The Conversation (0)
June 10, 2024
Element 25 Limited (E25 or Company) (ASX: E25; OTCQX: ELMTF) is pleased to provide an update on activities to investigate the potential to recommence operations at the Company’s 100%-owned Butcherbird Manganese Project in Western Australia (Butcherbird) to take advantage of recent upward movement in manganese ore prices caused by market factors including disruptions at South 32 Limited’s Groote Eylandt (GEMCO) operations1. This may include the sale of stockpiles and or recommencing processing of run-of mine (ROM) stockpiles.
HIGHLIGHTS
- Manganese ore prices rise to four-year highs to U$8.30/dmtu for 44% cif Tianjin, China1.
- E25 operations team and Board investigating opportunities to process ROM and low-grade stockpiles at Butcherbird.
- If operationally feasible, ore production at current prices presents an opportunity to generate short-term cash flow.
GEMCO’s Groote Eylandt Mine typically produces more than 6M tonnes of high-grade manganese ore a year, and damage to the mine’s haul road and ship loading facilities from Tropical Cyclone Megan in March 2024 has resulted in a forecast supply disruption of up to twelve months. GEMCO is currently targeting a production restart in Q3 2025.2
Figure 1: Manganese ore index – Yuan/dmtu Tianjin Port1. Butcherbird Expansion Feasibility Study parameters also shown3.
The loss of GEMCO supply coupled with political instability in South Africa has resulted in a significant and rapid increase in manganese ore prices due to increased competition for available supply. This presents an opportunity to potentially sell stockpiles that are of a lower grade, preventing their previous sale at lower prices but which may be profitable to ship now.
Additionally, ROM stockpiles that have been mined but not yet processed are available at site. The cost structure of a restart is not currently defined, however E25’s Board recognises the potential opportunity of selling existing product stockpiles and/or recommencing the processing of ROM stockpiles at Butcherbird to produce material for sale at current elevated prices. If viable, these activities will occur in parallel with and will not impact the expansion plans for the Butcherbird Project. E25 suspended Butcherbird production in early 2024 during a period of depressed ore prices while readying for an upgrade of facilities to achieve a nominal 1.1Mpta manganese concentrate production, as outlined in a Feasibility Study completed on January 20243.
The expansion of Butcherbird production aligns with E25’s strategy to produce high-purity manganese sulphate monohydrate (HPMSM) at a facility planned to be built in Louisiana, USA, in partnership with global automakers General Motors LLC and Stellantis NV4.
Element 25 Managing Director Justin Brown said:
“A potential restart of Butcherbird’s processing operations at these increased manganese ore prices on a de-risked basis may be an ideal opportunity to monetise existing stockpiles and generate short-term cashflow. E25 looks forward to updating the market further as these investigations are completed and we will continue to monitor ore markets in the meantime to optimise any potential opportunities that may arise.”
Click here for the full ASX Release
This article includes content from Element 25 Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
E25:AU
21 April 2024
Goldfields Exploration Update
Miramar Resources Limited (ASX:M2R, “Miramar” or “the Company”) is pleased to provide an update on gold exploration activities within the Company’s strategic Eastern Goldfields project portfolio.
- RC drill hole completed under high-grade Blackfriars gold prospect (Gidji JV)
- New Exploration Licence application expands land position along Randall Fault
The Company has completed a single RC drill hole at the high-priority Blackfriars Prospect, within the Gidji JV Project (“Gidji”) (Figure 1).
The Blackfriars Target is located at the contact between the Black Flag Group and mafic and ultramafic rocks within the Boorara Shear Zone and shares the same geological setting as the >2 million ounce Paddington gold deposit along strike to the north.
Given the apparent similarities to Paddington, Blackfriars is a high priority target within the Gidji JV Project.
The Blackfriars aircore gold footprint stretches for at least 1 kilometre at greater than 1g/t Au and remains open along strike to the northwest on the other side of the Goldfields Highway.
