Bushveld Minerals Limited Unprotected Industrial Action (1370A)

TIDMBMN

RNS Number : 1370A

Bushveld Minerals Limited

07 September 2018

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

7 September 2018

Bushveld Minerals Limited

("Bushveld" or the "Company")

Unprotected Industrial Action

Bushveld Minerals Limited (AIM: BMN), the AIM listed, integrated primary vanadium producer, with ownership of high grade vanadium assets, reports an unprotected industrial action at the Vametco Vanadium Mine ("Vametco") has temporarily stopped production with effect from the evening of the 5(th) of September 2018.

The industrial action is in relation to historic legacy issues and compensation structures prior to Bushveld's acquisition of Vametco.

In keeping with the Company's active employee and stakeholder engagement, the Senior Management team held a meeting with the Union Representatives, during which the Company agreed with the Union Representatives that they would urge for all labour to resume work with immediate effect, on the basis of a commitment between both parties to negotiate and agree an Employee Share Ownership Plan during the course of next week.

The Company continues to engage with the Union Representatives and is hopeful of a speedy resolution and resumption of operations.

The Company will update the market as appropriate.

Enquiries: [e-mail]

 
Bushveld Minerals                                                 [phone] 
Fortune Mojapelo, Chief Executive 
 Officer 
Chika Edeh, Head of Investor 
 Relations 
 
SP Angel Corporate Finance 
 LLP                                Nominated Adviser & Broker    [phone] 
Ewan Leggat 
Richard Morrison 
 
Alternative Resource Capital        Joint Broker 
Rob Collins                                                       [phone] 
Alex Wood                                                         [phone] 
 
Tavistock                           Financial PR 
Charles Vivian / Gareth Tredway                                   [phone] 
 
Lifa Communications                 Financial PR (South Africa) 
Gabriella von Ille                                                [phone] 
 

ABOUT BUSHVELD MINERALS LIMITED

Bushveld Minerals is a low cost, integrated, primary vanadium producer, with ownership of high grade vanadium assets.

The Company's flagship vanadium platform includes a 59.1 per cent controlling interest in Bushveld Vametco Alloys (Pty) Ltd, a primary vanadium mining and processing company; the Mokopane Vanadium Project and the Brits Vanadium Project.

Bushveld's vision is to become a significant, low cost, integrated primary vanadium producer through owning high grade assets. This incorporates development and promotion of the role of vanadium in the growing global energy storage market through Bushveld Energy, the Company's energy storage solutions provider. Whilst the demand for vanadium remains largely anchored in the steel industry, Bushveld Minerals believes there is strong potential for an imminent and significant global vanadium demand surge from the fast-growing energy storage market, particularly through the use and adoption of Vanadium Redox Flow Batteries.

While the Company's focus is on vanadium operations and the development and promotion of VRFBs, it has additional investments in coal, power and tin.

The coal platform comprises the wholly-owned Imaloto Coal Project, which is being developed as one of Madagascar's leading independent power producers. The Company's tin interests are held through its shareholding in AIM listed AfriTin Mining Limited.

The Company's approach to project development recognises that, whilst attractive project economics are imperative, they are insufficient to secure capital to bring them to account. A clear path to production within a visible timeframe, low capital expenditure requirements and scalability are important factors in ensuring a positive return on investment. This philosophy is core to the Company's strategy in developing projects.

Detailed information on the Company and progress to date can be accessed on the website www.bushveldminerals.com

About Vametco

Vametco is located near Brits on the Western Limb of the Bushveld Complex. The integrated operation comprises a vanadium ore mine and a processing plant that produces Nitrovan(TM) , a trademark product sold in major steel markets across the world. The mine lies adjacent to the Brits Vanadium Project, which will in future serve as an alternative source of near surface run of mine (ROM) ore feed to the Vametco plant.

The Vametco mining operation uses open pit bench mining methods to mine a well-defined orebody. The deposit is continuous with limited faulting and dips in a northerly direction at approximately 19 degrees.

ROM ore is fed into a primary, secondary and tertiary crushing circuit, followed by milling and magnetic separation to produce magnetite concentrates. The magnetite concentrates are fed into the extraction process which includes the kiln for roasting followed by leaching and precipitation. Thereafter the precipitated vanadium as ammonium metavanadate is converted to modified vanadium oxide (MVO) in rotary calciners. MVO is fed into the mixplant and finally into the shaft furnaces to produce Nitrovan(TM) .

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September 07, 2018 05:45 ET (09:45 GMT)