Toronto-based vanadium producer Largo Inc, formerly known as Largo Resources, updated the estimated lifecycle of its Brazilian Maracás Menchen vanadium mine in Bahia state to 20 years, according to a company document filing.
Vanadium is used as an additive for steel, in order to produce rust resistant as well as high-speed tool steels. The company said an updated technical report suggests there should be “enhanced profitability and market competitiveness” at its Brazilian vanadium project. Additionally, the company said it expects vanadium output capacity to increase from 13,200/mt to 15,900 mt/year by 2032.
“The phased operational scenarios outlined in our technical report are expected to further support the optimization of the Maracás Menchen mine and unlock an opportunity to deliver significantly enhanced cash cow and drive increased market competitiveness of the company’s products,” said the company’s CEO, Paulo Minsk.
“We believe these results demonstrate a clear and profitable path forward for Largo, one that is aligned with our strategy and is expected to create significant value for our shareholders,” he said.