TIDMBMN
RNS Number : 5418K
Bushveld Minerals Limited
11 April 2018
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
11 April 2018
Bushveld Minerals Limited
("Bushveld" or the "Company")
Bushveld Energy Q1 Operational Update
Bushveld Minerals, the AIM-listed integrated vanadium producer
with additional investments in coal, power and tin, is pleased to
provide an operational update in respect of its 84 per cent owned
energy subsidiary, Bushveld Energy Limited ("Bushveld Energy").
Fortune Mojapelo, CEO of Bushveld Minerals Ltd, commented:
"We are delighted by the significant progress made by Bushveld
Energy in the first quarter of 2018 as it moves forward on
delivering on its key aim of exploiting the commercial opportunity
of Vanadium Redox Flow Battery ("VRFB") technology within the
energy storage market. During the quarter we progressed our two
immediate priorities, preparing for the construction of our
vanadium electrolyte plant in South Africa and the delivery of our
first energy storage system to Eskom. Both projects remain on
track.
"We are experiencing increased requests for electrolyte supply
and VRFB technology for energy storage projects, both globally and
in Africa, even in the context of decade-high vanadium prices. The
prevailing price environment, coupled with ownership of a low cost
vanadium production base, creates a uniquely attractive opportunity
for Bushveld. In this context, our vertical integration strategy,
and development of innovative business models for electrolyte
delivery into VRFBs, strongly positions us to support adoption of
VRFBs in the energy storage market while creating significant value
for our shareholders.
"Furthermore, we are encouraged by the establishment of the
South Africa Energy Storage Association ("SAESA"), of which
Bushveld Energy CEO, Mikhail Nikomarov, has been elected to serve
as the Association's first Chairman."
OPERATIONAL HIGHLIGHTS FOR BUSHVELD ENERGY PROJECTS:
Electrolyte production facility
-- Engaged an international chemicals company that has already
designed and built a vanadium electrolyte production plant with
multiple megalitre annual capacity. The scope of the engagement in
the first phase includes:
- Independent verification and improvement of the existing
process flow and plant design to cover both the process at Vametco
and that of the greenfield facility in the East London Industrial
Development Zone ("EL IDZ");
- Greater certainty of the cost estimate for the dual-located
processing assets;
- Joint work with Bushveld Energy and Bushveld Vametco to expand
Vametco's current laboratory capabilities to include testing of
electrolyte in-house and production of batch, single-acid vanadium
electrolyte as samples to prospective VRFB customers;
- Preparation of the project for the Engineering, Procurement
and Construction (EPC) phase, which is planned for the third
quarter of this year.
-- Tendered for environmental assessment that needs to be
performed at both Vametco and EL IDZ.
Eskom VRFB project
-- Completed manufacturing of the Direct Current ("DC") portion
of the VRFB, with factory acceptance expected in April 2018 and
delivery of the entire system still on track in the second quarter
of this year;
-- Commenced site preparation work at the Eskom site, including earthworks and cabling;
-- Appointed two technicians from South Africa to perform
installation and maintenance on the Eskom project. Technicians will
be training at UniEnergy Technologies, a US-based leading VRFB
manufacturer, in April. This will give Bushveld Energy the
capability to install and maintain future VRFB installations in
South Africa and regionally.
Market status
-- The growth of VRFB deployments continues to grow globally,
led by China. Market intelligence points to two more 400MWh sized
VRFBs that will be procured in China in addition to the 800MWh
system by Rongke Power and 400MWh system by Pu Neng, which have
already been announced;
-- In South Africa, demand continues to rise, evidenced both by
greater enquiries for provision of single-acid vanadium electrolyte
or direct projects that require energy storage for at least four
hours per day. This has allowed Bushveld Energy to continue growing
its regional project pipeline. However, conversion of potential
projects is currently low due to regulatory uncertainty over the
treatment of energy storage, the lack of progress of South Africa's
renewable energy programme and opaque official guidance on the
direction of the country's energy policy as published in the
Department of Energy's Integrated Resource Plan.
