| The TEX Report Topics < Ferro Alloys > | |
| HOME >> Topics List >> June, 2006 >> 26 (Mon) |
| New Development By Russia Of Composition For Supplies Of Vanadium Resources |
| = Russian Rich Man Has Acquired Evraz, Which Has Taken Over Vanadium Plant In USA |
|
While the Evraz Group has possessed large steel mills and coal mines in Russia as their affiliated companies, Mr. Abramovich, who is a man of wealth in Russia and has been closely related to Russian President, has acquired approximately 41% of the shares of the Evraz Group, corresponding to half of 82.67% of the shares held by owner of the Evraz Group, and this acquisition has stimulated the parties concerned in the world. The Evraz Group has acquired in April of 2006 a 73% of the shares of Stratcor, a leading producer of vanadium in the USA, for US$110 million and, therefore, it has been suddenly marked the composition to supply vanadium by Russia. The Evraz Group has acquired a 73% of the shares of Stratcor, effective from May of 2006. Sojitz Corporation has still possessed a remaining 22.3% of the shares of Stratcor but the Evraz Group has grasped the leadership to manage Stratcor. The Evraz Group has been concerned from a previous time in sale of vanadium slag as by-product to be supplied by Nizhny Tagil Steel, having shared a large portion of vanadium resources generated in Russia, and has been selling this vanadium slag to the markets in Russia and China. The Evraz Group has so far specialized in selling vanadium slag without possession of the facilities to process vanadium ( to extract vanadium and to produce ferro-vanadium ) but has taken over this time Stratcor of the USA and, accordingly, will launch to produce vanadium. Stratcor has been operating the plants for vanadium ( to extract vanadium ) in the USA and South Africa. It is said that Stratcor has the capacity to produce 25 million lbs. per annum of vanadium pentoxide ( for production of ferro-vanadium with V 50% called Nitrovan as commodity name ). According to an estimation by a major producer of vanadium in South Africa, Russia produced 40 million lbs. of vanadium pentoxide in 2005, having shared 23% of the world consumption which is estimated to be 172.9 million lbs. for 2005. For a reference, according to the trade statistics released in Russia, this country exported 7,967 tons in material of ferro-vanadium in 2005, which decreased by 8% compared with that ( 8,670 tons ) in 2004. Tulachermet is a major exporter of Russian ferro-vanadium. The locations of vanadium resources have been unevenly distributed to South Africa, Russia and China. Apart from Rhovan in South Africa ( primary production ), other companies have been producing vanadium on the basis of vanadium slag as by-product from production of pig iron. The primary production of vanadium causes expensive cost and requires a huge amount of investment Therefore, new production of vanadium by primary process is kept at a distance. In order to produce newly vanadium, the process to extract vanadium from spent catalyst seems to be only hopeful and, in this meaning, the sources to supply vanadium are supposed to have been fairly restrained. In view of the fact that the strengthened exchange rate of South African Rand against US-Dollar continued for 2 - 3 years, an anxiety for this problem has been left for the future and, accordingly, there is less expectation of new investment in vanadium project. On the contrary, as regards Highveld Steel & Vanadium of South Africa as a major producer of vanadium in the world, AAC ( Anglo American Corp. ), parent company of Highveld, announced on the end of 2005 their intention to sell this vanadium producer. Also, it is not informed that, in principle, Russia does not have any plan to expand the capacity for vanadium production, because the process to produce vanadium has been deeply connected with production of pig iron. Nevertheless, it is assumed that Russia will strengthen to control vanadium resources through the Evraz Group acquired by Mr. Abramovich, closely related to Russia President, and it is marked to which direction does Russia develop hereafter their strategy for vanadium. Russia has already shared a 41% of the world market in production and sales of low carbon ferro-chrome. |
| last modified : Thu 29 Jun, 2006 [17:17] |
