Technology Metals teams up with Indian giant Tata Steel to explore ‘green steel’ opportunities

Technology Metals Australia (ASX:TMT) is teaming up with Indian heavyweight Tata Steel with an MOU to explore the inclusion of TMT’s vanadium pentoxide products into Tata’s steel manufacturing arms. 

The MOU sees the two parties discuss Tata’s potential investment into TMT’s Murchison technology metals project based in WA. Tata Steel is the 10th largest steel producer in the world, according to TMT. 

A study for the Murchison project released back in August gave TMT’s play the following credentials: 

• Average annual earnings of $182m 

• 25-year life of mine revenue of $8bn

• Ilmenite production rate of 96,500tpa in first stage

• Project valued at $942m 

• Internal rate of return of 23%

While it develops its vanadium mine, Technology Metals will commence the mining and selling of ilmenite to Asian customers for use in industrial dyes. The company believes the product will reel in US$310/tn. 

As currently planned, once the vanadium operations go live, the material will be trucked to Fremantle Port for export, while ilmenite in the earlier stages will be trucked north to Geraldton under the direction of KOP Ventures, the company’s project subsidiary. 

Interestingly, today’s MOU also sees TMT and Tata team up to explore the construction of vanadium manufacturing facilities in India, as well as Western Australia. 

Both partners excited 

“TMT is excited to be partnering with Tata, as well as furthering Australia’s trade relationship with India,” TMT MD Ian Prentice said. 

“High purity vanadium pentoxide is important in producing lower emissions ferrovanadium and vanadium nitride, which Tata uses in its steelmaking….together, TMT and Tata can play an important role.” 

Tata’s Group VP for procurement echoed Prentice’s sentiments. 

“Vanadium is a key component in Tata’s process to reduce carbon emissions,” Rajiv Mukerji said. 

“Working with TMT on opportunities surrounding vanadium aligns with Tata’s strategy to ensure reliable, stable supplies of raw materials to meet our customers’ future requirements.” 

R&D research 

Tata Steel has another reason to take note. Later that same month, the company teamed up with a collaborative research group based in Canberra to explore the R&D implications of TMT’s planned use of vanadium in steel. 

In short, vanadium can increase the tensile strength of steel while also leaving operators responsible for less emissions by way of its inclusion compared to traditional alloys. 

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Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Technology Metals was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.