SMM Flash News: Vanadium Resources Signs Two-Year Ore Supply Deal with CPAL, Finalizing Pricing by August 30

Published: Jul 25, 2025 18:23

Save

[SMM Flash News] Vanadium Resources, a subsidiary of VR8 listed in Australia, signed a two-year binding off-take agreement with China Precious Asia (CPAL), a Chinese trading company, to supply it with vanadium-rich magnetite ore from its South African project. According to the agreement, Vanadium Resources will supply CPAL with approximately 1.2 million mt of vanadium-rich magnetite ore annually. However, VR8 stated on July 22 that, given the lack of standard spot prices, it would finalise the pricing terms of the agreement with CPAL by August 30. It also needs to confirm the compliance of contractors participating in mining and product specifications by November 30.
The group owns the Steelpoortdrift project in the northern Limpopo Province of South Africa. The project has a total mineral resource of 680 million mt, with an average vanadium pentoxide content of 0.7%. VR8 plans to produce the first batch of concentrate and vanadium flake from July to December this year. However, it has started exploring the production of direct shipping ore (DSO) to monetise the project in the short term. The project has been suspended, and cost-reduction measures have been implemented as the company seeks "strategic equity partners or development options" to save the project. According to VR8's latest quarterly activity report, as of the end of March, VR8 and its subsidiaries held only A$218,000 ($141,700) in cash and cash equivalents.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

1 hour ago

A mine in Henan opened bids for a 300 mt tungsten concentrate auction on February 6.

[Tungsten Concentrate Tender Information] SMM February 7: A mine in Henan conducted an online tender on February 6 to sell 300 metric tons of low-grade tungsten concentrate. Lot A had an average WO3 grade of ≥25%, while Lots B and C had an average WO3 grade of ≥22%. The tender results for each lot are as follows: Lot A: 100 metric tons, tender price of 10,155 yuan/mtu. Lot B: 100 metric tons, tender price of 10,160 yuan/mtu. Lot C: 100 metric tons, tender price of 10,155 yuan/mtu.

1 hour ago

Ganzhou Tungsten Association Significantly Raises Tungsten Price Forecast for February 2026

[Ganzhou Tungsten Industry Association's February Tungsten Price Forecast] The Ganzhou Tungsten Industry Association's forecast prices for the tungsten market in February 2026 are as follows: 55% black tungsten concentrate at 670,000 yuan per metric ton unit, up 210,000 yuan per metric ton unit MoM from the January price, an increase of 45.65%; ammonium paratungstate at 970,000 yuan/mt, up 300,000 yuan/mt MoM, an increase of 44.78%; medium-grain tungsten powder at 1,630 yuan/kg, up 480 yuan/kg MoM, an increase of 41.74%.

1 hour ago

Tungsten Market Rallies Strongly, Long-Term Contract Prices Surge & Domestic-Overseas Markets Link Up

Driven by tight spot raw material supply, a sharp hike in corporate long-term contract prices and festive effects, the tungsten market saw price rises on shrinking volumes this week with domestic and overseas markets moving up in tandem; the strong short-term trend is set to continue, and attention should be paid to the resumption of cemented carbide production, scrap tungsten supply and downstream demand release after the Spring Festival.

1 hour ago