Atlantic ships first FeV from Windimurra Mine in Australia
Atlantic Ltd has shipped the first ferro-vanadium from its Windimurra project in Australia.
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“A first shipment of seven tonnes left Windimurra late yesterday and was delivered to Atlantic’s offtaker’s warehouse,” the Perth-based company said Wednesday.
Atlantic is aiming to produce between 4,800 and 5,300 tonnes (vanadium contained) during its fiscal year ending June 30, 2013, and Windimurra is expected to reach its full capacity of 6,300 tonnes per year by the end of this calendar year, according to the statement.
Some of Windimurra’s material is set to make its way to the USA, as Atlantic’s exclusive offtake partner, Hong Kong-based Element Commodities, has an agreement with Bridgeville, Pennsylvania-based MoTiV Metals to sell the material in the Americas.
North America is listed as Atlantic’s “target market” due to its relatively higher prices, according to the statement.
“I fully expect Atlantic to target the USA with its FeV, as this is the highest-priced market in the world... and it has a strong organisation here to sell it,” a market source said.
A top executive for MoTiV told AMM in January that material might start arriving stateside by late March or early April.
The company could not be reached for comment on the delay.
Ferro-vanadium in the domestic market is trading between $15 and $16 per pound as material has been tight this year, while prices in Europe are between $25.80 and $26.20 per kilogram ($11.70 and $11.88 per pound).
Windimurra’s production costs at full capacity are expected to be between $15.70 and $20.90 per kilogram ($7.12 to $9.48 per pound), while costs for the company’s fiscal year 2013 are anticipated between $17.70 and $19.60 per kilogram ($8.03 and $8.89 per pound), according to a company presentation.