StockMarketWire.com - Vanadium producer Ferro-Alloy Resources said it had started production of ferro-molybdenum and vanadium pentoxide.

In October 2020, the company started to recover molybdenum in the form of calcium molybdate as a by-product during the recovery of vanadium from bought-in raw-material concentrates.

Calcium molybdate was sold at a discount to the published price for the contained molybdenum. In an effort to avoid the discount, the company said it was now converting this calcium molybdate to ferro-molybdenum.

The company has contracted for delivery of an electric arc furnace, expected to be commissioned in the first half of 2022.

'This will be the last step in the current plans for the existing processing operation which is expected to bring vanadium production up to 1,500 tonnes (vanadium pentoxide equivalent) per year, as well as greatly reducing costs to make ferro-vanadium and enabling the production of ferro-nickel,' the company said.

'The necessary connection of the plant to a high-voltage powerline and a 1,000 square metre process-plant extension have already been built in readiness for this equipment,' it added.


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