Kazakhstan-based vanadium producer Ferro-Alloy Resources, a British company developing the Balasauskandyk deposit in the Kyzylorda region, has applied for financing from US government agencies and begun studying the possibility of mining rare-earth yttrium as an additional product, reports infohub.kz.
In a strategic update on AIX, the company said it is in talks with several US government institutions interested in supplies of critical minerals. Ferro-Alloy Resources has already submitted initial applications for grant funding, as well as concessional debt and equity investments.
In addition, the company is discussing with potential partners options for integrating ferrovanadium production into supply chains for the US steel and defense industries. Options under consideration include partnership, merger, or other forms of cooperation.
Another development direction could be the extraction of rare-earth elements. The company has begun research on extracting yttrium from Balasauskandyk ore. According to Ferro-Alloy Resources, the yttrium content in the deposit is about 100 grams per ton of ore, and the current price of yttrium oxide outside China reaches approximately $1,200 per kilogram. The company estimates the potential value of yttrium reserves in the deposit at about $4.57 billion, but emphasizes that the final project economics will depend on the metal recovery rate and processing costs.
In parallel, Ferro-Alloy Resources is developing its existing production. The company has received a preliminary order for 20 tons of carbon black substitute from an agricultural tire manufacturer and continues product testing with Master Tyre for passenger tires.
The existing plant has also modernized the processing technology for vanadium-containing catalysts, increasing production capacity by approximately 58%. Additionally, the company received a $500,000 grant from the Kazakhstan Science Foundation and signed contracts for prepayment of future vanadium and molybdenum product deliveries totaling $2 million.
Ferro-Alloy Resources is developing the Balasauskandyk deposit in the Kyzylorda region. The company calls it one of the largest vanadium projects in the world. According to previously published feasibility study results, the project's net present value is estimated at $748 million, and after a preliminary review of capital costs, it could rise to $932 million.
The largest shareholder of Ferro-Alloy Resources Limited is private investment fund Vision Blue Resources Limited with a 22.5% stake. Operations Director and one of the key managers of the Kazakh project, Andrei Kuznetsov, owns 12.1% of shares, and CEO Nick Bridgen owns 10.7%. The remaining shares are distributed among private investors and are in free float on the market.
Earlier, Kursiv reported that Ferro-Alloy Resources is preparing to invest $500 million in vanadium development in Kazakhstan.