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![Firebird Metals](https://investingnews.com/media-library/firebird-metals.png?id=30164468&width=1200&height=800)
Firebird Raises $3.5m To Accelerate Oakover Development
Firebird Metals Limited (ASX: FRB) (“Firebird” or “the Company”) is pleased to announce that it has received firm commitments to raise $3.5 million (before costs) via a strongly supported placement to sophisticated and professional investors (“Placement”), to accelerate development and exploration activities at its flagship Oakover Manganese Project (“Oakover”).
Highlights
- Firm commitments received for $3.5 million placement
- Firebird Directors have applied for $420,000 in the Placement, subject to shareholder approval
- Placement proceeds to fund completion of infill drilling, metallurgical test work, environmental surveys, ongoing exploration and relevant development studies
- Firebird is now well-funded to accelerate development of the Oakover Manganese Project, following recent completion of a Manganese Concentrate Scoping Study which confirmed the exciting, long-term potential of Oakover as a Manganese hub
Firebird Directors and related parties have applied for $420,000 in the Placement, which will be subject to shareholder approval.
Under the Placement, Firebird will issue 17.5 million new fully paid ordinary shares in the Company (“Shares”) at an issue price of $0.20 per Share, together with one free attaching option (“Placement Options”) for every two Shares issued. The Placement Options will be issued subject to shareholder approval, exercisable at $0.30 each and expire two years from date of issue.
Commenting on the exciting future ahead for Firebird, Managing Director Peter Allen said:
“We are very pleased with the overwhelming level of interest and support from both existing shareholders and new investors and thank them for their support, as we continue to develop and grow our exciting Oakover Manganese Project into Western Australia’s next major Manganese operation.
“Since listing last year, we have been focused on rapidly growing our advanced portfolio, led by Oakover, towards the development phase. We have delivered on this objective, culminating in the completion of the highly impressive Oakover Scoping Study, which clearly showed the excellent, long-term potential of the Project.
“We are now focused on delivering the next 12 months, with a key focus on extending Life-of-Mine at Oakover, commencing and completing key development studies, advancing ESG objectives and adding to our Manganese inventory through targeted exploration across our other projects, starting with Hill 616. Importantly, current and long-term manganese market fundamentals are strong and supported by the growing demand for battery minerals and infrastructure (steel) markets and we are excited by the prospect of Oakover becoming a key supplier to these markets in the coming years.”
Use of Funds
Funds raised from the Placement will be primarily applied towards the following activities at Oakover and across other Projects, including Hill 616:
- Infill drilling;
- Metallurgical test work (Ore Sorting, DMS, Hydrometallurgy);
- Environmental surveys;
- Scoping Study update and Pre-Feasibility study work;
- Mapping and ongoing exploration programs; and
- General working capital purposes
The Placement price of $0.20 represents a 4.8% discount to the last close of price on Friday, 12 August 2022 (A$0.21).
The Placement Shares will be issued across two tranches, as follows:
- 12,900,000 Shares will be issued pursuant to the Company’s existing placement capacity under ASX Listing Rule 7.1 (7,442,500 Shares) and ASX Listing Rule 7.1A (5,457,500 Shares) (Tranche 1); and
- 4,600,000 Shares, including the Director participation Shares, will be subject to shareholder approval (“Tranche 2”) to be sought at a general meeting of shareholders expected to be held in October 2022 (“General Meeting”).
The issue of the 9,250,000 Placement Options will also be subject to Shareholder approval at the General Meeting.
Tranche 1 Shares are expected to settle on Wednesday, 24 August 2022 and will commence trading on the ASX on a normal basis on Thursday, 25 August 2022.
Euroz Hartleys Limited was Lead Manager to the Placement.
In addition to the Placement, Firebird has agreed with consulting group Increva Pty Ltd to receive payment in FRB securities on the same terms as the Placement to a maximum of $200,000 (1,000,000 shares) for specialist technical consulting work in the ongoing studies.
The Company’s shares are expected to resume trading on the ASX from market open today, 17th August 2022.
Click here for the full ASX Release
This article includes content from Firebird Metals 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.
