Yixin Mining to Commence Construction of Vanadium Pentoxide Flake Project

BEIJING (Asian Metal) 30 May 19 – Guizhou Yixin Mining Co., Ltd. will commence construction of a vanadium pentoxide flake project in late 2019, expecting its Phase One production capacity to reach 1,000tpy, a source from the company revealed.

“We have our own stone coal resources. With such an advantage in raw material, we plan to build a vanadium pentoxide flake project. With a total designed production capacity of 3,000tpy, the proposed project will consist of three production lines and will be built in three phases, with each line having a capacity of 1,000tpy. We are undertaking the regulatory procedure now and expect to be able to commence construction of the first production line at the end of 2019 and to commence pilot production of vanadium pentoxide flake in Q2 2020,” the source said. “According to the new policy, government won’t approve construction of a new vanadium pentoxide flake project unless its annual production capacity is 3,000t or over, so our project is designed as a three-phase project. We plan to commence Phase One construction at the end of this year and construction of the other two phases will depend upon how Phase One goes on.

Located in Yunyan district, Guiyang city, Guizhou province, the company will become the first local producer of vanadium pentoxide flake when the proposed project is built and goes into operation.

Currently in China, mainstream prices for vanadium pentoxide flake 98%min stay at RMB117,000-120,000/t (USD16,924-17,358/t) EXW D/A 180 days, unchanged from early this week. Downstream demand for the material is weak now; but as large-sized producers rally to keep their prices unchanged, the downward movement in vanadium pentoxide flake prices is slowing down notably, and insiders believe that mainstream prices for Chinese vanadium pentoxide flake would remain relatively stable in the coming week.