Technology Metals Australia has struck a deal with Indian steelmaker Tata Steel, for the purchase of vanadium products from its Murchison Technology Metals Project (MTMP) in Western Australia.
The metal is used extensively in steel alloying processes, increasing its strength and wear resistance, it is found in 65 minerals including magnetite from which it is extracted using chemical processes.
The non-binding Memorandum of Understanding (MoU) will see the two companies engage in negotiating an offtake deal for Technology Metals’ vanadium pentoxide, and other downstream vanadium products.
The discussions could see Tata Steel invest in Technology Metals Australia and its Murchison Technology Metals Project.
The agreement was accelerated by the Western Australian Government’s recent resources trade mission to India in July 2022, the state’s largest-ever international trade delegation.
The Invest and Trade WA mission was led by State Minister for Development, Jobs and Trade, Roger Cook, who shared his support for the companies’ commitment.
“Congratulations to Technology Metals and Tata Steel for entering into this MOU, which has the potential to deliver benefits for both companies, as well as Western Australia and India,” Mr Cook said.
“It is a prime example of how our recent mission to India has opened doors, leading to greater investment and collaboration between WA and India.”
Tata Steel is the tenth largest global steel producer, generating an annual consolidated turnover of nearly US$33 billion for the 2022 financial year and boasting a yearly crude steel production capacity of 34Mtpa.
Tata Steel’s Vice President Group Strategic Procurement, Rajiv Mukerji, said the vanadium product was critical to the company’s steelmaking process.
“Vanadium is a key component in Tata Steel’s steelmaking process to increase strength and reduce weight, and as our customers increasingly look to reduce their carbon emissions, we anticipate demand for these products to grow,” Mr Mukerji said.
“Working with Technology Metals Australia Limited on opportunities surrounding primary vanadium and ferrovanadium production aligns with Tata Steel’s strategy to ensure reliable, stable supplies of raw materials to meet our customers’ future product requirements.”
Located 50km south of Meekatharra, Technology Metals’ MTMP includes the Gabanintha and Yarrabubba vanadium deposits and is one of the highest-grade vanadium projects in the world.
Technology Metals’ Managing Director, Ian Prentice, said the high-purity product offered reduced emissions when compared to low-quality alternatives.
“Technology Metals is very excited to be partnering with Tata Steel, one of the world’s largest steelmakers, as well as furthering Australia’s important trade relationship with India,” Mr Prentice said.
“High purity vanadium pentoxide from the MTMP is important in producing lower emission ferrovanadium and vanadium nitride, which Tata Steel utilises in its steelmaking process.
“Together, we can play an important part in reducing emissions in steel applications as the world progresses towards net zero carbon emissions.”
