There has been plenty of moaning from some in the resources industry that the federal government isn’t doing enough to assist and finance miners and others looking to go deeper into renewable and strategic minerals and their products.
But money is being handed out under the federal government’s Modern Manufacturing Initiative.
With the awarding of more than $49 million to Australian Vanadium (ASX:AVL) this week took the total value of the 16 grants so far to around a quarter of a billion dollars for the manufacturing stream of the initiative.
Fortescue Metals Group’s Future Industries has got a $44 million for its Gladstone green hydrogen electrolyser project, BlueScope Steel will get more than $55 million for its advanced steel project at Port Kembla while there are also grants to aerospace, security companies and aviation groups, as well as for food technology projects.
Lynas Rare Earths got $14.8 million and Core Lithium received a $6 million payment and Arafura Rare Earths received a near $30 million grant for its Nolan’s prospect in the Northern Territory.
Australian Vanadium has picked up one of the larger grants from the federal Government’s Modern Manufacturing Initiative and the Department of Industry, Science and Resources.
Like other grants Australian Vanadium will receive up to $49 million in funding support for the Australian Vanadium project by collaborating with industry partners to create an Australian vanadium battery industry.
Australian Vanadium project is one of the most advanced critical mineral vanadium projects being developed globally that has the potential to produce 11.2 kilotons per annum of vanadium pentoxide over a 25-plus-year mine life.
The grant will fund the constriction and commissioning of a concentrator and a high-purity vanadium processing facility capable of using green hydrogen as part of the extraction process for the project.
The grant will help finance all stages of the vanadium production value chain, from mining and concentrating to vanadium processing for use in electrolyte production.
Under the grant, AVL will also collaborate with Bryah Resources to look at options to extract cobalt, nickel, copper and gold economically from the project.
The grant will be paid progressively over the term of the agreement, subject to milestones and compliance by AVL with its obligations under the agreement.
An initial payment of $9.8 million is scheduled to be received by AVL in this month, followed by three further payments. The final payment is scheduled for August 2025.
AVL chief executive officer Graham Arvidson said “The grant will be of great benefit to AVL as we seek to optimise and finalise our financing and off-take arrangements and continue to move the project forward for the benefit of the mid-west region of Western Australia, and Australia more broadly.”
The Australian Vanadium Project comprises a mine site south of Meekatharra in Western Australia, with a strategically located processing plant close to the port city of Geraldton.
The project has a granted Mining Lease. Open cut mining of the vanadium titanium magnetite orebody will be followed by crushing, milling and upgrading onsite.
The concentrate will be transported to the processing plant for conversion to high quality vanadium pentoxide for sale or further conversion and use in steel, energy storage, catalyst, chemical and defence applications.
The total Mineral Resource of the project is 239 million tonnes at 0.73% vanadium pentoxide (V2O5) consisting of a Measured Mineral Resource of 11.3 million tonnes at 1.14% V2O5, Indicated Mineral Resource of 82.4 million tonnes at 0.70% V2O5, and an Inferred Mineral Resource of 145.3 million tonnes at 0.71% V2O5.
The mineral resource figure includes an estimation of cobalt, nickel and copper.
Australian Vanadium shares rose 5.7% to 3.7 cents on Thursday.