- Listed Australian mining company, Vanadium Resources, has signed a partly-binding memorandum of understanding (MoU), with China Energy International Group Co. (CEIG), to develop the Steelpoortdrift Project in South Africa which includes a solar plant.
Under the MoU, it is contemplated that CEIG will assist Vanadium Resources in securing debt financing for the project, and where feasible, introduce the company to potential strategic equity providers.
The parties anticipate that CEIG will provide assistance and support in the financing of the construction and commissioning of the solar plant and all other associated services.
Vanadium Resources, which has a market capitalisation of $21.37 million, says the proposed debt financing activities are intended to run in conjunction with the company’s existing debt funding process, which is well-advanced.
Now that the MoU is in place, Vanadium Resources’ current competitive tender process has been terminated. EPC packages for each component of the project have been collated and are expected to be delivered to CEIG during the MoU, which will assist CEIG with preparing a competitive bid for Steelpoortdrift.
Last month, Vanadium Resources revealed it is expecting to begin mine and concentrator construction at Steelpoortdrift in the third quarter of 2025.
Once construction is underway, early concentrate production will begin, while expediting operating cash flow. The salt-roast-leach plant construction is expected to begin after the first quarter of 2026.
China Energy International is a subsidiary of China Energy Engineering Group (CEEC), which was established in 2011. CEEC is a comprehensive, central-level state owned enterprise and energy conglomerate that provides systematic, integrated, full-cycle and comprehensive development plans and services.
Vanadium Resources is focused on becoming a vanadium producer to provide a reliable and secure supply of vanadium to meet global market demands.
Author: Bryan Groenendaal
