Business
Carbon Black Substitute MOU
Ferro-Alloy Resources Limited has entered into a non-binding memorandum of understanding with Qingdao Master Tyre Co., Ltd for the supply of up to 360,000 tonnes per year of a new carbon black substitute ("New CBS") derived from high-carbon waste rock. This New CBS product, which was not part of the company's recent feasibility study, is considered a priority project for Master Tyre's 2036 strategy and is expected to generate additional net cash flows beyond the Balasausqandiq project's existing financial projections. The MOU includes close technical cooperation and aims to establish a binding sale and purchase contract within three years. Disclaimer*
About this update from Ferro-alloy Resources Ltd.
19 January 2026 Ferro-Alloy Resources Limited ("Ferro-Alloy", the "Group" or the "Company") Carbon Black Substitute Memorandum of Understanding Ferro-Alloy Resources Limited (LSE:FAR), the vanadium producer and developer of the large Balasausqandiq vanadium deposit in Southern Kazakhstan, is pleased to announce that it has entered into a non-binding, non-exclusive, memorandum of understanding ("MOU") for the supply of up to 360,000 tonnes of carbon black substitute ("CBS") per year, to Qingdao Master Tyre Co., Ltd ("Master Tyre"). The MOU will be for the supply of the new CBS product ("New CBS") which will be produced from high-carbon / low vanadium waste rock (as announced on 27 June 2025). Testing and development of the New CBS product is considered to be a priority project for Master Tyre over the next three years, as part of its 2036 strategy. Commenting, Nick Bridgen, CEO of Ferro-Alloy Resources, said: "Master Tyre's innovative approach to tyre manufacturing and R&D capability will maximise the environmental and cost benefits of using our latest CBS product and will develop significant technical knowledge in optimising its use in rubber manufacturing. This New CBS product was not included in our recently announced feasibility study, which only envisaged our original CBS product made from the tailings of the vanadium production process. The net cash flows from this New CBS product are additional to the already strong financial characteristics of the Balasausqandiq project." MOU summary - The Company has entered into a non-binding, non-exclusive, MOU for the supply of New CBS to Master Tyre. - Master Tyre plans to use the New CBS for its own production and for sale to other tyre and rubber manufacturers in the People's Republic of China ("China"). - Key terms of the MOU as follows: · Supply of up to 360,000 tonnes of New CBS per year · Pricing to be agreed in future commercial negotiations · Close technical cooperation between the Company and Master Tyre in the optimisation of product specification for the substitution of New CBS into rubber production · Development of the relevant agreements and legal documents necessary to achieve a binding sale and pu...
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