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Australia-listed Vanadium Resources (VR8) has announced two new developments towards the company's VR8 Steelpoortdrift vanadium project in South Africa becoming a long-term vanadium supplier.

Firstly, VR8 has entered into a nonbinding offtake term sheet with US Vanadium Holding Company (USV), a majority-owned portfolio company of TechMet.

This agreement covers 100% of the vanadium-bearing slag production from VR8's proposed critical minerals smelter, the V-Iron Plant. US Vanadium is a producer of high-purity vanadium specialty chemicals, and recent metallurgical testing has confirmed that the slag from VR8's Bushveld Complex ore is ideally suited for its production facility.

This partnership positions VR8 to strengthen supply chains for critical minerals.

Additionally, VR8 has appointed Rand Merchant Bank (RMB) as its exclusive financial advisor and capital sourcing agent.

RMB will help secure funding for the construction of the project's processing facilities, including both concentrator and pyrometallurgical beneficiation units.

With RMB's expertise, VR8 is well-placed to advance the development of its deposit and establish itself as a cornerstone asset, VR8 executive chairperson Jurie Wessels stated in a media release to Mining Weekly.

Vanadium is used extensively in defence and aerospace applications. The Steelpoortdrift project contains 4.74-million tons of V2O5 and the V-Iron Plant will be designed to optimally process Steelpoortdrift's high-grade VTM ore and co-produce vanadium-rich slag and pig-iron, drawing on established metallurgical practices used at Highveld Steel and Vanadium (South Africa), Chengde and Panzhihua (China) and Kachkanar (Russia).

The production pathway, which will be investigated through an upcoming feasibility study, mitigates against vanadium price volatility and captures maximum value from the suite of minerals within Steelpoortdrift's ore.

VR8 is in active discussions to acquire brownfield sites that host, or have previously hosted, large-scale pyrometallurgical operations with existing utility infrastructure and environmental footprints to potentially materially reduce project readiness timelines and capital requirements of the envisaged V-Iron Plant.

"The shifting pricing landscape for vanadium reinforces the need to move away from single-product models and to avoid feeding into markets that destabilise supply and pricing. By adopting a processing route already proven in South Africa, the full suite of metals contained in our orebody can be extracted. This approach stands to strengthen VR8's economics, diversify our revenue base," Wessels explained.

The availability of nearby brownfield pyrometallurgical infrastructure, combined with emerging renewable-power capacity, makes the development of a V-Iron Plant both practical and compelling. Through the production of vanadium rich slag, which is historically the preferred feedstock for US vanadium operations, and the supply of pig iron to new steel producers in South Africa, which are replacing legacy producers, VR8 sees the foundations of an integrated mine-to-metal value chain.

VR8 CEO Nick Diack described the USV term sheet as representing a significant step forward in the commercialisation of Steelpoortdrift as a leading vanadium deposit and reflecting the depth of technical and strategic work completed by the company to date.

"The co-production approach to ore processing has proven both historically and currently to be the most successful and sustainable manner in which to produce significant quantities of vanadium.

"We strongly believe that this approach, coupled with partnering the leading US vanadium processing and distribution company has the potential to cement VR8 as the west's leading miner and suppli...

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Fossil fuels staged a comeback in China's power sector last quarter, as weather variations and grid constraints slowed the growth of clean energy.

Thermal power output rose 3.7% over the first three months of 2026 after a 1% decline last year, the first yearly drop in a decade. Electricity generation is by far the country's largest source of greenhouse gases, and the rebound undermines the progress made in reining in emissions ahead of the government's own targets.

The math behind China's fossil fuel use is fairly simple. If generation from clean sources grows enough to meet increases in demand, then the country can burn less gas and coal.

However, that did not happen in the first quarter, in part because of the weather. In March, the average wind speed across the country dropped 13%, according to a report from Huafeng Innovation Research Institute. Even though China added a record number of new turbines last year, wind generation over the period fell 2.9%, according to industrial output data. Nuclear also fell 3.8%.

"Limited wind resources in many key regions, and the shutdown of many nuclear plants for maintenance, most likely contributed to the increase in thermal power," said Trivium China energy analyst Cosimo Ries.

Power demand grew by 5.2% during the quarter, driven by heavy industry and the rapid expansion of electric vehicle charging stations and data centers, according to clean energy think tank Ember analyst Matt Ewen.

CURTAILMENTS WORSEN

The conditions for clean energy generation also worsened because of rising curtailments. The years-long boom in installations has left parts of the grid unable to deal with a surplus of power when the sun shines and the wind blows. China wasted 9.4% of its solar power and 8.6% of its wind power in January and February, up from 6.1% and 6.2% in the same period in 2025.