The recent RC hole, GJRC028, tested beneath the high-grade result in aircore hole GJAC627, which ended in black shale with quartz-carbonate veining and sulphides and returned a result of 1m @ 11.8g/t Au and 6g/t Ag (46-47m EOH) (see ASX Release dated 8 April 2022).
GJRC028 intersected black shale and silicified dolerite with sulphide mineralisation and quartz stringers but was terminated at 130m due to difficult drilling conditions associated with running sands in the overlying Gidji Paleochannel.
Miramar’s Executive Chairman, Mr Allan Kelly, said the Gidji JV Project had the potential to host a new gold camp with multiple deposits but was significantly underexplored.
“Gidji is in a fantastic location within a major mineralised structure, between two major gold camps, Kalgoorlie and Paddington,” Mr Kelly said.
“Despite this, and the record gold price, the Project has had minimal effective historic exploration, and virtually no deep drilling, as evidenced by our ability to discover high-grade bedrock gold mineralisation with shallow aircore drilling only 150 metres from a major highway,” he said.
Samples from the RC hole have been sent for analysis and further aircore and RC drilling is planned.
The Company is also working towards obtaining approvals for drilling of other high-priority targets at Gidji including:
- Marylebone – multiple high grade gold results including GJAC562 (6m @ 2.2g/t Au and up to 28g/t Ag) associated with massive sulphide mineralisation in black shale
- Roaster – 2m @ 3.3g/t Au in GJAC577 – open along strike
- Eight-mile – potential northern extension of Northern Star Resources Limited’s 300,000-ounce “Runway/8 Mile Dam” deposit
- The Jog – gravity anomaly and magnetic depletion within jog in the Boorara Shear Zone
New Application
The Company has also further expanded its strategic Eastern Goldfields tenement portfolio with a new Exploration Licence Application south of the recently acquired Lake Yindarlgooda Project (Figure 2).
The “Venetian” Target, E25/649, covers a package of mafic rocks immediately adjacent to the Randall Fault and contains historic RAB drill holes with anomalous gold results within and along strike of E25/649.
Miramar will compile all historical data and work towards grant of the tenement.
Click here for the full ASX Release
This article includes content from Miramar Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Keep reading...Show less
18 March
Top 9 Manganese-producing Countries
Market volatility has become the norm for the top manganese-producing countries in recent years.
In April 2024, manganese prices leaped upward in the second quarter due to Tropical Cyclone Megan significantly damaging the Groote Eylandt Mining Company (GEMCO) manganese mine in Australia. However, a surge in alternative supplies and the weak state of Chinese demand caused prices to pull back to their original level by September.
Manganese prices have remained flat in the first quarter or 2025. Looking forward, analysts are pinning further support for manganese prices on China's ability to right its economic ship. While the majority of manganese supply goes to the steel industry, there's also much to be said for the metal's use in lithium-ion batteries as the green energy transition progresses. Benchmark Mineral Intelligence projects that demand for manganese will increase by eight-fold between 2020 and 2030 on rising demand for electric vehicle batteries.
What are the uses of manganese?
The steel industry is the primary end user of manganese metal, consuming it as an alloy to enhance the strength and workability of the key construction material. Manganese is also mixed with aluminum to manufacture tin cans.
Aside from that crucial application, manganese dioxide and manganese oxide are often used as cathode materials in the production of zinc-carbon and alkaline batteries. Additionally, after crude oil is refined, manganese may be used as an additive to help coat and protect a car’s engine.
And, as mentioned, one of the most promising uses of manganese is in the lithium-ion battery sector. The silvery metal is used in lithium-nickel-manganese-cobalt (NMC) batteries, which have improved energy loading and lifespan. Batteries using this mineral composition are in high demand in the electric vehicle sector. Manganese is also being added to lithium-iron-phosphate (LFP) batteries to make lithium manganese iron phosphate (LMFP) batteries, increasing their energy density, capacity and low-temperature performance.
