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Ajlan and Bros Mining and Metals (Ajlan) could invest in Australian mineral exploration company Surefire Resources’ vanadium mine in Australia and bring vanadium magnetite to Saudi for processing. The two said yesterday (pdf) that the non-binding memorandum of understanding relates to Surefire’s Victory Bore project.
SOUND SMART- Vanadium can be used to strengthen steel and is a key component of large-scale battery storage solutions. It’s also used as a catalyst, in medical implants, pigments, and the production of some basic chemicals.
Surefire already has a plan: The Australian company plans to produce c. 1.25 mn tons per year of premium vanadium-titanium magnetite concentrate at its Victory Bore project before it is shipped to the Kingdom. It aims to produce up to six products, including iron ore, high purity iron oxide pigment and others, using the concentrate at a processing facility in the Kingdom.
Expect the agreement to close over the summer: Both parties will conduct talks towards executing binding agreements on the potential JV and investment by Ajlan in July. Talks could be extended beyond the deadline by mutual agreement.
SMART POLICY- Surefire wants to access incentives in the Kingdom for mineral projects, according to the statement. “The Kingdom is a low power and utilities cost jurisdiction providing the company with significant operating cost advantages and has significant funding incentives available of up to 75% of capital expenditure for mineral processing projects,” it said.
