TIDMBMN
RNS Number : 9056E
Bushveld Minerals Limited
11 November 2020
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 November 2020
Bushveld Minerals Limited
("Bushveld Minerals" "Bushveld" or the "Company")
Vametco Mini-Grid Update
Bushveld Minerals Limited (AIM: BMN), the AIM quoted, integrated
primary vanadium producer and energy storage provider, with
ownership of high-grade assets in South Africa, is pleased to
provide an update on the hybrid mini-grid project being developed
at the Vametco vanadium mine comprising of 3.5 megawatts ("MW" ) of
solar photovoltaic ("PV") generation and 4 megawatt hours ("4MWh")
of vanadium redox flow battery ("VRFB") energy storage.
This project is part of Bushveld's strategy to demonstrate both
the superior technical merits of long duration VRFB systems when
paired with renewable energy, while providing a commercial return
to the Company's shareholders. It will also use locally mined and
beneficiated vanadium, showing how VRFB energy solutions can create
more local value to South Africa than any other storage technology
.
The hybrid mini-grid project will supply just under 10 per cent
of Vametco's electrical energy consumption at any one time and will
demonstrate the technical and commercial capability of hybrid
mini-grids using solar PV and VRFB technology. Technically, the
system will be able to operate independently or jointly, either as
standalone systems or as a fully functional mini-grid
installation.
In addition, the hybrid mini-grid project, will contribute
towards reducing the carbon footprint of Bushveld's mining and
processing operations as it will reduce CO(2) emissions by more
than 5,700 metric tonnes of CO(2) emissions per year (and nearly
114,000 tonnes of CO(2) over the 20 year-life of the project). This
will be a positive contribution towards South Africa's low emission
strategy.
Recent project achievements, include:
-- Receipt of environmental authorisation, following the
submission of the Environmental Basic Assessment ("BA"), from the
Department of Mineral Resources and Energy ("DMRE") of South
Africa, for the construction of the project.
-- Appointment of Abengoa, a technology solutions provider, to
manage the Engineering, Procurement and Construction ("EPC") of the
project, including the integration of the solar and energy storage
systems. This will be Abengoa's fourth project in South Africa
using solar plus storage, having previously commissioned 250MW with
storage.
-- Selection of Enero x to supply the 1MW / 4MWh VRFB for the
project. The Austria-based company has installed more than 136
VRFBs and 23MWh of energy storage capacity, bringing over a decade
of VRFB operational experience to the project.
-- A memorandum of understanding has been signed with Thebe
Investment Corporation ("Thebe"), a South African investment
management company, as a strategic equity partner in the
development and funding of the hybrid mini-grid project. Thebe will
be active in the development of the project going forward including
assisting the Company in finalising the terms of the external debt
funding.
-- In addition to the above, Bushveld had previously announced
other key milestones in the project, including signing of a power
purchase agreement ("PPA") with Vametco and obtaining a term-sheet
for long-term debt funding of the hybrid mini-grid project .
In terms of the supply chain, Vametco, the Company's mining and
processing operation will supply approximately 25 tons of vanadium
in the form of oxide for the VRFB. Enerox GmbH, the VRFB developer
and manufacturer owned by an investment consortium which includes
Bushveld, will supply the VRFB and ensure the conversion of the
oxide into electrolyte, and Abengoa will supply the solar PV unit,
install and integrate the system at the Vametco mine and processing
plant . Abengoa will also provide maintenance for the facility
post-commissioning.
Commercially, the project is structured as a separately funded
independent power producer that will sell the electrical energy to
the mine, reducing Vametco's reliance on Eskom. As a result, the
Vametco hybrid mini-grid project installation will be one of the
first solar generation project with long-duration storage to be
financed, off-balance sheet in Africa.
Securing the environmental approval, PPA and the EPC are crucial
project development steps leading into an application for a
generation license. Recent regulatory changes in South Africa have
permitted the National Energy Regulator of South Africa to issue
such generation licenses without ministerial dispensation.
