Atlantic Ltd (ATI) is pleased to announce the execution of a major sales and marketing agreement between its wholly-owned subsidiary Midwest Vanadium Pty Ltd, Wengfu (Group) Co Ltd and Element Commodities Ltd for the sale of 100% of the ferrovanadium production from the Windimurra vanadium project in Western Australia.
Wengfu is a major Chinese state-owned mining and chemical manufacturing group and a leading international player in the phosphate and fertiliser sector. Element is a specialist Hong Kong-based global supply chain and commodities trading firm. Financially backed by Wengfu, Element manages the global flow of raw materials with significant expertise in marketing vanadium. Under the Agreement, Wengfu will purchase 100% of MVPL’s annual ferrovanadium production at prevailing market prices, subject to an agreed minimum and maximum sales price (a collar mechanism) for up to a maximum of 65% of MVPL’s annual vanadium production. Element will market the ferrovanadium production from Windimurra purchased by Wengfu from MVPL to end customers at an attractive commission.
Atlantic Managing Director Michael Minosora said Atlantic was delighted to be working with the Wengfu and Element commodities trading group. “This agreement represents an exceptional price protection and marketing solution for Windimurra,” Mr Minosora said. “The collar price mechanism exemplifies the innovative approach we are taking to maximise the value of Windimurra.” “This sales and marketing agreement secures a strong customer for all of Windimurra’s ferrovanadium production and underwrites the long-term viability of the project, thereby enhancing its financial attractiveness.” “We look forward to developing a strong, long-term relationship with both Wengfu and Element.”
Atlantic is committed to building a diversified portfolio of world class resources assets that will provide superior returns to shareholders. Atlantic combines its strong financing capability with a highly disciplined and innovative approach to acquire resources projects that are low cost, long life and near production.
The Wengfu Group is a Chinese state-owned enterprise and a leading player in the phosphate rock and fertiliser business. Located in Guizhou Province, Wengfu is one of China’s largest exporters of ammonium phosphate fertilisers and phosphate chemicals and a significant importer of sulphur and sulphuric acid. Through its Singapore subsidiary, Graceland Industry Pte Ltd, Wengfu is expanding its involvement in the resources and energy sector based on growing demand for raw materials from steel and power enterprises in China.
Element Commodities Ltd is a global supply chain manager of natural resources. Headquartered in Hong Kong, Element operates regional offices on five continents to manage the global flow of raw materials for steel and other commodities. Financially backed by Wengfu, Element manages the global flow of raw materials on behalf of clients and is a leading player in the global ferro-alloys market with significant expertise in marketing vanadium.
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Tags: ATI, Atlantic, mining, New contract, Vanadium
