Downer has signed an agreement to provide mine engineering and technical services to Multicom Resources as the Queensland-based company looks to move forward its Saint Elmo vanadium project in the Australian state.
Downer’s mine planning, scheduling and fleet management divisions will provide key services to Multicom, with the agreement outlining the intention of progressing to a mining services agreement at Saint Elmo as well as the provision of design and engineering services. The company has also asked Downer to progress a concept study for the development of vanadium flow batteries.
“These services will support Multicom’s focus on the exploration and development of high-quality vanadium assets to satisfy the growing demand for V205 in steel manufacturing and the emerging energy storage market,” Downer said.
Once the Saint Elmo project is fully developed, Multicom has an initial target production of 10,000 t/y of V205, with the possibility of scaling up to 20,000 t/y or greater, subject to market conditions.
The company currently has a measured, indicated and inferred resource base of 493.5 Mt grading 0.28% V2O5. It is targeting first production in early 2021.
Since acquiring the tenement in early 2017, Multicom has lodged the mining lease application and is well-advanced on environmental and prefeasibility studies, Downer said.