Vanadium: AMG signs agreement with Glencore

AMG Vanadium

Last week, AMG Advanced Metallurgical Group announced that it has signed a long-term agreement to supply 100% of its available ferrovanadium production from both the existing and future Ohio facilities to Glencore.

Roskill View

AMG Vanadium is a secondary producer of vanadium and specialises in the conversion of oil refinery and power plant waste products into ferrovanadium, nickel and molybdenum at its plant in Cambridge, Ohio, USA. The company has long-term, multi-year agreements to process and recycle spent catalysts from major oil refineries.

Roskill believes that secondary vanadium production is set to increase in future as crude oil sulphur content (3.5%) will need to be reduced. Presumably in consideration of this fact, AMG has completed a feasibility study to replicate its existing recycling facility and approved the commencement of engineering work for a twin facility which, once completed, will more than double its spent catalyst processing capability. Subject to permitting, construction is expected to commence mid-2019 with a completion date in early 2021, resulting in over 31,750t of incremental spent catalyst processing capacity and over 6Mlb of incremental ferrovanadium production capacity (2,180tpy V).

News of Glencore’s offtake comes after the August 20th announcement that Largo Resources had formally given notice to Glencore of the non-renewal of its off-take agreement dated May 2008. The off-take agreement will expire effective April 30th, 2020. Thus, the AMG deal guarantees Glencore some additional future material aside from that produced at its Rhovan operation in South Africa.

Roskill’s Vanadium: Outlook to 2028, 17th Edition report was published in March 2019. Click here to download the brochure and sample pages, or to access further information.

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This article was written by Robert Baylis and Jack Bedder. Please get in touch below if you wish to discuss further:

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