Manganese production by country
The Investing News Network has compiled an overview of the nine top manganese producers by country in 2024. As the manganese market continues to develop, it’s useful to learn about the top manganese-producing countries, including the three highest producers: South Africa, Gabon and Australia.
South Africa is particularly notable, as it is the source of 37 percent of the manganese production in the world. Interestingly, South Africa is also home to almost 33 percent of global economic manganese mineral reserves, although many other countries are significant manganese producers with sizeable reserves.
All stats on manganese production by country are taken from the US Geological Survey’s (USGS) most recent report on the metal and mine data is sourced from MiningDataOnline.
1. South Africa
Manganese production: 7.4 million metric tons
Manganese reserves: 560 million metric tons
South Africa, the world’s largest producer of manganese in the world by far, produced 7.4 million metric tons of manganese in 2024, up 200,000 MT compared to 2023. The country also holds the largest reserves of manganese at 560 million metric tons and 70 percent of the world’s known manganese ore resources.
South32 (ASX:S32,OTC Pink:SHTLF) is a major presence in the South African manganese industry. The diversified miner also produces bauxite, alumina and thermal and metallurgical coal, as well as other in-demand minerals.
The company holds a 44 percent indirect interest in the South Africa Manganese operation in the manganese-rich Kalahari Basin alongside joint venture partner Anglo American (LSE:AAL,OTCQX:AAUKF) at 29.6 percent. The operations consist of the open-pit Mamatwan mine and the underground Wessels mine.
Jupiter Mines (ASX:JMS) is also operating in the area at its 49.9 percent owned Tshipi Borwa mine. Tshipi Borwa is considered the largest manganese mine in South Africa and one of the five largest in the world.
2. Gabon
Manganese production: 4.6 million metric tons
Gabon's manganese production in 2024 was 4.6 million metric tons, making it the second highest manganese-producing country. Located on the central-western coast of Africa, Gabon was the origin of 63 percent of US manganese ore imports in 2024.
Moanda is a key manganese operation in the country. Eramet (EPA:ERA), the world’s second largest miner of high-grade manganese ore, operates the mine through its subsidiary COMILOG. In the fourth quarter of 2024, Eramet temporarily paused production at Moanda in reaction to market oversupply.
3. Australia
Manganese production: 2.8 million metric tons
Australia’s manganese production in 2024 was 2.8 million metric tons of manganese, just below 2023's 2.86 million MT.
As the largest producer of manganese ore, South32 has a 60 percent stake in the GEMCO manganese operations in the Northern Territory. The open-cut manganese mine is one of the world’s lowest-cost manganese ore producers. Anglo American holds the other 40 percent interest in GEMCO.
South32 anticipates the damage to its wharf operations brought on by Tropical Cyclone Megan will restrict export sales until at least the first quarter of the 2025 calendar year.
South32 and Anglo American previously owned the Tasmanian Electro Metallurgical Company (TEMCO) alloy smelter, but sold the facility to GFG Alliance in 2021.
4. Ghana
Manganese production: 820,000 metric tons
In 2024, Ghana produced 820,000 metric tons of manganese, slightly up from the prior year. Most manganese mined in Ghana comes from the western region around the city of Takoradi.
Consolidated Minerals, better known as Consmin, holds a 90 percent stake in Ghana Manganese Company, which runs the Nsuta mine. Consmin, a subsidiary of Ningxia Tianyuan Manganese Industry (TMI), is one of the four largest producers of manganese in the world by volume.
Manganese ore from the operation was traditionally destined for the electrolytic manganese metal market, much of it as captive supply for TMI’s China-based operations.
5. India
Manganese production: 800,000 metric tons
In 2024, India produced 800,000 metric tons of manganese metal, up 56,000 MT year-over-year.
As with China and Brazil, India is one of the leaders in manganese consumption. The vast majority of India’s manganese goes to the production of steel.
