news - Windimurra

Proteus on stand-by for Windimurra re-start

Windimurra Vanadium (WVL) has suspended construction of its $300m Windimurra Vanadium Project pending discussions on working capital requirements. 
Construction of the $120m Vanadium Recovery Area, was due for completion by WVL in May 2009.  It has been delayed due to -

·         delayed regulatory approval of mining proposal

·         later delivery of equipment packages

·         removal by WVL of the SMP (Structural, Mechanical Piping) construction contractor from site in August 2008. 

Proteus undertook engineering design, procurement and construction support, and a Proteus team was commencing commissioning at the time of the suspension. We looks forward to assisting completion of this significant, complex and exciting project when it re-commences. 

Background (from WVP website):

Windimurra Vanadium Limited (WVL) is a mining company based in Perth, Western Australia and is listed on the Australian Stock Exchange (ASX:WVL).  The Company's focus is the development of the world class Windimurra Vanadium Mine, located 600km north east of Perth in WA's Mid-West region. 

WVL has a strategic alliance and off-take agreement with leading global supply chain manager, Noble Group Limited, based in Hong Kong.  Noble has agreed to purchase the total vanadium output of the Windimurra mine, at prevailing market prices for the life of the mine. 

Windimurra contains one of the largest reported proven vanadium Ore Reserves in the world with current mineable reserves of 79 million tonnes at a bulk grade of 0.47% V205 (vanadium pentoxide), which will underpain an initial mine life of 20 years at the proposed mining rate of 3.9mtpa.  A total 176 million tonnes for resources have been modelled at a bulk grade of 0.46%

The quality of the ore body, the opportunity to use the latest proven technology and the scale of the project, that will produce 8% of the world's vanadium, combine to ensure that Windimurra will be a low cost producer. 
The Windimurra mine was originally built by the Company with a joint venture partner in 1999, and, whilst operating, was the world's largest primary vanadium mine, gaining recognition as one of the highest-quality sources of vanadium in the world market. 
Since 2003, world demand for vanadium and the price of the commodity have increased strongly, largely driven by growth in Chinese steel production.  Marketing studies commissioned by WVL forecast that vanadium demand will continue to increase through 2015 at a compound annual growth of 7.8%.