB Zone & MML-HW)
Detailed metallurgy (incl pyrometallurgy)
Scoping study
Pre-feasibility Study/Feasibility Studies
Development & Production
Milestones 2013 - 2014 Strong pipeline of news to follow
38
Attractive cost curve proposition
• Opportunity to leverage multiple revenue streams to optimise cost curve positioning (Vanadium, Titanium, Phosphate)
1
Bushveld Iron Ore Project Investment case Project boasts attractive economics with significant upside potential
39
2
3
Pragmatic executable path to production
Scale potential
• Modest capex requirements + simple operational model creates opportunity for early realisable cash flows
• Cash flows can be leveraged to develop project more fully
• Opportunity for economies of scale
• Creates scope for strategic partnerships with majors
• Creates multiplicative value impact
Thank You
40
South Africa Ground Floor, Block A 24 Fricker Road Illovo, 2116 Tel +27 11 268 6555 Fax +27 11 268 5170
41
Contact
Steel industry driven rising Intensity of vanadium use in China
• Vanadium-containing steel sub-sector steadily growing and expected to rise further due to shift from low to high-strength steels
• Steel-specific vanadium consumption estimated to grow with CAGR of 4.8% over the period 2010 to 2015, with over 80% of growth occurring in the BRIC countries
• Total vanadium demand growth forecast to be greater than 6% between 2009 and 2019
• Chinese is dominant driver of vanadium consumption growth in 2011 to 2016 period
• Structural efforts to increase share of high value-added, micro-alloyed steel coupled with technical and political limitations will result in steady increase in vanadium intensity of use
• Chinese government policy-driven shift to use of high strength rebar will restrict and gradually eliminate the use of lower strength bars by 2015 expected to drive increase in vanadium content in steel rebar
• Chinese consumption share of vanadium to increase from 36% in 2011 to 45% in 2016
• Global demand to rise at a CAGR of 6.9% over the 2011 to 2016 period
The Vanadium Market Chinese intensity of vanadium use to increase
42
The Vanadium Market Chinese intensity of vanadium use to increase
43
Chinese government policy-driven shift to use of high strength rebar will restrict and gradually eliminate the use of lower strength bars by 2015 expected to drive increase in vanadium content in steel rebar
The Vanadium Market Chinese intensity of vanadium use to increase
44
Chinese government policy-driven shift to use of high strength rebar will restrict and gradually eliminate the use of lower strength bars by 2015 expected to drive increase in vanadium content in steel rebar
USA
Europe
Japan
China
China (2016)
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
0.000 0.010 0.020 0.030 0.040 0.050 0.060 0.070 0.080 0.090
V c
on
sum
pti
on
gro
wth
(t)
Kg of Vanadium used per tonne of steel
Projected Impact of China's Increased Steel Standards (2013)
Vanadium is a niche metal with high-end uses and significant upside
Steel industry vanadium consumption – by region
0.09
0.08
0.07
0.06
0.05 0.05
0.04
0.03
0.00
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
0.10
North America Europe Japan CIS World Average Other China India
Kg V/t
•China’s current low specific vanadium consumption rates are rising
Source: TTPSquared, Inc
45
“Vanadium Redox Fuel Cell – that’s one of the coolest things I’ve ever said out loud”
- President Obama
(Forum on Small Business, Feb 2011)
Energy Storage
• Average change in vanadium demand in energy storage consumption estimated at 42.1% CAGR from 2011 to 2016
• Major drivers of vanadium demand growth in mass energy storage:
―Hybrid and electric cars (each car needs approximately 15.4 lbs of vanadium
―Household vanadium battery storage unit (each 50 kwh per day unit needs approximately 440 lbs)
―Large scale power storage (each 1 GWh vanadium redox battery (VRB) requires 4 kt of pure vanadium)
• VRBs can absorb and release massive amounts of electricity instantly and do so repeatedly, making it the only battery technology capable of connecting directly to power grids and streamlining intermittent flow of energy from wind turbines and solar cells
The Vanadium Market Two key industries: Steel and Energy Storage
46