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Firebird Metals
Overview
Firebird Metals (ASX:FRB) is an Australian mining company that’s well-positioned to develop a new manganese mining operation in Western Australia with a strategy to become a global battery cathode producer supporting a rapidly expanding electric vehicle market.
Batteries currently represent the largest non-alloy market for manganese, accounting for roughly 3 percent of global annual manganese consumption. The metal has a long history of being used as a cathode material in batteries, both in its natural form and in the form of electrolytic manganese dioxide. That includes modern lithium-ion batteries, the supply and manufacturing chain for which could potentially grow by over 30 percent annually from now through 2030.
Manganese-rich batteries are increasingly being held up as an alternative to standard lithium-ion batteries, leading to an expected exponential demand for the mineral. Tesla alone has already committed to producing manganese-based batteries for two thirds of its supply, owing to the metal's relative abundance and lower cost compared to nickel and cobalt.
Lithium-iron-phosphate (LFP) represents one of the most prominent phosphate battery configurations. In recent years, however, the business case for using manganese as a cathode material for lithium-ion batteries, known as lithium manganese iron phosphate (LMFP), has become stronger. LMFP not only improves the battery’s energy density, but also increases capacity by up to 20 percent. LMFP batteries also perform better in low-temperature environments.
As LFP rapidly nears its theoretical energy density capacity, the rise of LMFP batteries as a replacement is all but inevitable as the world continues its slow march towards electrification and sustainable energy. Consequently, this means that demand for battery-grade manganese is set to explode in the coming years. And Firebird Metals is more than ready to step in and provide some much-needed supply.
Firebird maintains ownership over a massive manganese resource in Western Australia's Pilbara region in the form of its flagship Oakover project. Characterised by near-surface mineralisation, Oakover houses an estimated 176.65 million tons (Mt) of manganese across several different targets. Because of Oakover's favourable geology, Firebird can potentially leverage Oakover to supply not just the battery market but also multiple other industries, such as steel, all through a low-cost, simple mining operation.
The end result? Significant returns for investors — a projection only further emphasised by the impressive results returned by a recent concentrate scoping study on the project. Firebird maintains several other projects in Australia as well, including the Oakover-like Hill 616 and the exploration-focused Wadanya.
Firebird's long-term strategy reaches far beyond Australia's borders, however. From mining to downstream processing, the company's vision is to become a global cathode producer. For that, Firebird is looking to China, which to date accounts for roughly 90 percent of global manganese sulphate demand.
In early September 2023, the company announced its plans to establish a processing plant in China, noting to investors that an in-house scoping study was already well underway. According to Firebird's managing director Peter Allen, the construction of this plant represents the next phase of major growth for Firebird. As with the rest of Firebird's operations, this new plant will be constructed with the company's ESG methodology front of mind, ensuring transparency and accountability in addition to human welfare, support for local communities and environmental sustainability.
This plan, should it proceed apace, has the potential to make an enormous impact on global manganese supply — all while positioning Firebird as a cost-competitive player in the manganese sulphate market and a promising investment opportunity.
Company Highlights
- An Australian junior exploration company, Firebird Resources is well-positioned to take advantage of the growing demand for manganese as the rapidly expanding electric vehicle market and global electrification continue to ramp up.
- Firebird maintains ownership of a massive manganese resource in Australia with significant growth potential.
- A recent concentrate scoping study confirmed the potential and profitability of the company's flagship project, Oakover, situated in Western Australia's Pilbara region.
- Firebird's long-term goal involves leveraging its manganese resource to position itself as a leading global producer of manganese sulphate for the battery industry.
- The company is currently embarking on a scoping study with plans to build a manganese sulphate plant in China. This will allow it to gain a foothold in the Chinese market, which currently accounts for 90 percent of global manganese sulphate demand.
- This study represents the next phase of major growth for Firebird, and is a significant part of the company's overall strategy to establish itself as a near-term producer of battery-grade high-purity manganese sulphate.
