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http://www.australianminesatlas.gov.au/info/aimr/vanadium.jsp

1. Vanadium
2. Resources
3. Exploration
4. Production
5. Industry Developments

Vanadium

Vanadium is used in metal alloys with iron to produce high strength steel which has a wide range of uses including the manufacture of axles and crankshafts for the automobile industry, and jet engines for the aircraft industry. Mine production accounts for only approximately 20% of annual world production of vanadium, the majority of world production (80%) is a by-product from reprocessing of steel slags, oil refining, and the uranium enrichment industry.

Resources

For 2003, Australia had no EDR of vanadium due to the closure of the Windimurra mine and processing plant, 75 km southeast of Mount Magnet, WA. Xstrata AG reported that the project was not viable in 2002 (refer 'Industry Developments' below) because of continuing low metal prices in recent years. The large reserves for Windimurra, which were formerly considered to be economic (prior to 2002), have been reclassified into paramarginal resources.

Australia currently has very large tonnages of vanadium in paramarginal and submarginal resources within deposits in the Yilgarn region (Windimurra, Gabanintha) and Pilbara region (Balla Balla, Don Well) of WA.

Historically, prices for vanadium pentoxide (V2O5) have varied over a wide range, and as a consequence, Australia's EDR has varied with price trends.

Exploration

There was virtually no exploration for vanadium during the year because of continuing low prices and chronic oversupply in the market. No There was no exploration for vanadium during the year.

Production

In 2003, Australia produced 694 t V2O5 flake (389 t V) valued at $4.665 million, all of this being from Windimurra mine in its final months of operation prior to suspension of production.

Most of the world's mine production of vanadium for 2003 was from China (58%), South Africa (25%) and Russia (15%).

Industry Developments

Production at Windimurra mine was suspended in February 2003, and the mine was permanently closed in May 2004. Xstrata AG declared that operations at the mine and processing plant were not profitable in 2002 (Xstrata Annual report 2002). The profitability of Windimurra was strongly affected by two factors: low prices for V2O5, and the US dollar/Australian dollar exchange rate. Despite increasing demand in recent years, the vanadium market remained in oversupply, which kept market prices for both V2O5 and ferrovanadium (FeV), at low levels. Prices for V2O5 were less than US$1.50 per pound throughout the period 2000 to 2002, and US$1.70-$1.80 for 2003. During the period in which the Windimurra feasibility study was being investigated (1998 and 1999) prices ranged from US$4 to more than US$6 per pound.

Xstrata also operates large vanadium mining/metallurgical operations at Rhovan and Vantech in South Africa.

During 2004, the WA State Government initiated an inquiry into the closure of the Windimurra operations. The inquiry will also investigate the management of vanadium resources at Windimurra, and the impact of management on market price of vanadium and State resources. A report on the inquiry is due to be released by the end of 2004.

During the year, Greater Pacific Gold NL carried out metallurgical test work to determine the commercial feasibility of the process technology for extraction of V2O5 and titanium from the Gabanintha project (40 km SE of Meekatharra). Test work was carried out on drill core samples recovered from large diameter holes which were drilled during the year. The holes were all drilled to a depth of 50 m. Results to date show that the degree of upgrading of the titaniferous minerals was limited by the fine-grain size and intergrowth with iron oxides.