Ferro-Alloy Resources to Supply V2O5 from Kazakh Project to LL-Resources

Ferro-Alloy Resources

Ferro-Alloy Resources (FAR), a leading vanadium producer, has signed a non-binding offtake term sheet with LL-Resources for the sale of the entire vanadium pentoxide (V2O5) output from Phase 1 of its Balasausqandiq project in southern Kazakhstan. This agreement marks a significant milestone for FAR as it progresses toward becoming a major player in the global vanadium market.

The initial agreement spans six years from the start of production, with an option for extension. This partnership ensures a steady demand for V2O5, a critical material used in steel alloys, aerospace applications, and vanadium redox flow batteries (VRFBs), which are essential for renewable energy storage.

Overview of the Balasausqandiq Vanadium Project

The Balasausqandiq project is a two-phase development targeting an annual output of 22,400 tonnes of V2O5.

• Phase 1: Will process 1.65 million tonnes per year (mn t/yr) of ore.

• Phase 2: Aims to scale up processing to 5 mn t/yr of ore, significantly boosting production capacity.

As of May 2023, the project boasts an indicated mineral resource of 32.9 mn tonnes at an average grade of 0.62% V2O5, equating to 203,364 tonnes of contained V2O5. The ongoing feasibility study for Phase 1 is expected to conclude by Q2 2025, offering greater clarity on production timelines and potential.

Strategic Importance of the Offtake Agreement

The collaboration with LL-Resources provides FAR with a reliable trading partner and reinforces its position in the growing vanadium market. Vanadium pentoxide, particularly in its standard form, is crucial for strengthening steel and as a key component in energy storage systems like VRFBs. The agreement aligns with increasing global demand for critical minerals driven by renewable energy adoption and infrastructure development.

Kazakhstan: A Growing Hub for Vanadium Production

Kazakhstan’s rich mineral resources and strategic location make it a rising hub for vanadium production. The Balasausqandiq project adds to the country’s portfolio of critical materials and underscores the potential for Kazakhstan to play a key role in the global supply chain for critical metals.