Ferro-Alloy Resources is developing the Balasausqandiq vanadium deposit in southern Kazakhstan, with plans to increase production through a phased mining and processing operation.
The deposit contains vanadium alongside potentially valuable by-products, including carbon, molybdenum and uranium. The company plans to develop the project in two phases, initially processing 1.65 million tonnes of ore annually before expanding to around five million tonnes per year.
Balasausqandiq differs from many conventional vanadium deposits because its sedimentary ore does not require pre-concentration or high-temperature roasting. This could reduce processing costs and energy requirements compared with more conventional extraction methods.
The company has identified an indicated mineral resource of 32.89 million tonnes grading 0.62% vanadium pentoxide in the first ore body. Six ore bodies have been identified, with evidence of a possible seventh, providing scope for further resource evaluation.
Ferro-Alloy Resources plans to use the first phase to establish production before expanding capacity. The phased approach is intended to manage construction and engineering risks, limit initial funding requirements and allow production growth to develop alongside demand for vanadium.
The metal is primarily used to strengthen steel, including construction steel and specialist alloys. It also has applications in vanadium redox flow batteries, which can store energy for extended periods in stationary power systems. Demand from both established industrial uses and energy storage could influence the project’s long-term commercial prospects.
The deposit also contains carbon that the company has tested as a potential partial substitute for conventional carbon black in rubber manufacturing, including tyre applications. Molybdenum and uranium are additional by-products under consideration for recovery.
Alongside the development project, Ferro-Alloy Resources operates a processing facility that treats purchased vanadium-bearing materials and recovers vanadium, molybdenum and nickel products. This operation provides an existing source of activity and experience in processing ahead of the planned development of Balasausqandiq.
Ferro-Alloy Resources Ltd (LON:FAR) is developing the giant Balasausqandiq vanadium deposit in Kyzylordinskaya oblast of southern Kazakhstan. The ore at this deposit is unlike that of nearly all other primary vanadium deposits and is capable of being treated by a much lower cost process.
