Vanadium Resources And China Energy International Group Sign MOU To Explore EPCF Opportunities

Vanadium Resources Limited has signed a Memorandum of Understanding (MOU) with China Energy International Group Co. Limited (CEIG) to exclusively negotiate the supply of Engineering, Procurement & Construction (EPC) services and financial assistance for the development of the Steelpoortdrift Vanadium Project in South Africa. The MOU sets the foundation for collaboration between the two companies as they explore opportunities in renewable energy and infrastructure development.

The MOU includes the provision of services for the construction of the Steelpoortdrift Project, which will include a solar plant and other associated energy infrastructure. This agreement also enables VR8 to potentially transition into a vertically integrated vanadium producer, leveraging CEIG’s global expertise in renewable energy.

CEIG, a subsidiary of China Energy Engineering Corporation (CEEC), is recognized as a leading global player in renewable energy and infrastructure solutions, with a strong presence in South Africa, where it is developing the Mooi Plaats 283MWdc PV power plant, the largest of its kind in the country.

Mr. John Ciganek, CEO of Vanadium Resources, commented, “We are thrilled to partner with a global leader like CEIG, whose expertise aligns perfectly with our Steelpoortdrift Project. This MOU lays the groundwork for long-term collaboration that will enhance our ability to enter the renewable energy market.”

The MOU could lead to significant strategic opportunities, including a potential decoupling from the steel industry, with up to 100% of Steelpoortdrift’s output being allocated to renewable energy initiatives. Both companies anticipate additional value-add opportunities within the energy sector.

Mr. Jurie Wessels, Executive Chairman of VR8, emphasized the importance of the agreement: “This collaboration presents a unique opportunity to combine CEIG’s service excellence with our vanadium resources, potentially opening doors to higher-growth markets. We look forward to negotiating a potential transaction, with a focus on EPC services and financial assistance.”

The MOU, which is partly binding, will be in effect for six months, allowing both parties to explore opportunities for debt financing and strategic equity partnerships. CEIG will assist VR8 in securing financing for the project, including the construction and commissioning of the solar plant.

Vanadium Resources’ Steelpoortdrift Project, which includes a mine, concentrator, and Salt Roast Leach (SRL) plants, is progressing towards its Final Investment Decision (FID) in Q3 2025, positioning it as one of the world’s largest vanadium projects.

This announcement highlights a pivotal step towards transforming Vanadium Resources into a key player in the renewable energy and vanadium production sectors, with the backing of a world-class partner like CEIG.