note - Glencore will actually come to the site itself and literally ‘pick it up’- such is vanadium’s importance and demand Shares of Largo Resources hit record high in expectation of the start of production
Posted on July 23, 2014 by Alessandro Bruno
Canada’s Largo Resources (‘Largo’, TSXV: LGO) is about to launch production at the largest vanadium mine in Brazil and the first vanadium mine of the Americas. It is located in Maracas, Bahia state. With an estimated investment of over USD$ 550 million, the mining company will have an initial capacity to produce 9,600 tons of vanadium oxide annually at a cost of about USD$ 5.50 to USD$ 6.00 per kilogram. This means that the Maracas Vanadium will be the lowest cost and highest vanadium content mine in the world. The state of Bahia, in turn, will become the largest supplier of vanadium in Brazil. The mine is close to Porto Alegre and it is expected to generate some 300 well paying jobs at the start of operations and 400 new jobs when it reaches full capacity. In late May, Largo said it had begun feeding vanadium concentrate into the kiln and this week the Company’s stock has been trading at an all time high of CAD$ 0.35/share in expectation of the imminent launch of commercial production as some 10,000 tons of vanadium concentrate are ready to be fed to the kiln. Largo has an offtake agreement to supply Glencore International with 100% of its vanadium for six years. Under the agreement, Largo will not have to worry about shipping because Glencore will actually come to the site itself and literally ‘pick it up’- such is vanadium’s importance and demand.
- See more at: http://investorintel.com/rare-earth...tation-start-production/#sthash.nOcOMags.dpuf
SYR Price at posting:
$5.58 Sentiment: None Disclosure: Not Held
TON Price at posting:
69.0¢ Sentiment: None Disclosure: Not Held