Financial close of both debt and equity to fully fund the project
is the other key outstanding step, which will occur after receipt
of the license. Construction of the hybrid mini-grid project will
begin after financial close. The Company is confident in completing
these last two milestones and thus has moved forward with the
procurements of the VRFB.
Fortune Mojapelo, CEO of Bushveld Minerals, commented :
"I am delighted with the progress of the Vametco mini-grid
project. The project demonstrates the commercial viability of solar
plus VRFB storage solutions for commercial and industrial scale
applications. This is occurring at a time when stationary storage
deployments are gathering momentum and when in South Africa the
government is making concerted efforts to lower regulatory hurdles
for self-generation for commercial and industrial applications. In
showcasing the business case for solar plus long duration VRFB
solutions, this project will open up significant opportunities for
further VRFB deployments.
In addition, there are several unique facets to this project
that prove the commercial viability of VRFBs for a number of South
African, but also international, industrial applications. Most
importantly, we are building a large-scale solar project with a
vanadium-based battery, to store the generated electricity. The
vanadium comes from our mine and the battery, comes from Enerox,
one of our VRFB manufacturing investments. The project has already
attracted both debt and equity funding interest from reputable
funding institutions which demonstrates the economics of such solar
and VRFB mini-grids, even when compared to grid tariffs.
Furthermore, with quality partners like Thebe and Abengoa I am
confident that this project presents a great blueprint for further
similar developments."
Pedro Almagro Gavil án, CEO of Abengoa Energía, commented:
" The project is a strategic and important milestone for
Abengoa, which has installed the world's largest fleet of long
duration storage via thermal energy storage, and now is installing
the world's largest hybrid solar plant incorporating vanadium. With
such a flagship reference, Abengoa consolidates its global
reputation as a one-stop-shop storage provider, with lithium,
vanadium and molten salt storage, for short, medium- and long-term
dispatch capability."
Sunil Ramkillawan, CEO of Thebe Energy and Resources, commented
:
"Thebe's involvement in the hybrid mini-grid project alongside
Bushveld Energy confirms our strategy to partner with strong local
and international partners with best in class technology and/or
assets. This further demonstrates the importance of storage
solutions that will complement our growing portfolio of renewable
energy projects. The project also aims to deliver on our mandate of
"building communities", through the support of this high local
content project."
Alexander Schönfeldt, MD of Enerox, commented:
"We are pleased that we can show our field experience of
operating more than 100 vanadium redox flow systems worldwide now
in this first megawatt-sized project in South Africa. The
relationship with Bushveld Energy has resulted in many
opportunities to collaborate in new projects and supporting them on
qualifying their vanadium oxide feedstock to be operated in our
systems. We expect this hybrid installation to become a blueprint
of many more to come."
S
Enquiries: info@bushveldminerals.com
Bushveld Minerals Limited +27 (0) 11 268 6555
Fortune Mojapelo, Chief Executive
Officer
Chika Edeh, Head of Investor
Relations
SP Angel Corporate Finance
LLP Nominated Adviser & Broker +44 (0) 20 3470 0470
Richard Morrison / Charlie
Bouverat
Abigail Wayne / Richard Parlons
BMO Capital Markets Limited Joint Broker +44 (0) 20 7236 1010
Tom Rider / Michael Rechsteiner
/
Neil Elliot
Peel Hunt Limited Joint Broker +44 (0) 20 7418 8900
Ross Allister / Alexander
Allen
Tavistock Financial PR
Charles Vivian / Gareth Tredway
/
Edward Lee +44 (0) 207 920 3150
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a low-cost, integrated, primary vanadium
producer, with ownership of high-grade vanadium assets.
The Company's flagship vanadium platform includes a 74 per cent
controlling interest in Bushveld Vametco Alloys (Pty) Ltd, a
primary vanadium mining and processing company; 100 per cent of
Bushveld Vanchem, a primary vanadium processing facility with a
beneficiation plant; the Mokopane Vanadium Project and the Brits
Vanadium Project.
Bushveld's vision is to become a significant, low-cost,
integrated primary vanadium producer through owning high grade
assets. 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.