State-owned MOIL is India's largest manganese producer and controls the country's only electrolytic manganese dioxide (EMD) manufacturing plant. In its fiscal 2023/2024, which runs from April to March, MOIL posted all-time high manganese ore production of 1.76 million MT. In the first nine months of its fiscal 2024/2025 period, MOIL reported 1.33 million MT of manganese ore production.
6. China
Manganese production: 770,000 metric tons
China manganese production in 2024 was 770,000 metric tons of the metal, just over its production from 2023. However, it remains a sizeable decrease from the 1.34 million MT of manganese China produced in 2020. Much of this decline can be attributed to COVID-19-related disruptions and more recently production cuts on lower demand from the country's property sector.
As mentioned, the country is not only a player in manganese ore production, but also a major consumer of manganese as it uses large amounts of the metal in steelmaking.
Several large manganese ore deposits were reportedly discovered in Guizhou province in 2017, but have yet to be advanced. They are not counted by the US Geological Survey, which places China’s economic manganese reserves at 280,000 metric tons — the second largest globally.
Firebird Metals (ASX:FRB,OTC Pink:FRBMF) is partnering with a Chinese company to build a high-purity manganese sulfate monohydrate plant in China that will provide materials for the EV battery industry.
7. Brazil
Manganese production: 590,000 metric tons
Brazil produced 590,000 metric tons of manganese in 2024, 2,000 MT higher than its output in 2023.
Major miner Vale (NYSE:VALE) was previously the largest manganese miner in the country, accounting for 70 percent of the market. However, in 2022 the company offloaded its Center-West manganese and iron ore assets in Brazil to J&F Investimentos, whose subsidiary Lhg Mining now operates them.
In the first half of 2023, Lhg announced it had resumed manganese operations at the Urucum underground mine in Brazil. In October of that year, J&F shared plans in its budget to invest US$1 billion in the iron and manganese operations.
Buritirama Mining, a subsidiary of Grupo Buritipar, is another large manganese producer in Brazil. The company plans to make a significant investment of US$200 million to expand operations at its Para state mine.
8. Malaysia
Manganese production: 410,000 metric tons
Malaysia produced 410,000 metric tons of manganese in 2024, on par with the previous year. The country recently emerged on the scene as a new hub for manganese ferroalloy production.
Malaysia’s ferromanganese production accounts for 24 percent of US imports, as per the USGS. OM Sarawak, a subsidiary of Singapore-based manganese and silicon metals company OM Holdings (ASX:OMH,OTCQX:OMHI), owns a ferrosilicon and manganese alloy smelter in Malaysia. The smelting complex produced 317,995 MT of manganese alloy in 2024.
9. Côte d’Ivoire
Manganese production: 360,000 metric tons
The West African nation of Côte d’Ivoire produced 360,000 metric tons of manganese in 2024, nearly on par with the 357,000 MT produced in 2023. The country has ramped up its manganese production significantly in the last decade, peaking at 525,000 MT in 2020.
According to Côte d’Ivoire's Ministry of Economy, Planning and Development, there are four operating manganese mines as of 2024: Bondoukou, Guitry, Kaniasso and Lagnonkaha.
The majority of Côte d’Ivoire's manganese exports make their way to steel-producing giant China, followed by India and Latvia.
FAQs for manganese
Is manganese a metal?
Manganese is considered an important industrial metal. With the atomic number 25, it is a hard, brittle, silvery metal that is only second to iron among the transition elements in its abundance in Earth’s crust.
What function does manganese dioxide have in batteries?
Manganese dioxide has long been used as a depolarizer in alkaline batteries, but this is not the manganese battery market that is now the most interesting. Attention is being drawn to lithium-ion battery chemistries that require manganese — such as lithium-manganese oxide batteries and lithium-nickel-manganese-cobalt oxide batteries.
In these batteries, electrolytic manganese dioxide is used as a cathode material. Investors who believe battery sector demand for manganese will increase are optimistic that lithium-ion batteries that require manganese will become more common in the future.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Keep reading...Show less
05 March
Firebird Metals Announces First Production of LMFP Batteries for EVs
Western Australia-focused manganese developer Firebird Metals (ASX:FRB) has started testwork and produced its first lithium manganese iron phosphate (LMFP) batteries for electric vehicles (EVs).