Much of the increase in thermal generation during the first quarter would have been unnecessary if that curtailed electricity had been available.

China's grid operators are racing to develop the capacity to absorb more renewables, rapidly building out the energy storage systems and power lines that will allow them to balance supply with demand at any time and in any location.

However, China's market rules have been designed for a grid dominated by coal-fired power. Regulatory challenges are slowing down the optimal use of the new infrastructure, said Ember analyst Muyi Yang.

"The exponential wind and solar growth of the past few years has started to normalize somewhat this year. Growth is now increasingly shaped by integration constraints."

Mining Weekly Editor Martin Creamer unpacks green hydrogen’s revival in the global energy crisis; Sibanye-Stillwater’s far-reaching suite of reports on its 2025 activities; and government’s silence on its exploration systems.

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A new, long-term electricity solution for South Africa's Hillside Aluminium Smelter, in KwaZulu-Natal, has been advanced, which marks a crucial step toward supporting the future of one of Southern Africa's most important industrial businesses.

Hillside, which supports 3 650 direct and indirect jobs and contributes to an estimated 29 000 jobs across the economy, plays a key role in supplying aluminium to South Africa's domestic downstream industry.

The solution is targeted to commence in 2031, subject to compliance with all regulatory requirements, South32 and Eskom stated in a joint announcement on Tuesday, April 28.

The Sydney- and Johannesburg-listed South32 and State-owned power utility Eskom have reaffirmed their shared ambition to develop and deliver an enduring energy solution that supports Hillside's competitiveness, contributes to regional economic stability and industrial growth, and aligns with South Africa's broader decarbonisation objectives.

To support this ambition, South32 and Eskom have established a joint working group to explore mechanisms that can bring competitively priced renewable energy into the national grid, backed up by affordable firming capacity, within the existing regulatory framework.

While this work will help support the long-term energy needs of Hillside, the solutions being assessed have the potential to also benefit Eskom and its broader customer base.

"As Hillside celebrates 30 years of operation this year, we are collaborating with the government of South Africa and Eskom to secure its future for decades to come," South32 COO Noel Pillay stated in a media release to Mining Weekly.

"We have made a solid start. It is important we continue this momentum, working toward a viable, low-carbon energy solution for Hillside from 2031, when the current electricity contract expires," Pillay added.

The value that Eskom places on its longstanding partnership with South32 and the important role that Hillside Aluminium plays in South Africa's industrial economy was highlighted by Eskom Group CE Dan Marokane: "Through this joint process, we are working to develop a long-term energy solution that supports industrial competitiveness while advancing South Africa's transition to a lower-carbon electricity system.

"By exploring innovative mechanisms to integrate renewable energy into the grid with appropriate firming solutions, this collaboration has the potential not only to secure the future of Hillside, but also to contribute to strengthening the resilience and sustainability of the national electricity system for the benefit of all South Africans," he pointed out.

South32 stated that its purpose is to make a difference by developing natural resources, improving people's lives now and for generations to come.

"We are trusted by our owners and partners to realise the potential of their resources. We produce minerals and metals critical to the world's energy transition from operations across the Americas, Australia and Southern Africa."

South32, headed by CEO Graham Kerr, emphasised its aspiration to build meaningful relationships with its partners and communities. Kerr is leading a transition to incoming CEO Matthew Daley, who joined the company in early 2026 to take over leadership.

Wholly owned by the South African government, Eskom is committed to a responsible transition to a lower-carbon future.

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Nasdaq-listed Critical Metals Corporation has signed a letter of intent to acquire all the outstanding shares of ASX-listed European Lithium in a deal valued at $835-million.

The deal will afford Critical Metals 100% ownership of the Tanbreez rare earths project, in Greenland, up from its current 92.5% stake, should Critical Metals proceed in taking over European Lithium's 7.5% stake in the project.

Critical Metals currently holds a market capitalisation of $1.45-billion and has seen its stock prices rise by 638% over the past year.

Under the proposed transaction, European Lithium shareholders will receive 0.035 shares of Critical Metals for each European Lithium share held.

European Lithium currently owns 45-million shares of Critical Metals, representing a 34% shareholding. These cross-holding shares had a market value of $540-million as of April 22. Critical Metals intends to cancel these shares upon completion of the transaction.

The transaction will be implemented through two interdependent Schemes of Arrangement covering European Lithium's shares and listed options. European Lithium's outstanding listed options and zero-dollar exercise price unlisted options will be converted to Critical Metals shares based on specified formulas.

Completion is conditional on several items, including negotiation of a binding Scheme Implementation Deed, approval by European Lithium shareholders, and European Lithium maintaining net cash and liquid assets of at least A$330-million.

The transaction is expected to close in the second half of 2026, with a shareholder meeting anticipated in the third quarter of 2026.