City Of Pori MOU Signed For Vanadium Recovery Project
Neometals Ltd (ASX: NMT) has successfully completed a European site selection study with the City of Pori in Finland chosen as the preferred location for sustainable vanadium recovery and production.
Commitments by Neometals’ partner, Critical Minerals Ltd and the City of Pori have been formalised in a Memorandum of Understanding (MOU). The MOU sets out the framework under which the parties will work together for the granting of tenure and permits required for the successful establishment of the proposed vanadium processing plant.
Neometals has executed a collaboration agreement with Critical, to jointly evaluate the feasibility of constructing a VRF to recover and produce high-purity vanadium products from vanadium-bearing steel by-product (Slag) in Scandinavia Neometals will fund and manage the evaluation activities up to consideration of a final investment decision, which, if positive, will earn Neometals a 50% interest in an incorporated joint venture with Critical.
Critical has executed a conditional agreement (Slag Supply Agreement) with SSAB EMEA AB and SSAB Europe Oy, subsidiaries of SSAB, a steel producer that operates steel mills in Scandinavia. Slag is a by-product of SSAB’s steel making operations. The Slag Supply Agreement provides a secure basis for the evaluation of a potential VRF capable of processing 200,000 tonnes of Slag per annum without the need to build a mine and concentrator like existing primary producers.
Tahkoluoto port in Pori is an excellent location. It is an ice-free harbour with capacity to receive Panamax sized ships. With Pori’s long history as a centre of hydrometallurgical excellence, the VRF will have access to ‘best-in-class’ logistics and infrastructure. Additionally, the Finnish government appears extremely motivated to provide significant support to align with EU targets for ‘Net Zero’ emissions and development of resilient supply chains for critical minerals.
Managing Director, Chris Reed, said that with a location chosen for the processing site, Neometals can now rely on high quality and timely site related information to be fed into the AACE Class 4 preliminary feasibility study (PFS). The PFS is progressing well and remains on track to be completed by the end of June 2021. Our attention now centres on the design phase of the larger proposed pilot and assisting with site permitting in Finland ahead of a financial investment decision by the end of 2022.
“Neometals is excited to be working with the City of Pori and the Finnish Government who have been exceptionally proactive in securing this sustainable critical mineral opportunity for the region,” Mr Reed said.
“Neometals has made an active pivot towards more sustainable materials recovery and recycling projects to remove the huge carbon footprint of the supply chain that comes from traditional upstream mineral processing.
“The Vanadium Recovery Project demonstrates our resolve to optimise finite resources with circular practices to benefit society and the environment for a sustainable future. Together with project partners Critical, we are firmly focused on building the first European low-carbon vanadium production facility at Pori.”
