Vanadium

Content maintained by Roy Towner

• Vanadium
• Resources
• Exploration
• Production
• Industry Developments

Vanadium (V) is used in metal alloys with iron to produce high strength steel which have a wide range of uses, including structural applications such reinforcing bars in building and construction, gas and oil pipelines, tool steel, the manufacture of axles and crankshafts for the motor vehicle industry, and in jet engines for the aircraft industry.

Non-steel uses include welding and alloys in nuclear engineering and superconductors. Vanadium chemicals and catalysts are used in the manufacture of sulphuric acid and the desulphurisation of sour gas and oil.

Vanadium is sold as vanadium pentoxide (V2O5), or less commonly as vanadium trioxide (V2O3), or as an alloy of iron and vanadium, most commonly as FeV80 which has 80% contained vanadium, or as FeV50. V2O5 is typically quoted in US$ per pound (lb), while FeV is quoted in US$ per kilogram.

Most of the annual world production of vanadium, about 80%, is produced as a by-product resulting from reprocessing steel slags, oil refining and the uranium enrichment industry. Mine production accounts for only about 20%.

Vanadium prices have fluctuated during the past decade with sharp price rises and declines over short periods. Prices have ranged from US$1.30 per lb V2O5 to more than US$20 per lb. The average prices have been in the range of US$3 to $4 per lb.

Australia's EDR of vanadium increased by 8% in 2007 to 898 kt, up from 832 kt in 2006. Growth in EDR was recorded at Barambie near Mount Magnet, WA, Balla Balla mid-way between Karratha and Port Hedland, WA, at Windimurra 75 km south east of Mount Magnet, WA and at Bigrlyi 390 north west of Alice Springs, NT.

Historically, Australia's EDR have fluctuated because of the economic impacts of volatile prices and the nature of the vanadium market, which is supplied largely from secondary sources that rapidly increase or decrease output in response to price trends.

Aurox Resources Limited: As part of a bankable feasibility study of the Balla Balla WA, vanadium-titanium-iron oreproject, Aurox Resources Limited reported a JORC compliant ore reserve as proven reserves of 51.2 million t grading 0.65% V2O5 and 46.07% Fe and probable reserves of 52.6 million t grading 0.62% V2O5 and 45.36% Fe. Balla Balla is a titaniferous magnetite segregated zone within a large, basic ultramafic intrusion.

Reed Resources Ltd: As part of a definitive feasibility study of its Barrambie Project, WA, Reed Resources Ltd reported resources at a cut-off grade of 0.5% V2O5 as indicated resources of 6.5 million t grading 0.84% V2O5, 17.3% TiO2 and 46.7% Fe2O3 and inferred resources of 17.1 million t grading 0.82% V2O5, 18.2% TiO2 and 49.3% Fe2O3.

Energy Metals Limited: As part of its scoping study of its Bigrlyl project, NT, Energy Metals Limited released an updated resource estimate based on 0.05% U3O8 cut-off grade which showed indicated resources of 1.94 million t grading 0.17% U3O8 and 0.19% V2O5 and inferred resources of 2.59 million t grading 0.13% U3O8 and 0.14% V2O5.

Windimurra Vanadium Limited (formerly known as Precious Metals Australia) carried out further exploration drilling on its main Windimurra deposit, WA. It reported a total reserve at a cut-off grade of 0.275% V2O5 of 98.2 million t grading 0.4% V2O5 within a total resource of 148 million t grading 0.46% V2O5. Vanadium mineralisation occurs within a shallow-dipping magnetite –rich horizon on the eastern side of a large gabbroic intrusion.

Interim Resources Ltd continued exploration at the Julia Creek project just north of the Mt Isa to Townsville railway in north west Queensland. JORC compliant resources were reported as measured resources, 204.3 million t averaging 0.4% V2O5 and 300 g/t MoO3, indicated resources, 1,032 million t averaging 0.4% V2O5 and 311 g/t MoO3 and inferred resources, 772 million t averaging 0.39% V2O5 and 385 g/t MoO3.

There was no mining or production of vanadium in Australia during 2007. While there are a number of vanadium deposits in Australia, Windimurra, WA, has been the only deposit mined in recent years. Most of the world 's mine production of vanadium during the year was from South Africa (39%), China (32%) and Russia (27%).

Windimurra Vanadium Limited is redeveloping the Windimurra mine, WA, with mining equipment and power generation equipment ordered. Construction at the mine site has commenced and first production is targeted for the 4th quarter of 2008. The mine is expected to produce 6,400 t per year of ferrovanadium and 1,000 t per year of vanadium pentoxide, which will represent about 8% of the world market.

In late 2007, Energy Metals announced that the initial scoping study demonstrated that the Bigrlyi project, NT, has the potential to produce 8.43 million lbs of U308 and 6.97 million lbs of V205 from 2.73 million t of ROM ore over a mine life of eight years based on the resource of 4.53 million t at 0.14% U308 and 0.16% V205 at 0.5kg/t U308 cut off, assuming a treatment rate of 0.5 Mt per year and U308 and V205 metallurgical recoveries of 95% and 70% respectively.

Aurox Resources Limited has arranged several pre-contract agreements for the installation of all major components required to commission the 6 million t per year Balla Balla magnetite concentrate processing plant and related port infrastructure. The company is undertaking a pre-feasibility engineering study for the 110 km, 10 million t per year slurry and return water pipelines between the mine processing plant at Balla Balla and the Port Hedland Port Authority planned multiuser facility at Utah Point. The mine is scheduled for commissioning in late 2010.

Reed Resources expects to complete its definitive feasibility study on its Barrambie vanadium project in June 2008, with first production scheduled for early 2011.