The company said in a Tuesday (March 4) press release that it is the first Australian company to achieve this milestone, adding that it is set to become a low-cost manganese-based cathode material business.
“Manganese sulphate is a critical element within LMFP and our manganese processing knowledge and IP enables Firebird to drive significant value by co-precipitation,” said Firebird Managing Director Peter Allen.
The company announced a strategic collaboration with Central South University in Changsha, the capital city of China's Hunan province, this past October. It is conducting the testwork under this agreement.
“We expect our process to translate into substantial cost advantages in sulphate production by bypassing the manganese sulphate crystallisation process, which is the largest component of our operating cost,” said Allen.
A few non-Chinese companies are able to produce LMFP, but most supply comes from China given its domestic manufacturers and technological advancements. In fact, the world’s first LMFP project was commissioned in Quijing, Yunnan in 2022. It is run by Shenzhen Dynanonic (SZSE:300769) and has a capacity of 110,000 tonnes per year.
In January, China announced plans to limit exports of LFP and LMFP processing technologies. According to BEST Magazine, analysts said the move was partly a response to planned US tariffs on imports from China.
In October of last year, UK-based material powers company Integral Power said it had made a breakthrough in LMFP cathode active materials for battery cells. The company said its work could increase EV range by up to 20 percent.
Moving forward, Firebird said it is “well-positioned to deliver” on its LMFP production strategy through its sector-leading manganese team and its proposed tier-one manganese sulphate plant.
So far five batches of LMFP cathode material have been tested, with plans to test 100 batches. Each batch will be turned into LMFP button batteries, with testwork results being used to complete a scoping study.
Shares of the company rose 7.6 percent to AU$0.099 after Tuesday's announcement.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
Keep reading...Show less
16 January
Element25 Secures Key Approval for Butcherbird Manganese Mine Expansion
Element25 (ASX:E25) has secured approval for an expansion at its Butcherbird manganese mine.
The company said on Monday (January 13) that its mining proposal and mine closure plan have received a green light from Western Australia's Department of Energy, Mines, Industry Regulation and Safety.
“This is a key approval under the Western Australian regulatory framework and marks an important milestone for the Butcherbird project,” the company explained in a press release.
Located in the Pilbara region, Butcherbird is 100 percent owned by Element25 and hosts Australia’s largest onshore manganese resource. As per a January 2024 feasibility study, the proposed expansion would increase Butcherbird's manganese oxide concentrate production to 1.1 million tonnes per year over a mine life of 12 years.
The company is currently working toward the development of an expanded processing facility at Butcherbird that will allow it to reach that number. Some of the material will be directed to the downstream steel industry.
Element25 will also use the manganese oxide concentrate from Butcherbird as feedstock for its "first-of-its-kind" battery-grade, high-purity manganese sulphate monohydrate (HPMSM) processing facility. The facility will be constructed in Louisiana, US, in partnership with carmakers General Motors (NYSE:GM) and Stellantis (NYSE:STLA).
This past September, Element25 announced the receipt of a US$166 million grant from the US Department of Energy for the construction of the HPMSM. That was on top of US$115 million from General Motors and Stellantis.
The company said a works approval is now the only document it is still waiting for at Butcherbird. Element25 submitted its application in October 2024, and expects that it will be granted in the next few weeks.
A tails storage facility has been fully approved to support operations for the first six years of processing with stage lifts; the company intends to follow up with a longer-term plan.
All other required approvals and access agreements, such as water abstraction, heritage clearances, Native Title and pastoral agreements, are in place and established from Stage 1 operations at Butcherbird.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
Keep reading...Show less
14 January
Manganese Market Forecast: Top Trends for Manganese in 2025
The manganese market was impacted by various factors in 2024, including growing demand for battery applications, geopolitical risk, production disruptions and strategic investments.
