Bushveld Minerals

Bushveld Minerals owns two of the world’s four operating vanadium-processing facilities and is one of only three operating primary producers globally. Its portfolio of companies includes Bushveld Vanadium, which mines and processes vanadium, and Bushveld Energy, which is a leading energy storage-solutions provider and project developer exclusively focused on vanadium-based energy-storage systems called vanadium redox flow batteries (VRFBs).

Bushveld’s vertical-integration strategy means it can mine, process and manufacture vanadium-based products in a single value chain, providing the flexibility to mitigate capital requirements in a volatile pricing environment and maximise sales, depending on product demand dynamics. This vertically integrated business model has been nurtured from the beginning to enable Bushveld Minerals to operate and develop innovative products and solutions that supply this nascent yet high-growth sector. Bushveld’s diversified product portfolio for the steel, energy and chemical sectors accounted for 3% of the global vanadium market in 2021.

The company’s mining and processing assets are located in South Africa, which hosts the largest high-grade primary deposits of vanadium in the world. Bushveld Minerals’ vanadium grades, at 1.6% to 2% V2O5 inmagnetite, are among the highest globally.

Bushveld Vanadium’s principal vanadium operations are the Vametco vanadium mine, located in the North West province’s Brits, and a processing plant that produces Nitrovan, a trademarked vanadium nitrate micro alloy product. The Vanchem plant – based in Emalahleni, Mpumalanga – is a primary vanadium-processing facility with a beneficiation plant capable of producing various vanadium oxides, ferrovanadium and vanadium chemicals.

Bushveld minerals’ vanadium grades are among the world’s highest

Following the acquisition of these two producing assets in 2017 and 2019, the company is establishing a sizeable global vanadium platform, with significant further growth potential. Through Bushveld’s acquisitions and investments, it increased production substantially between 2017 and 2021, and is currently positioned as a significant producer, steadily ramping up its annual production run rate to 5 000 mtV to 5 400 mtV by end of 2022, with cash-generation potential.

The high-grade deposits are located on the Bushveld Complex. Bushveld Minerals seeks to establish a portfolio of vanadium resources for future development in potential partnerships as the supply deficit deepens and it becomes clearer that primary production is key to addressing this shortfall.

Bushveld is able to supply diverse industries, even though its primary demand is currently in the steel and alloys sectors. This will allow it to grow demand in future by developing the opportunity for vanadium in the energy-storage industry as the world moves towards cleaner energy.

Here the company sees a range of opportunities. These include a burgeoning energy-storage industry that is set to create a steep change in vanadium demand; the company’s unique position in the industry enables it to capture a significant share of the vanadium value chain in the energy-storage industry; and a large, attractive commercial opportunity that can create a natural hedge for the company, as vanadium is one of the most price-volatile commodities.

While vertical integration captures commercial value for the business, it is also essential to unlock the energy-storage opportunity for vanadium.

Bushveld’s asset strategy focuses on identifying constrained brownfield processing infrastructure that is efficient and continues to be refurbished and expanded. The attraction of brownfield processing facilities lies in the potential for significant reductions in capital expenditure and lead-time to achieve production, compared with new-build options. This strategy underpinned Bushveld’s purchase of Vametco in 2017 and Vanchem in 2019, both of which provide the company with a solid platform from which to expand its production base to meet demand in both the steel sector and energy sectors. These two plants give Bushveld the potential to significantly increase its share of the vanadium market while remaining a low-cost producer.

The company’s vanadium product portfolio is diverse and includes nitro vanadium, ferrovanadium, vanadium oxides, electrolyte, and vanadium chemicals. These vanadium products are marketed to steel manufacturers, chemical producers and battery companies.

Bushveld Minerals further identified the fast-growing energy-storage market as a key and attractive downstream industry where vanadium-based battery systems have the potential to take a significant market share. Through its subsidiary Bushveld Energy, the company is actively driving the adoption of VRFBs in the global energy storage industry.

Bushveld Energy’s business model extends across three pillars. These are electrolyte supply, which comprises the production and sale of electrolyte, the highest value component of VRFBs; investment into VRFB manufacturing and local assembly of VRFBs; and battery deployment and project development of megawatt-scale energy-storage projects across the African continent.

The momentum of the energy transition away from fossil fuels and towards clean energy continued unabated in 2021 and was, in fact, given further impetus by the positive outcome of the COP26 climate-change conference in Glasgow.

Such is the momentum of this transition that, according to a forecast published by research company Bloomberg New Energy Finance, deployed energy-storage installations around the world are anticipated to multiply by a factor of 122 to 2 850 GWh by 2040. To realise this, global vanadium production will need to increase by 50% over two decades.

As the company becomes an active player in promoting and enabling the use of more sustainable energy sources, it is equally committed to building sustainable communities and contributing positively towards the lives of all affected stakeholders in its operations.

Bushveld Minerals’ approach to sustainable development is guided by and embedded in three key pillars, namely health and safety; environmental management; and socio-economic development, which are aligned to the UN’s 2030 Sustainable Development Goals.

The company’s guiding principle is zero harm. It aims to instil a work culture based on behavioural management that views safety and health as of paramount importance. Bushveld’s environment stewardship is guided by environmental management programmes, which incorporate plans to proactively address water, land, waste (non-hazardous and hazardous materials) and air-quality management; energy consumption; and greenhouse gas emissions.

Since its inception, Bushveld Minerals has been building meaningful partnerships with the communities in which its operations are based. Its interest is to ensure the local communities see meaningful, sustainable upliftment from the company’s commercial activities. Bushveld Minerals considers its employees, communities and organised labour as an intrinsic part of its business, and it is committed to building sustainable, healthy and co-operative relationships with them. Bushveld operates on a principle of creating value beyond compliance in its socio-economic development initiatives.

This presents an exciting opportunity for Bushveld Minerals as it pursues its growth to ensure the company not only builds sustainable operations but also powers human possibility through the lives of all those who benefit from the company’s success.