Bushveld Energy, the Company's energy storage solutions provider,
plays a leading role in the development and promotion of the role
of vanadium in this market.
The Company's approach to project development recognises that,
whilst attractive project economics are imperative, they may be
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 Vametco
Vametco is located near Brits on the Western Limb of the
Bushveld Complex. The integrated operation comprises a vanadium ore
mine and a processing plant that produces mostly Nitrovan , a
trademark product sold in major steel markets across the world. The
mine lies adjacent to the Brits Vanadium Project, which will in
future serve as an alternative source of near surface run of mine
("ROM") ore feed to the Vametco plant.
The Vametco mining operation uses open pit bench mining methods
to mine a well-defined orebody. The deposit is continuous with
limited faulting and dips in a northerly direction at approximately
19 degrees.
ROM ore is fed into a primary, secondary and tertiary crushing
circuit, followed by milling and magnetic separation to produce
magnetite concentrates. The magnetite concentrates are fed into the
extraction process which includes the kiln for roasting followed by
leaching and precipitation. Thereafter the precipitated vanadium as
ammonium metavanadate is converted to modified vanadium oxide
("MVO") in rotary calciners. MVO is fed into the mix plant and
finally into the shaft furnaces to produce Nitrovan.
About Vanchem
Vanchem is situated at Ferrobank Industrial Park in Emalahleni
Local Municipality, Mpumalanga Province in the Republic of South
Africa. Vanchem is a primary vanadium producing facility with a
beneficiation plant capable of producing various vanadium oxides,
ferrovanadium and vanadium chemicals. Vanchem uses the salt roast
beneficiation process, similar to the one used at Vametco. The
plant comprises: a core salt-roast processing plant, including 3
roasting kilns, an electric smelting ferrovanadium converter, an
alumino-thermic smelting facility, also located at Highveld, a
vanadium chemical plant; and a rail siding linking the plant with
Bushveld deposits and additional potential supply sources through
the national rail network.
About Bushveld Energy Limited
Bushveld Energy is a leading energy storage solutions provider,
focusing on the African market. Bushveld Energy recognises that
electricity in Africa intersects paramount potential for social
transformation with an immense commercial opportunity.
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, meeting the demand for utility scale energy storage in
Africa by leveraging South Africa-mined and beneficiated
vanadium.
www.bushveldenergy.com
About Abengoa
Abengoa is an international company that applies innovative
technology solutions for sustainability in the infrastructure,
energy and water sectors. It has has over 75 years of experience in
engineering and construction, being specialists in the execution of
complex "turnkey" projects or engineering, supply and construction
projects (Engineering, Procurement and Construction) for third
parties in four fundamental areas: energy, water, services and
transmission and infrastructure
Abengoa is an expert in the hybridization of power plants to
provide dispatchable, clean energy solutions, and its capabilities
to supply affordable and reliable decarbonization solutions for
mines, industrial facilities and isolated grids are globally
recognized, with more than 12 GW of power plants - both renewable
and conventional - successfully installed. Abengoa's energy storage
division has installed the world's largest fleet of thermal energy
storage and has experience across a range of storage technologies.
Abengoa entered South Africa in 2010 and has successfully
commissioned 250MW of solar plants with energy storage systems in
South Africa, making the company one of the most referenced EPC
contractors for complex power plants in the local market.
www.abengoa.com
About Thebe Investment Corporation
Thebe Investment Corporation ("Thebe") was founded in 1992 as a
pioneering black-owned company by the Batho Trust, a community
based trust which included Nelson Mandela (Chairman), Walter
Sisulu, Dr Enos Mabuza and Reverend Beyers Naude as original
Trustees. Since then it has invested in over 65 businesses over a
period of 28 years. Through Thebe Energy & Resources, it takes
advantage of the fact that significant resource and energy
infrastructure development has to still take place within South
Africa and Africa. Thebe's investments in the energy sector include
investments in c.a. 1GW or renewable energy projects, its
partnership in Shell Downstream South Africa and Seriti Coal.
www.thebe.co.za
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