What it does
Ferro-Alloy Resources Limited (LON:FAR) is a Kazakhstan-focused focused on the development of the Balasausqandiq vanadium deposit in the south of the country.
Vanadium is an element that has a wide range of application in the manufacture of metal alloys and is often used to increase the strength of steel for use in surgical tools, jet engines and dental implants.
What it owns
Ferro is the 100% owner of the Balasausqandiq vanadium deposit that also contains by-products such as uranium, molybdenum, aluminium, rare earth metals and carbon.
A reserve summary carried out in 2014 by the Kazakh State Reserves Committee confirmed a reserve at the site of more than 70mln tonnes, although Ferro said this assessment is only based on partial drilling and does not reflect the extent of the deposit.
The company says that the deposit is unlike the vast majority of vanadium deposits elsewhere in the world as it is not comprised of the mineral vanadiferous titano-magnetite, meaning material from the site can be processed with much lower capital and operating costs.
Ferro estimates that Balasausqandiq is large enough to produce around 10mln tonnes of ore per year, generating around 55,000 tonnes of vanadium pentoxide.
Aside from its developments at Balasausqandiq, the company also operates a processing plant treating low-grade bought-in concentrates with a production capability of around 150 tonnes per year of vanadium pentoxide.
The company is planning to increase output at the plant to around 1,500 tonnes per year by “by further debottlenecking the plant and installing additional equipment”, the cash from which it intends to use to fund the development of the Balasausqandiq deposit.
- Developing low-cost vanadium project
- In financing discussions to fund development plans
- Has completed extension of vanadium processing plant