(Ecofin Agency) - Mustang resources published Maiden Resources Declaration for its Caula vanadium/graphite mine in Mozambique, reporting 22 million tons of measured resources at 0.37% vanadium pentoxide (V2O5). This translates into 81,600 tons of vanadium, thus 180 million pounds.

According to MD Bernard Olivier, the combination of graphite and vanadium resources shows that “the Caula resource translates to a highly valuable resource.”  While the vanadium market is blooming, this untapped resources declaration is timely as the company plans to become the leading graphite and vanadium producer. For the record, a ton of vanadium pentoxide is currently traded at over $40,000 and the Chinese demand is growing. Figures from Mining Journal last June 28 shows that China’s requirements grew 15% in April-May “as steel mills want to switch to the production of stronger steel”.

Let’s mention that in 2017, overall vanadium volume used in devices’ batteries reached 3,000 tons, double the volume in 2016.  In regard to the price of vanadium and the market situation, Mr Olivier said Caula project has a “huge” economic potential.

Louis-Nino Kansoun