Denison (DNN) Eyes Chinese Vanadium Demand

Denison Mines (AMEX:DNN) CEO Ron Hochstein says vanadium is a key component of the company's U.S. strategy as China makes a shift to more manufacturing of high strength, low-alloy quality type steels.

In a presentation to the BMO Capital Markets 20th Annual Global Metals & Mining Conference in Florida, Hochstein noted that Chinese government is encouraging China steel manufacturers to utilize more vanadium in order to lower the number of steel mills in the country, as well as helping to reduce pollution generated by steel manufacturers.

Hochstein estimated that 61,000 tons of vanadium are required to satisfy the current global market. The U.S. Geological Survey estimates that 56,000 metric tons of vanadium were mined in 2010. World resources of vanadium are estimated at 63 million tons.

Metallurgical use of vanadium, primarily as an alloying agent for iron and steel account for about 97% of U.S. vanadium consumption in 2009, said the USGS. There is currently no acceptable substitute for vanadium in aerospace titanium alloys.




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