Key Projects
Oakover
Situated 85 kilometres East of Newman in Western Australia's East Pilbara Manganese Province, Firebird's flagship Oakover project is characterised by favourable near-surface and shallow-dipping mineralisation. The project's favourable geology provides Firebird with multiple processing options, with the company currently targeting production of manganese concentrate and high-purity manganese sulphate. Oakover has, over the course of its history, been subject to extensive modern and historic exploration.
The most recent exploration program, completed by Firebird, resulted in a mineral resource estimate of 176.65 Mt at 9.9 percent manganese, including 105.8Mt at 10.1 percent manganese in the indicated resource category.
Project Highlights:
- Confirmed Potential: Firebird recently achieved a major milestone at Oakover with the completion of a concentrate scoping study which confirmed the project's outstanding long-term potential as a manganese hub. Highlights of the study include:
- Potential 18-year mine life.
- 1.2 Mt per annum with low strip ratio (0.45:1) and mining costs.
- Upfront capital investment of A$124 million with low capex optionality.
- A$741.3 million NPV and IRR of 73.1 percent.
- Indicated material accounts for 99.2 percent of material processed.
- 80 percent uplift in indicated resource at Oakover to 105.8 Mt.
- Metallurgical Results: Firebird has undertaken extensive metallurgical and hydrometallurgical testwork at Oakover, with results providing the company with a high level of confidence in its growth and profit potential. Notable highlights are as follows:
- Achievable 30 to 32 percent manganese concentrate saleable product
- Achievable battery-grade manganese sulphate
- Current Plans: Firebird's concentrate scoping study assessed two production scenarios, each utilising simple processing, crush, screen, scrub and DMS beneficiation. It has chosen to pursue full production from startup with ~4 Mtpa processing and ~1.2 Mtpa of 30 to 32 percent manganese concentrate.
Hill 616
Located 35 kilometres south of the Oakover project, Hill 616 shares highly similar geological characteristics to Firebird's flagship, with shallow, gently dipping geology. Covering approximately 15.7 square kilometres within the Peak Hill Mineral Field, Hill 616 has to date undergone extensive historical drilling, with 116 holes for 4,900 metres over a 2.2-kilometre strike.
This drilling has resulted in an inferred mineral resource of 57.5 Mt at 12.2 percent manganese.
Wandanya
Wandanya is a recently established exploration-focused project situated 50 kilometres southwest of the world-class Woodie Woodie Manganese Mine. Its close proximity to Port Hedland affords it considerable direct shipping ore potential. Rock chip results indicate that Wandanya's deposits are also exceptionally high grade, returning results up to 64.9 percent and 55.2 percent manganese.
Management Team
Evan Cranston — Chairperson
Evan Cranston is an experienced mining executive with a background in corporate and mining law. He is the principal of corporate advisory and administration firm Konkera Corporate and has extensive experience in the areas of equity capital markets, corporate finance, structuring, asset acquisition, corporate governance and external stakeholder relations.
Cranston holds both a Bachelor of Commerce and Bachelor of Laws from the University of Western Australia. He is currently the non-executive chairman of African Gold (ASX:A1G) and Benz Mining (TSXV:BZ, ASX:BNZ).
Peter Allen — Managing Director
Peter Allen is a mining executive with more than 20 years of experience in marketing of manganese, lithium and a range of other commodities. He was previously the managing director of marketing for Consolidated Minerals Limited, which operates Woodie Woodie mine in WA and the Nsuta Manganese mine in Ghana.
Allen assisted manganese-focused explorer Element 25 (ASX:E25) and Gulf Manganese Corporation (ASX:GMC) with PFS and product marketing. More recently, he was the marketing manager for AVZ Minerals (ASX:AVZ), a company focussed on the Manono lithium project.
Wei Li — Executive Director & CFO
Wei Li is a chartered accountant with extensive professional experience across several key sectors which include the resource industry, international trade, capital markets, project management of IPOs and spin-outs, and financial accounting. His experience includes being employed by and acting as director and CFO of several companies, predominantly in the resource sector. Prior to these roles, he managed a private base metal exploration company in the NT of Australia and assisted in commissioning an AU$150-million electrolytic manganese dioxide plant in Hunan China.
