Vanadium Resources Limited has entered into a Memorandum of Understanding (MOU) with China Energy International Group Co. Limited (CEIG) to exclusively negotiate the provision of Engineering, Procurement & Construction (EPC) services and financial support for the development of the Steelpoortdrift Vanadium Project in South Africa. This agreement marks the beginning of a collaborative effort between the two firms as they seek opportunities in renewable energy and infrastructure development.
Under the MOU, CEIG will provide services for constructing the Steelpoortdrift Project, which includes a solar power plant and related energy infrastructure. This partnership could position Vanadium Resources to evolve into a vertically integrated vanadium producer, utilizing CEIG’s extensive experience in renewable energy.
CEIG, a subsidiary of China Energy Engineering Corporation (CEEC), is a prominent player in renewable energy and infrastructure solutions, with a significant footprint in South Africa. The company is currently working on the Mooi Plaats 283MWdc PV power plant, the largest of its kind in the country.
Mr. John Ciganek, CEO of Vanadium Resources, expressed enthusiasm about the partnership, stating, “We are excited to collaborate with a global leader like CEIG, whose expertise aligns seamlessly with our Steelpoortdrift Project. This MOU establishes a foundation for long-term cooperation that will enhance our entry into the renewable energy market.”
The MOU opens the door to strategic opportunities, including the possibility of moving away from reliance on the steel industry, with up to 100% of Steelpoortdrift’s output potentially directed toward renewable energy initiatives. Both companies foresee additional value-adding prospects in the energy sector.
Mr. Jurie Wessels, Executive Chairman of Vanadium Resources, highlighted the significance of the agreement: “This collaboration offers a unique chance to merge CEIG’s service excellence with our vanadium resources, potentially unlocking access to high-growth markets. We look forward to negotiating a transaction focused on EPC services and financial support.”
The partially binding MOU will remain effective for six months, allowing both parties to explore debt financing and strategic equity partnerships. CEIG is set to assist Vanadium Resources in securing funding for the project, which includes the construction and commissioning of the solar plant.
The Steelpoortdrift Project, which encompasses a mine, concentrator, and Salt Roast Leach (SRL) plants, is on track for its Final Investment Decision (FID) in Q3 2025, positioning it among the largest vanadium projects globally.
This announcement marks a significant step for Vanadium Resources as it aims to become a key player in both the renewable energy and vanadium production sectors, supported by a world-class partner like CEIG.
