The recognition is in the form of Major Project Status and it is the only vanadium project in Australia holding this status.
This status provides formal recognition of the national strategic significance of the project, through its contribution to economic growth and employment as well as to regional Western Australia.
“Gives overseas investors comfort”
AVL managing director Vincent Algar said, “Formal recognition of the importance of The Australian Vanadium Project to Australia by the Federal Government demonstrates support and gives overseas investors comfort when considering investment in the project, which is already located in a Tier 1 global mining destination.
“AVL has already defined a vanadium project of significant size and economic potential, and official endorsement by the Australian Government for Major Project Status recognises this.”
The award announcement was made by the Minister for Industry, Science and Technology, Karen Andrews, in conjunction with the Minister for Resources and Northern Australia, Senator Matthew Canavan.
AVL securities are up 36% to 1.5 cents.
Single point of contact
Major Project Status has been awarded for three years and provides a single point of contact for assistance with navigating the approval process and relevant Government legislation.
This streamlined approach has the potential to result in accelerated approvals.
Algar said, “Assistance with the approval process which is currently underway by AVL will be most welcome.
“We are delighted to join the select group of projects awarded Major Project Status and thank the Ministers for valuing the project as we do.”
Major Project Status designation is expected to promote international investment by providing increased confidence in the permitting pathway.
One of 16 projects
This recognises the strategic significance of The Australian Vanadium Project to Australia, with only 15 other projects in Australia holding this status.
In a media statement, Minister Andrews said, “Our Government sees the incredible economic potential these projects offer, not just for the regional areas where they’re located but for Australia more broadly.
“These products are rare and in high demand, and these projects will generate millions for our economy, create jobs in regional areas and bring important permanent infrastructure investment.”
Minister Canavan said, “Vanadium is on the critical minerals list for Australia and the US, which means there is a market there for this globally significant resource.
“This project will have a significant impact on the Western Australian economy, especially the Meekatharra region with the creation of around 400 direct construction jobs and a further 200 ongoing jobs.”
Progressing through studies
AVL is progressing through the feasibility studies required to bring its high-grade vanadium project into production.
A robust pre-feasibility study has been released and a pilot-scale study is underway to prove the process at scale.
The project, 40 kilometres south of Meekatharra, has an initial 17-year mine life, defined over just 2.5 kilometres of an 11-kilometre held strike which contains further inferred resources.
Resource and reserve upgrade drilling is planned to extend the life of the project.
The Australian Vanadium Project is one of the highest-grade vanadium projects being advanced globally with resources of 183.6 million tonnes at 0.76% vanadium pentoxide, containing a high-grade zone of 96.7 million tonnes at 1% V2O5.
An ore reserve of 18.24 million tonnes at 1.04% V2O5 comprises a proved reserve of 9.82 million tonnes at 1.07% V2O5 and a probable reserve of 8.42 million tonnes at 1.01% V2O5.