Positive demand from the electric vehicle (EV) sector offered support as automakers increasingly turned to manganese-rich chemistries like lithium-manganese-iron-phosphate (LMFP) to cut costs and reduce reliance on nickel and cobalt.
Meanwhile, supply chain vulnerabilities emerged due to political instability in major producing regions and heightened environmental scrutiny. In response, nations such as the US and Australia accelerated investments in refining facilities to reduce dependence on China and secure their EV battery supply chains.
Later in the year, oversupply from weaker-than-expected Chinese steel demand muted price growth in the space.
“Manganese sulphate prices turned bearish in Q4 … with slow spot buying in China and the effects of weather-related mine supply disruptions in Australia,” a Fastmarkets report from December reads.
Despite these challenges, the firm foresees a recovery in the manganese market in the years ahead.
“We expect demand to grow from now and into the 2030s, driven in part by new chemistries like LMFP,” Fastmarkets notes. In the short to mid-term, China’s supply base looks set to fulfil global needs of high purity manganese, though there is likely to be a long-term need for a greater high purity manganese capacity.”
Oversupply dampens manganese prices
Clare Hanna, senior steel analyst at CRU Group, recounted the most impactful 2024 trends for manganese.
“The key drivers in 2024 were the outage at South32’s (ASX:S32,OTC Pink:SHTLF)Groote Eylandt mine, the surge in alternative supplies and the weak state of Chinese demand,” she said.
“This led prices to first rise very sharply and then plummet as the market oversupply became apparent.”
South32 — the world’s largest manganese producer — saw operations suspended at its Australia-based Groote Eylandt mine in March due to a tropical cyclone. A phased return to mining began in June of last year; however, the severity of flooding due to the cyclone has impacted a wharf and the company’s ability to export.
In a statement, South32 said it expects exports to resume in its fiscal Q3 2025 ending March 31.
Some of this reduced 2024 output was offset by purchase declines in China. As Hanna explained, Chinese demand was weak due to lower demand for steel rebar, which was driven by weakness in the Chinese real estate sector.
Prices for manganese ore could face headwinds in the year ahead as South32 continues to ramp up Groote Eylandt.
“The return of South32 to the market and the increase in high-grade supply could be a challenge, given the Chinese real estate market is not expected to improve significantly. Steel demand and production in other markets is forecast to improve,” Hanna explained to INN.
Key manganese demand drivers for 2025
Prized for their high energy density, automakers are increasingly turning to manganese-based batteries for their cost-effectiveness and reduced reliance on expensive metals like nickel and cobalt.
That said, as Hanna pointed out, the majority of manganese demand is still attributed to the steel sector.
“There is a lot of noise in the market about manganese usage in EV batteries, driven in part by companies looking for finance, and also because downstream, the processing of manganese ore for battery-grade manganese products is heavily concentrated in China at the moment," she said. “However, it is worth recognizing that in terms of manganese ore demand, the share that is going into EV supply chains is very small.”
The senior analyst went on to note that those dynamics are likely to shift in the coming years.
“While (EV sector) volume is growing and the demand from the steel sector is likely to decline over time, demand from steel supply chains will remain the dominant source of manganese ore demand, and therefore the biggest demand-side influence on manganese ore prices,” said Hanna.
She went on to explain why EV market usage has come to dominate the manganese narrative.
“When looking for investment, companies like to align their projects with growing market sectors, so when companies are talking about new mine investments, they often reference the EV supply chain — even if in practice, most of the ore will likely go to ferroalloy producers for consumption in steel production.”
New manganese sources outside of China
Like so many of the battery metals, the manganese supply chain is dominated by China, a factor many western nations are grappling with. In an effort to bolster supply outside of China, significant investments were made in 2024.
“What we are seeing is a number of projects aimed at producing high-purity manganese sulfate monohydrate (HPMSM) outside of China (in order to) reduce OEM EV battery supply chain risk, or take advantage of the benefits of the Inflation Reduction Act. Some of these are aligned with new or existing upstream mines,” said Hanna.
