Bushveld Energy Q2 Operating Update
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
11 July 2018
Bushveld Minerals Limited
("Bushveld Minerals" or the "Company")
Bushveld Energy Q2 Operating Update
Bushveld Minerals Limited (AIM: BMN), the AIM listed, integrated primary vanadium producer, with ownership of high grade vanadium assets, is pleased to provide a Q2 operational update for its 84%-owned energy subsidiary, Bushveld Energy Limited ("Bushveld Energy").
Operational Highlights for the second quarter
Eskom Vanadium Redox Flow Batteries project:
· Bushveld Energy and the Industrial Development Corporation received delivery of the first vanadium redox flow battery ("VRFB") from UniEnergy Technologies ("UET") in South Africa. This included the mixed-acid vanadium electrolyte that will be used in the battery;
· The utility scale battery was delivered within months of the order being made;
· Bushveld Energy's team is performing all the integration work related to the VRFB at the Eskom Research and Innovation ("ERIC") micro-grid site in Roshverville, South Africa;
· All site preparation work has been completed at ERIC;
· Preparation of the VRFB controls for integration to Eskom's existing site controller at the facility is complete;
· Two technicians from Bushveld Energy were trained on the installation, operation and maintenance of the VRFB at UET's production facility in the USA. The training will continue during the commissioning process which is expected to conclude in July, as UET is sending two engineers to South Africa to oversee the process; and
· Bushveld Energy and Eskom expect to receive initial data on the VRFB's performance at the facility during the coming quarter. The analysis of the results will help to inform the technical and commercial merits of future energy storage projects.
Vanadium electrolyte production facility:
· Bushveld Energy awarded the contract to perform an Environmental Impact Assessment ("EIA") to a South African consultancy for the greenfield facility in the East London Industrial Development Zone ("ELIDZ");
· Based on recommendations from the consultant, a full EIA will be performed, rather than a basic assessment as originally envisaged;
· The EIA will cover both the initial 200MWh capacity for the plant and allow for future production expansion;
· While this will require up to three months for community engagement and other processes, the long-term benefit will be the ability to increase capacity without securing another EIA;
· An EIA is also required for the chemicals plant that will be co-located with Bushveld's existing mining and processing facility at the Vametco vanadium mine. This application will be combined with Vametco's overall expansion application and thus not add any additional time or cost to Vametco's EIA process, highlighting an example of the synergies of vertical integration in Bushveld's business model; and
· The project remains on track to produce electrolyte in 2019 for South African and international markets.
Fortune Mojapelo, CEO of Bushveld Minerals, commented:
"In the second quarter, the first ever vanadium redox flow battery was delivered to South Africa. As the integrator for the project, Bushveld Energy and its team have been able to expand its expertise on project delivery and implementation. This has significantly assisted to build our capability to develop and deliver energy storage projects across the African continent.
This project has shown that utility scale batteries can be delivered in only months. Simultaneously, we are advancing the component manufacturing aspect of our business, where we are building flexibility for quick expansion. This strategy allows us to keep initial risk lower with an ability to capitalise should growth in energy storage materialise even faster than expected. With these efforts, Bushveld Energy is positioning itself in Africa with a unique combination of technical skills and component supply to deliver energy storage solutions."
Summary of 2018 Project Objectives
|
Objective |
Status |
|
Deploy VRFB systems into market |
|
|
· Deliver the first VRFB project with Eskom in Q2 CY18 |
Completed in Q2CY18 |
|
· Grow the project pipeline across Africa |
In progress |
|
Electrolyte facility: |
|
|
· Complete environmental work and all requirements at Vametco and at the EL IDZ |
In progress |
|
· Start the Engineering, Procurement and Construction of the electrolyte facility |
Commenced the work |
|
· Supply samples to VRFB OEMs and secure interest in electrolyte offtake |
Commenced engagement with VRFB OEMs |
|
Position Bushveld Energy as a thought leader in energy storage in Africa and in VRFBs globally |
In progress |
|
Bushveld Minerals |
+27 (0) 11 268 6555 |
|
Fortune Mojapelo, Chief Executive Officer |
|
|
Chika Edeh, Head of Investor Relations |
|
|
Bushveld Energy Limited Mikhail Nikomarov, Chief Executive Officer, Bushveld Energy Limited |
+27 (0) 11 268 6555 |
|
SP Angel Corporate Finance LLP |
+44 (0) 20 3470 0470 |
|
Nominated Adviser & Broker |
|
|
Ewan Leggat |
|
|
Richard Morrison |
|
|
Alternative Resource Capital |
|
|
Joint Broker |
|
|
Alex Wood |
+44 (0) 20 7186 9004 |
|
Rob Collins |
+44 (0) 20 7186 9001 |
|
Tavistock |
|
|
Financial PR |
|
|
Charles Vivian / Gareth Tredway |
+44 (0) 207 920 3150 |
|
Lifa Communications Financial PR |
|
|
Gabriella von Ille |
+27 (0) 711 121 907 |
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a low cost, integrated, primary vanadium producer, with ownership of high grade vanadium assets.
The Company's flagship vanadium platform includes a 59.1 per cent controlling interest in Bushveld Vametco Alloys (Pty) Ltd, a primary vanadium mining and processing company; the Mokopane Vanadium Project and the Brits Vanadium Project.
Bushveld's vision is to become a significant, low cost, integrated primary vanadium producer through owning high grade assets. This incorporates development and promotion of the role of vanadium in the growing global energy storage market through Bushveld Energy, the Company's energy storage solutions provider. Whilst the demand for vanadium remains largely anchored in the steel industry, Bushveld Minerals believes there is strong potential for an imminent and significant global vanadium demand surge from the fast-growing energy storage market, particularly through the use and adoption of Vanadium Redox Flow Batteries.
While the Company's focus is on vanadium operations and the development and promotion of VRFBs, it has additional investments in coal, power and tin.
The coal platform comprises the wholly-owned Imaloto Coal Project, which is being developed as one of Madagascar's leading independent power producers. The Company's tin interests are held through its shareholding in AIM listed AfriTin Mining Limited.
The Company's approach to project development recognises that, whilst attractive project economics are imperative, they are insufficient to secure capital to bring them to account. A clear path to production within a visible timeframe, low capital expenditure requirements and scalability are important factors in ensuring a positive return on investment. This philosophy is core to the Company's strategy in developing projects.
Detailed information on the Company and progress to date can be accessed on the website www.bushveldminerals.com
About Bushveld Energy Limited
Bushveld Energy Limited is an energy storage developer and component manufacturer focusing on the African market, with registered offices in Mauritius and a wholly owned subsidiary in South Africa. Bushveld Energy recognises that electricity in Africa intersects paramount potential for social transformation with an immense commercial opportunity.
Launched in 2016, Bushveld Energy is focused on developing and promoting the role of vanadium in the growing global energy storage market through application in vanadium redox flow batteries. Its near term strategy is to deploy several VRFB systems as part of its longer term vision to become a significant electricity storage provider in Africa by 2020, meeting the demand for utility scale energy storage in Africa by leveraging South Africa-mined and beneficiated vanadium.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
Latest directors dealings
- 12 minutes ago Vanquis Banking Group 20
- 2 hours ago Frasers Group
- 2 hours ago Cavendish Financial
- 2 hours ago Diaceutics
- 2 hours ago AB Dynamics