Mastermines

#NEWENERGY #VANADIUM & #CHINA consultants. Seek independent financial advice. Opinion only #Mastermines

[Mastermines @VanadiumWorld]

Please note that all @vanadiumworld news is now at
@Mastermines_HQ
We will be spending more time in China and need to consolidate our time.
Now one site for all #China mining news

[Ian Zhang @SinaMin_CN]

Lunar New Year has finished last week and #China is back on business.

Based on the recent discussion I've had in China about #Vanadium - demand is increasing at a fast pace for #VRFB.

Despite the reform in new rebar standard in late 2024, we've yet seen any sort of substantial increase in V consumption in #steel.

Can't speculate much as to what's going on now. Am planning a trip to China to have some in-depth discussion with steel mills, VRFB manufacturers and potentially LVFP companies.

[Mastermines @VanadiumWorld]

@WeberQMr ..and you know that... how?

[Mastermines @VanadiumWorld]

> #Vanadium is not as reliant on the tech side as #Lithium However the reliance on the right Chinese company for finance is paramount imo.

[Mastermines @Mastermines_HQ]

So, some may say #lithium has had its day in the sun. Way back in 2018 we predicted both the huge rise in EV's as well as the stall period around 2025.
However, anyone that thinks this ship has sailed is wrong imo. The Chinese are decimating auto manufacturers in Europe, Asia (the Japanese) and the U.S. This is an unstoppable tidal wave of manufacturing power.

All that will happen, (and its already started) is that the Chinese will take their model outside China and will find a way around foreign government restrictions. They are masters at it. Look at what they are doing to the Japanese in Thailand or Volkswagen closing at least 3 Euro plants. Look at the partnerships they are forming.

Analog auto is dying and digital auto will not be stopped. Forget looking at percentage increases. They cannot grow in double digits forever. Instead look at the unit growth. There are still many opportunities to come for both investors and miners imo. I expect steady but measured growth over 2025/26 with the next surge starting 2026/2027. However, mine is just a guess just like every single expert out there with their fancy charts. They don't work in disruptive markets.

https://t.co/iwHBKEBB9m

[Mastermines @Mastermines_HQ]

So, there are a number of prospective #lithium #vanadium #graphite etc resources that are sitting there right now stalled and waiting for finance to the stage where investors believe they are invested in a lifestyle company that never moves. This is the reality of small cap miners and why many are valued so low right now.

The question is, who really wants to create and mine and create it fast and how is that possible in the normal snail's pace that most move?

The reality is that almost all resources need China for either offtake, finance, JV, sale etc.

Most investors and management of small cap resource stocks have no idea of how #China works and why it can be so exciting for investors and management.

The fact is that they can make things happen. but it takes SUBSTANTIAL commitment from management to gain their trust. It also takes a management that is pro-active and actually wants to mine rather than create a personal lifestyle.

I will talk more on the China model in coming months because I see so many stalled resources out there that it's alarming. However, to give you one example. We all know ScopingS , PFS, DFS, BFS and the multitude of studies before most think they can mine. In China you can forget that. Even if you are at scoping study stage, good resources can find a Chinese partner because they don't care for the rest. They want a scoping study and a committed management.

If you would like some insight, you can watch the video below which is a HMS resource that found a Chinese partner. It shows how everything can change. There are other advantages not mentioned but the advantages are many and particularly in Africa which will be the next resource hotspot.
https://t.co/EUj7YVSnLu

[GOFlowBatteries @FlowBatteryNews]

China’s Rongke Power completes ‘world’s largest’ #vanadium #flow #battery

We visited Rongke, Bolong and the researchers long ago. Then we found the proposed site when there were just some minor earth works happening. Great to see it come to reality.

https://t.co/hftVF5xEHg

[Ian Zhang @SinaMin_CN]

#China #Vanadium price have gone below US$5/lbs again since late November.

Less activities than usual in #steel industry. Expect the market to remain quiet until Chinese New Year finishes in early Feb.

[Mastermines @VanadiumWorld]

So, there are a number of new mines now ready to make the final investment decision. What do you see as the major impedement that they face and how will they overcome? What are your expectations for the future?
Please add your who, when and why to the discussion.

[Mastermines @VanadiumWorld]

When I'm asked about #vanadium I'm usually coy. It is not a story or an industry future that can easily be explained. A few points that I am personally certain of.

In my opinion it is likely that only one new mine could come online in the next five years and then only if they have management prepared to give their all to what is a tough journey.

In the next few posts we'll discuss the obstacles they all face along with the reason we still think one could make it.

[Mastermines @VanadiumWorld]

While most in the west are blissfully unaware, #China has been undergoing the establishment of massive #vanadium and #titanium industrial parks that are the fundamental in understanding the key dynamics of this industry.

When it comes to processing they can get blood from a stone. When it comes to development it's all about speed. It is quite remarkable what they can achieve. The fact that they find western enterprises as ridiculously slow is no surprise.

The fact is that you need China for any new Vanadium mine (or just about any metal or mineral) and the key is who, what and how you go about it. Almost all get is wrong. That's why so many projects stall at the funding, JV or binding agreements stage.