-- On a positive note, the new government in South Africa and
the renewal of investor confidence that it has brought are
encouraging signs that suggest a move towards increased regulatory
clarity;
-- In another sign of market maturity, SAESA was created this
quarter. Bushveld Energy is proud to note that its CEO, Mikhail
Nikomarov, was elected to serve as its first Chairman. SAESA's
mission is to create a more resilient, accessible, efficient,
sustainable, and affordable energy system in Africa by educating
stakeholders, advocating for public policies, accelerating energy
storage growth, and adding value to the energy storage
industry.
Bushveld Energy 2018 Focus
Going forward Bushveld Energy will continue to focus on its
stated priorities, being:
Deploy VRFB systems into market:
-- Deliver the first VRFB project with Eskom in Q2 CY18
-- Grow the project pipeline across Africa
Electrolyte facility:
-- Complete environmental work and all requirements at Vametco and at the EL IDZ
-- Start the Engineering, Procurement and Construction of the electrolyte facility
-- Supply samples to VRFB OEMs and secure interest in electrolyte offtake
Position Bushveld Energy as a thought leader in energy storage
in Africa and in VRFBs globally
Enquiries: info@bushveldminerals.com
Bushveld Minerals +27 (0) 11 268 6555
Fortune Mojapelo, Chief Executive
Officer
Chika Edeh, Head of Investor
Relations
Bushveld Energy Limited +27 (0) 11 268 6555
Mikhail Nikomarov, Chief Executive
Officer, Bushveld Energy Limited
+44 (0) 20 3470
SP Angel Corporate Finance LLP 0470
Nominated Adviser & Broker
Ewan Leggat
Richard Morrison
+44 (0) 20 7186
Alternative Resource Capital 9004
Joint Broker
Alex Wood
Blytheweigh
Financial PR
+44 (0) 20 7138
Tim Blythe / Nick Elwes 3204
+27 (0) 711 121
Gabriella von Ille 907
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is an AIM-listed integrated vanadium producer
with additional investments in coal, power and tin.
The Company's flagship vanadium platform includes a 59.1 per
cent controlling interest in Bushveld Vametco Alloys (Pty) Ltd a
primary vanadium mining and processing company; the Mokopane
Vanadium Project and the Brits Vanadium Project. The coal platform
comprises the wholly-owned Imaloto Coal Project, which is being
developed as one of Madagascar's leading independent power
producers. The Company's tin interests are held through its
shareholding in AIM-listed AfriTin Mining Limited.
Bushveld's vision is to become a significant, low cost,
integrated primary vanadium producer through owned high grade
assets. This incorporates development and promotion of the role of
vanadium in the growing global energy storage market through
Bushveld Energy, the Company's energy storage solutions provider.
Whilst the demand for vanadium remains largely anchored in the
steel industry, Bushveld Minerals believes there is strong
potential for an imminent and significant global vanadium demand
surge from the fast-growing energy storage market, particularly
through the use and adoption of Vanadium Redox Flow Batteries.
The Company's approach to project development recognises that,
whilst attractive project economics are imperative, they are
insufficient to secure capital to bring them to account. A clear
path to production within a visible timeframe, low capital
expenditure requirements and scalability are important factors in
ensuring a positive return on investment. This philosophy is core
to the Company's strategy in developing projects.
Detailed information on the Company and progress to date can be
accessed on the website: www.bushveldminerals.com.
About Bushveld Energy Limited
Bushveld Energy Limited is an energy storage solutions provider
focusing on the African market, with registered offices in
Mauritius and a wholly owned subsidiary in South Africa. Bushveld
Energy recognises that electricity in Africa intersects paramount
potential for social transformation with an immense commercial
opportunity.
Launched in 2016, Bushveld Energy is focused on developing and
promoting the role of vanadium in the growing global energy storage
market through application in vanadium redox flow batteries. Its
near term strategy is to deploy several VRFB systems as part of its
longer term vision to become a significant electricity storage
provider in Africa by 2020, meeting the demand for utility scale
energy storage in Africa by leveraging South Africa-mined and
beneficiated vanadium.
http://www.bushveldenergy.com
This information is provided by RNS
The company news service from the London Stock Exchange
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