Li is currently a non-executive director of Macro Metals.
Ashley Pattison — Non-executive Director
Ashley Pattison brings over 20 years of experience in the resources sector across corporate finance and operational roles. Qualified as chartered accountant, he has extensive experience in operations, finance, strategy and corporate finance. Pattison has been the managing director of a number of listed and private mining companies over the past 10 years and also CEO of a listed mining service company.
Pattinson is currently the executive chairman of PC Gold and a non-executive director of Industrial Minerals (ASX:IND) and Macro Metals.
Brett Grosvenor — Non-executive Director
Brett Grosvenor is an experienced mining executive with over 25 years of experience in the mining and power industries. He holds a dual tertiary qualification in engineering and a master’s in business.
Infill Drilling Completed at Butcherbird Targeting Reserve Extension to Support Expansion
Element 25 Limited (E25 or Company) (ASX: E25; OTCQX: ELMTF) is pleased to advise that resource infill drilling has been completed at the Company’s 100%-owned Butcherbird Manganese Project (Butcherbird or Project). E25 recently completed a Feasibility Study (FS) to support the Butcherbird Expansion Project, which is targeting a nominal 1.1 million tonnes per annum of manganese concentrate production1.
Current reserves are based around mineral resources within granted mining lease M52/1074, of which less than half has been drilled to a sufficient density to meet the requirements for measured and indicated classifications. The balance is classified as inferred. The additional drilling will provide infill data to better define and potentially convert these areas to indicated or measured categories to support the re-estimation of mine reserves. The increase in the “reserve tail” will support project financing activities with NAIF and other potential financiers who are currently undertaking project expansion due diligence2.
HIGHLIGHTS
- 207 percussion drill holes have been completed for 6,202m targeting infill of existing inferred resources.
- All samples have been dispatched to Bureau Veritas for assay with results pending.
Figure 1: Aerial photograph of the resource infill drilling rig with support vehicles and personnel.
The Project hosts a global resource of over 260Mt of manganese ore3 however the current reserves are limited to the areas which have been drilled out to measured and indicated classifications which are required as the basis for a statement of reserves. The current drilling programme was designed to infill existing inferred resources to a sufficient data density, based on variographic analysis, to convert the inferred resources within granted mining lease M52/1074 to indicated and/or measured.
The additional drilling information, combined with historical data, will be used to recalculate the resource base to support a recalculation of the proved and probable reserves to support project financing activities for the Butcherbird Expansion Project by increasing the “reserve tail”. Samples have been submitted for assay with results pending.
Figure 2: Drillhole collar location plan summarising existing and proposed drillhole collar locations.
Element 25 Managing Director Justin Brown said:
“This drilling programme will allow the global resource at Butcherbird to be recalculated with a higher degree of certainty which is expected to result in a signification conversion of inferred resources to measured and indicated classifications to increase the reserve tail in support of the planned ramp up to 1.1Mt production rates.”
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.
Element 25 Extends Share Purchase Plan
Element 25 Limited (E25 or Company) (ASX: E25; OTCQX: ELMTF) advises that the closing date for the current Share Purchase Plan (SPP)1 will be extended until 5:00pm, Wednesday, 26 June 2024 Australian Western Standard Time (AWST).
- Extension of Element 25 Share Purchase Plan with revised closing date, Wednesday, 26 June 2024 at 5:00pm AWST.
- Funds raised from the Share Purchase Plan will enable the Company to progress its current prime projects at the Butcherbird mine site (located in the southern Pilbara region of Western Australia), as part of the Butcherbird Stage 2 Expansion Project, as well as continuing to support the high purity manganese sulphate monohydrate (HPMSM) project to be built in Louisiana, USA in partnership with General Motors LLC and Stellantis NV.
- Shareholders can request an electronic copy of their personalised Share Purchase Plan form via Element 25’s share registry, Automic Group.
