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【Ferro-alloys.com】：Australian Vanadium (AVL) has signed a letter of intent (LOI) for the supply of iron titanium coproduct to Tianzhu Steel’s commercial arm, Wingsing International.

The letter of intent will support the development of the Australian Vanadium project in Western Australia for 100,000 tonnes per year.

The company plans to produce about 900,000 tonnes per annum of iron titanium coproduct from the project, as well as 11,000 tonnes a year of vanadium pentoxide.

This is the second letter of intent the company has received, which AVL believes validates the strategic vanadium processing plant location, close to Geraldton Port.

Tiazhu Steel produces 5 million tonnes per year of steel from its mill in Hebei Province, China.

Managing Director Vincent Algar said the agreement strengthens the project’s pathway to funding and development.

“Through our consultant’s tireless work in China we are building brand awareness for the iron titanium coproduct AVL will produce along with its vanadium products,” he said.

“We are establishing relationships directly with some of the country’s top steel producers.
We look forward to working with Tianzhu Steel to supply this unique product which is able to cost effectively improve mill operational efficiency.”

The Platts62 Fines Index Price will be used to determine the price of AVL’s FeTi coproduct.

The LOI is non-binding, and its purpose is to document the buyer’s interest in supporting the project’s development and enable the parties to discuss and agree on a binding ore sale contract.

Negotiations will begin at a mutually agreed-upon time, subject to the project’s development.

The parties plan to finalise the ore selling deal in 2023, with an annual tonnage of 100,000 tonnes.

• [Editor:Alakay]