[Mastermines @VanadiumWorld]

New math model to simplify #vanadium #battery production.
https://t.co/jRvtJdnA9s

[Ian Zhang @SinaMin_CN]

#Vanadium price rise by more than 10% after #China stimulus.

#V2O5 last traded US$5.19/lb on the last day of September.

Interesting times ahead...

[GOFlowBatteries @FlowBatteryNews]

South Korea-based H2, Inc will deploy a 1.1MW/8.8MWh vanadium flow battery (VFB) in Spain in a government-funded project. https://t.co/biscgEGjpK

[Mastermines @VanadiumWorld]

FUNDING for Vanadium mine development?

From #largo #vanadium 2024 Q2 highlights Net loss of $14.5 million (including $8.5 million in non-recurring items) vs. net loss of $6.0 million (including $1.1 million in non-recurring items) in Q2 2023; Basic loss per share of $0.23 vs. basic loss per share of $0.09 in Q2 2023

So, no I do not think any vanadium project is likely to attract bank or wealth fund finance based on the past 10 years of history. The reality is that vanadium has been way too volatile and the history of Largo shows that. This is why existing mines have been increasing supply when needed rather than it being an easy entry for new mines.

The future is about partnerships with (probably Chinese) partners that have the vision and capability. The most likely scenarion imo would be a JV with a Chinese entity. Which is why I simply do not understand why the past years have not had a heavy China focus for future vanadium mines.

The kind of partneship needed can take years to develop. In addition the "real" partners are almost never obvious and often hidden behind multiple onion layers that lead to an "impression" of who is behind it and they need to be the "real" China money. That's very complicated but those entities really exist.

They will never impress investors because they are designed NOT to be obvious or in the limelight.

[Mastermines @VanadiumWorld]

> China #Vanadium Titano-Magnetite Mining Co is facing litigation over debts from subsiduaries.

Industrial and Commercial Bank of #China has made payment demands for guarantees over debts for Huili Caitong of 68 million RMB and Huili Xiushuihe of 19 million RMB. The company is exploring alternatives for repayment and restructuring options.

[Ian Zhang @SinaMin_CN]

Final piece for the 2024 #China #Vanadium #Steel #Rebar standard.

How CCP prevents cheating, down to the microscopic level.

As we all know, 2018 Rebar standard did not go as well as CCP would’ve liked. People were innovative and coming up with different workarounds to use less Ferroalloys like #Vanadium, #Niobium and #Manganese to produce standard-compliant rebars.

They have included pictures, on how the rebar should look like under microscopic level.

Some of you who have been in the steel game long enough know exactly what these are. Different percentage of pearlite/martensite can be formed depending on how the steel are processed and cooled.

In rebar however, ferrite and pearlite are the preferred core structure, with martensite on the outer layer. Martensite is the hardest and strongest, but very brittle. With uncontrolled cooling technique like water-quenching, microstructure of a rebar will be largely martensite, both in inner core and outer layer.

Preferred form of rebar is to have inner core pearlite + ferrite, and martensite on the outer layer.

This is particularly important for earthquake standard rebar. This allows the more flexible core to sway with the force while strong enough for martensite to bring its core back to its original position.

Cracks will form when an earthquake hits if the core’s microstructure is dominated by martensite. If the core starts failing, the whole structure will be unstable.

There have been too many accidents due to structural failures in China that CCP is finally taking a strong stance in enforcing the 2024 standard. We do not expect them to soften their stance at all.

However, the challenge of steelmakers clearing their stock remains - we expect that steel rebar price to remain weak, and will be affecting #ironore until or close to enforcement date. They will be dumping everything they have into China market, or they could export them out before the date, and discounts will be provided. Makes sense for them to do so to at least recover part of their costs and make tiny loss, rather than recover nothing & making major loss.

[Ian Zhang @SinaMin_CN]

Another #Vanadium VRFB soon to be connected to the grid in #China

Stage 1 of 50MW/200MWh is almost completed and connected to grid.

Stage 1 is just part of the 250MW/1000MWh project.

At current Vanadium price, expect more and more VRFB to be continue deployed throughout the country.

[Mastermines @WorldGraphite]

People also forget that the Chinese may have different reasons for investing in new mines. Such as
- Protecting IP away from China
- Moving funds from China
- Moving family from China
- Establishing manufacturing away from China
- Avoiding China environmental regulations

[Ian Zhang @SinaMin_CN]

#China #Vanadium spot last traded at RMB79500/t, or
US$5.03/lb.

We have been monitoring the market and talking to steel mills. As previously mentioned - In preparation for the upcoming rebar standard they're giving discounts and exporting whatever stocks they have. So expect negative sentiment to continue for #Steel and #IronOre

Yet to notice any impact because steel mills that are producing newly compliant rebars are only producing enough to build their inventory. Many are taking a sit-and-wait approach.

[Mastermines @VanadiumWorld]

The #Queensland Critical #Minerals and #Battery Technology Fund (QCMBTF) will commit up to A$5 million to advance the North Queensland #Vanadium Project (NQVP).
https://t.co/iGP5enWrGK