Vision Blue invests in Sinova Global to meet rising silica demand

With an aim to pursue more sources of minerals used to create batteries and clean energy equipment, Vision Blue Resources (VBR) is investing US$125 million for an undisclosed but ‘significant’ minority stake in Sinova Global, which is developing the Horse Creek quartz mine near the town of Golden in southeastern British Columbia, and a silicon metal processing plant in Tennessee. 

Acquired by Sinova in 2013, the Horse Creek mine has an annual production capacity of more than one million tonnes of pure quartz, which is used to produce silica and is required to make solar cells, semi-conductor chips and next generation batteries. The company is currently working on updating permits, testing and defining resource as it develops a business plan for Horse Creek.   

Founded by former Xstrata boss Sir Mick Davis in December 2020 to accelerate opportunities in battery and technology minerals, this is VBR’s third investment after investing in Next Source Materials’ (TSX: NEXT), which is advancing its graphite mine project in Madagascar; and Ferro-Alloy Resources (LSE: FAR), a vanadium mining company.  

 “We need a transformation of the complete energy ecosystem encompassing: increased generation from renewables in combination with grid scale battery storage solutions (to move away from coal), distribution infrastructure for this new energy, and electric vehicles (to move away from oil),” Davis told The Northern Miner by e-mail.  

“VBR is investing to make this change happen given that the necessary transition materials will be in critically short supply in the medium and long term, when demand expands and production capacity will be constrained.”  

With countries promising to become carbon-neutral by 2050, VBR believes investments focusing on minerals needed for the transition towards clean energy are going to be “critical” going forward and have already identified a number of other projects to fund.  

The silicon metal market is expected to increase from about 2.7 million tonnes per year in 2020 to over 5.3 million tonnes annually by 2026 and the current production levels won’t meet this demand, according to VBR. In addition, more than half of North America’s silicon metal demands in the last five years have been met through imports due to a dearth in new silicon metal plants.  

Davis, who led Xstrata from a $500 million business to one of the world’s largest mining companies before it was acquired by Glencore (LSE: GLEN) in 2013, will become Sinova’s chairman.  

The long-time mining executive believes the company has the potential to become a major new, supplier of quartz and silicon metal products in North America, and noted that the supply for very high-grade feedstock, such as that produced by Sinova, is “severely constrained” and there is insufficient silicon smelter capacity to refine it.  

Sinova’s CEO, Jayson Tymko, said it was the two companies’ shared interests in green energy that brought them together, and that VBR’s investment will ensure the company has enough funds necessary to meet its objectives.  

“Sinova’s unique resource is the first step in enabling all these technologies, such as solar, energy storage, computer chips and the light weight metals market,” Tymko told The Northern Miner.  “VBR saw a company that had a unique world class deposit, team and opportunity.”  

The company’s silicon metal manufacturing facility near Tiptonville, Tennessee is expected to go into production in 2024 and has received support from the Tennessee governor.  

“All of Tennessee succeeds when rural Tennessee succeeds, and this project will be transformational for Lake County,” Tennessee Governor Bill Lee said in a Dec. 7 press release. “I thank Sinova Global for choosing to invest in Tennessee and establish its first manufacturing operations here.”