"Our current offtake agreement was instrumental in securing the initial financing for the construction of the Maracás Menchen mine,” Largo Resources’ chief executive officer Mark Smith said in a statement.
Largo will continue to develop its own internal sales and trading business, headed by Paul Vollant, with a focus on premium applications requiring high-purity V2O5.
The original offtake was signed in May 2008.
During that time, V2O5 traded at all-time highs of $28.50-29.15 per lb in November 2018 amid concerns over supply to meet new rebar regulations in China; and multi-year lows during a period of weak demand in 2016, according to Fastmarkets’ benchmark price assessment for V205, 98% V205 min, in-whs Rotterdam. Prices were last assessed at $6.80-7.50 per lb on August 16.
The offtake agreement that sees Glencore market the vanadium pentoxide (V2O5) produced by Largo Resources in Brazil will not be renewed when it expires on April 30, 2020, the latter said late on Tuesday August 20.