Although the plan looks good on paper, the CRU steel specialist pointed out the challenges of building HPMSM supply independent of China. She noted that operational plants are a couple of years off at minimum.
“Production of HPMSM is a chemical process, so existing producers of manganese metal or other manganese chemicals would be able to move into this product area more easily than ferroalloy producers, although there are still a lot of technical challenges. There are no ferroalloy producers outside of China moving to produce HPMSM," Hanna added.
Some of the projects in the pipeline include the Manganese Metal Company’s HPMSM Metal to Crystal project in South Africa. Described as a more sustainable process, the Metal to Crystal production method will start with a 5,000 metric ton per annum plant in 2028, followed by a 30,000 metric ton per annum plant, targeted beyond 2030.
In addition to that, Hanna spoke about South32’s Arizona-based Hermosa manganese-zinc project, which received a US$20 million grant from the US Department of Defense in May 2024. The monies have been earmarked for the acceleration of domestic production of battery-grade manganese.
Manganese processing plants have also attracted US government funding.
In September, Element 25 (ASX:E25:OTCQX:ELMT) secured a US$166 million grant from the US Department of Energy under the Battery Materials Processing Grant Program.
The funding will support the construction of the firm’s HPMSM facility in Louisiana. The grant is in addition to US$115 million already secured from offtake partners General Motors (NYSE:GM) and Stellantis (NYSE:STLA).
The feedstock for the Louisiana plant will originate from Element 25’s Butcherbird mine in Australia. In November, the company released a new resource estimate for the planned expansion at Butcherbird.
According to the company, the new estimate registers a 142 percent increase in measured and indicated resources, which now total 130 million metric tons at 10.23 percent manganese.
Additionally, the site hosts a total resource of 274 million metric tons at 10 percent manganese.
Hanna also referenced Euro Manganese (TSXV:EMN,OTCQB:EUMNF), which is developing a project in the Czech Republic using manganese from old mine tailings, as well as looking at plans for a plant in Québec, Canada.
“Firebird Metals (ASX:FRB,OTC Pink:FRBMF) (in) Australia, has adopted an alternative approach,” she said. “They are partnering with a Chinese group to build an HPMSM plant in China, which could eventually be supplied with ore from an Australian mine.”
What trends will drive manganese in 2025?
While these supply chain diversification efforts aim to secure and steady output, Hanna warned of trends to watch in 2025. Top of mind is South32’s Groote Eylandt mine and its ability to restart shipments.
In South Africa, she highlighted national rail operator Transnet's plans for expansion.
“Transnet’s plans for the new port and rail infrastructure at Coega in South Africa are still some way off,” said Hanna. “The company’s performance on the existing rail network and ability to open up the routes beyond traditional miners will influence how much ore needs to be moved via the higher cost rail route.”
Plans remain distant, while inefficiencies in the existing rail network could raise transport costs.
Meanwhile, manganese producer Eramet (EPA:ERA), has faced challenges to its production expansion plans at the Moanda project in Gabon. Hanna noted that Gabon’s production expansion in Moanda faces delays due to weak demand, compounded by past disruptions from railway landslides.
“These (plans) were slowed in Q4 by weak demand,” she said. “Work continues on improvements to the Trans Gabon Railway. Landslides and derailments in the past have disrupted supply causing ore price volatility.”
A resolution to the war in Ukraine could also serve as a catalyst to the 2025 supply and demand story.
“Historically, Ukraine was a significant producer and consumer of manganese alloys. Both have been slowed by the war. In the event of a ceasefire this year, supply is likely to return faster than demand as the large Mauripol steel plant was destroyed during the Russian invasion,” she added.
According to Hanna, key areas to watch as the year progresses are trade actions and carbon taxes.
These include the US investigation into ferrosilicon imports from several countries, as well as potential broad tariffs from the incoming Trump administration.
