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| Bushveld Minerals |
Bushveld Minerals, a key producer of vanadium, has retracted its production guidance for 2024 due to ongoing liquidity issues that have forced a slowdown in operations at its Vametco complex.
The South African company, which specializes in vanadium production, confirmed that it could no longer sustain the planned production levels. This announcement comes as a result of financial difficulties that have made it impossible for the company to continue at its previous output levels. Bushveld noted that the rate at which it can secure additional funding will determine when production at Vametco can return to normal.
In July, Bushveld had projected its full-year vanadium output at 3,800 to 4,000 metric tonnes (t) across its two major operations: Vametco and Vanchem. Vanchem, which produces ferro-vanadium and vanadium pentoxide, has also been affected by the financial instability.
To resolve its financial issues, Bushveld is in the process of finalizing the sale of its Vanchem asset to Southern Point Resources. The transaction is expected to close by the end of the month, with the proceeds providing much-needed capital to help stabilize the company’s operations and fulfill its long-term production goals.
Despite the setback, the company remains optimistic that the sale will provide the liquidity needed to continue its operations and meet future production targets. Bushveld's decision to pull its production forecast underscores the challenges currently facing the vanadium sector, including the fluctuating prices of vanadium and the company's operational constraints.
The company emphasized that, once the sale of Vanchem is finalized, it will reassess its production strategy and potentially reintroduce more aggressive growth plans.
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