Elsewhere, the EU’s probe into manganese alloys and ferrosilicon may raise regional prices
“The EU Carbon Border Adjustment Mechanism is due to come in at the beginning of 2026. Ferromanganese is covered, silicomanganese is not," said Hanna. “There is a lot of uncertainty about the impact of this.”
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Keep reading...Show less
01 November 2024
Element 25 Increases MRE for Butcherbird Manganese Mine
Manganese-focused producer Element 25 (ASX:E25,OTCQX:ELMTF) provided an update to the mineral resource estimate for its Butcherbird manganese operations earlier this week.
The company recently completed an infill drilling program at the site, which targeted known mineralisation within granted mining lease M52/1074, where Butcherbird Stage 1 mining and processing operations are located.
Element 25 reported a 142 percent increase in measured and indicated resources, which now total 130 million tonnes at 10.23 percent manganese. Additionally, the site hosts a total resource of 274 million tonnes at 10 percent manganese, marking a 6 percent increase from its 263 million tonne resource estimate from April 2019.
“The increase in Measured and Indicated inventory is expected to support a significant increase in the mining reserve which will translate to a longer mine life and reserve tail, an important metric in financing the project,” Element 25 Managing Director Justin Brown said. “The updated MRE will support the re-statement of the Butcherbird Ore Reserve, pending mine optimisation and scheduling activities which are currently in progress.”
Located approximately 130 kilometers south of Newman in Western Australia, Butcherbird is 100 percent owned by Element 25 and is said to be the country’s largest onshore manganese resource.
The company released a feasibility study on the proposed expansion of the Butcherbird operations to 1.1 million tonnes per annum in January. Detailed design, planning and procurement for the expansion are in progress.
According to Element 25’s website, the expansion Butcherbird’s processing facility is also essential in providing feedstock for its planned battery-grade high-purity manganese sulphate monohydrate (HPMSM) refinery in Louisiana, US.
The HPMSM refinery is the recipient of a US$166 million grant from the US Department of Energy, which will be used to cover up to half of the facility’s capital construction costs. Element 25 has also secured US$115 million from partners General Motors (NYSE:GM) and Stellantis (NYSE:STLA).
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
Keep reading...Show less
25 September 2024
Element 25 Chosen for US$166 Million Grant from US Department of Energy
Element 25 (ASX:E25,OTCQX:ELMTF) has been selected to receive a US$166 million grant from the US Department of Energy, the company said in an announcement on Tuesday (September 24).
The funds will come from the Battery Materials Processing Grant Program, and will be used for the construction of the company’s proposed battery-grade high-purity manganese sulphate monohydrate (HPMSM) facility in Louisiana.
The Battery Materials Processing Grant Program has a US$3 billion budget to distribute grants for endeavours that will help ensure that the US has a viable battery materials processing industry.
Element 25 has already secured US$115 million from offtake partners General Motors (NYSE:GM) and Stellantis (NYSE:STLA). The US$166 million grant will go on top of this as part of the company’s financing strategy.
"The grant will fund up to half of the construction capital costs for the project and when combined with existing commitments, will propel the project towards financial close and commencement of construction," explained Justin Brown, managing director of Element 25. He added that HPMSM facility will create long-term jobs in the state.
Manganese ore will be shipped to Louisiana from the company’s Butcherbird manganese mine in Western Australia.
The company said it has developed an innovative, advanced processing flowsheet to convert manganese concentrate to HPMSM, honing in on lower energy consumption and the reduction of waste.
After conversion, the HPMSM will be directed into the US electric vehicle supply chain.
The facility is expected to be 230,00 square feet with annual production of 71,650 tonnes of HPMSM. Element 25 said it will be one of the first HPMSM-producing commercial facilities in the US, reducing the country’s reliance on China.
Subject to grant finalisation, the execution team will work to finish the project schedule.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
Keep reading...Show less
Latest News
Latest Press Releases
Related News
TOP STOCKS
American Battery4.030.24
Aion Therapeutic0.10-0.01
Cybin Corp2.140.00
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.