Under the SPP, the Company will offer eligible shareholders, who were registered shareholders as at 5:00pm (AWST) on Monday, 20 May 2024 (Record Date) the opportunity to apply for up to $30,000 of new fully paid ordinary shares (New Shares). New Shares will be issued at $0.27 per share, equivalent to a 14% discount to the volume weighted average price (VWAP) of Element 25 shares over the last five trading days prior to the announcement of the SPP1.
A revised indicative timetable with the new closing date for the SPP is as follows:
REVISED SPP TIMETABLE
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 Investigates Butcherbird Restart Options Amid Record High Manganese Ore Prices
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.
Manganese in Australia (Updated 2024)
Manganese is a hard, silvery metal with many uses in the world driving demand today. Manganese mines in Australia are working to meet that demand.
Despite being brittle, it adds strength and wear-resistance to metals like iron. It can be used to make glass and ceramics, and manganese sulphate is even used as a fungicide. Manganese is also an essential mineral in our diets, and is found in bones as well as organs like the kidneys, liver and brain.
But most substantially, manganese is used in the Australian and global industrial metals sector. Right now, about 85 to 90 percent of manganese demand comes from the steelmaking sector, including ironmaking.
Manganese in Australia: Battery market applications
While manganese is most commonly used in the steel and construction industries, the rechargeable battery sector is the second biggest demand sector of manganese. Nickel-manganese-cobalt (NMC) batteries are one of the most commonly used types of lithium-ion battery in hybrids and electric vehicles (EVs) today, as they have a have a high cycling rate, high capacity and high power, as well as a low self heating rate. Lithium-manganese-iron-phosphate (LMFP) batteries are also growing in popularity as they are more affordable than NMC batteries while bringing the energy density benefits of manganese to the lithium-iron-phosphate (LFP) formula.
Much of the world is slated to move toward EVs and hybrid cars, which may lead to a significant rise in demand (and prices) for production from manganese mines in Australia. Additionally, support for electrification and critical metals from many Western governments will be another factor driving their adoption. Not to mention China, which is currently one of the biggest suppliers and buyers of manganese, promises to phase out gas-burning cars entirely by 2035.
Manganese in Australia: Outlook for 2024
Manganese prices may be heavily driven by the steel sector, but it is the EV battery industry that has investors excited about manganese’s future.
In fact, demand for manganese sulphate is expected to double in the next 10 years thanks to the lithium-ion battery market. Though the steel sector will still be the biggest consumer of manganese, the battery industry is expected to impact the manganese supply chain.
While this industry is likely the fastest-growing player in the manganese production market, there are other industries to consider. For instance, the micronutrient market, which includes high-purity manganese, is expected to reach a market size of US$9.03 billion by 2032 compared to 2023's US$4.87 billion.
As mentioned, the alloy demand in the steel sector is huge. The manganese alloy industry was valued at US$20.61 billion in 2023, and it is expected to grow at a compound annual growth rate of 5.11 percent to reach US$29.21 billion in 2030, according to Maximize Market Research. This growth will be driven by increasing demand from both the steel industry and EV market.
Still, despite this increasing demand, manganese prices have been volatile over the last few years. Looking at the overall market for manganese in 2024, supply and demand should be broadly in balance, although there may be pinch points during the year, according to analysts at Project Blue.
“We expect ore prices to remain under pressure moving into 2024 due to the uncertainty facing the Chinese steel and construction market,” they wrote. The firm sees Chinese domestic demand supporting higher ore and alloy prices in the short term, and a potential global economic recovery in 2024 returning prices to a cost-driven level in the medium term.
“Thereafter, our price forecast is more driven by fundamentals and the need for new capacity to be developed,” the analysts added. “We expect prices in China to rise in the second half of the decade.”
Manganese mines in Australia
South Africa, Gabon and Australia are the world’s largest producers of manganese, and combined they hold about 61 percent of global reserves.
Australia is the third largest producer of manganese, putting out about 3 million tonnes per year. These manganese exports bring around AU$2 billion to the country every year. Although Australia has a large role in the global manganese market, production of the metal in Australia is relatively recent; it wasn’t mined there until 1965.
Australia's key manganese ore mines are Woodie Woodie, Groote Eylandt and Bootu Creek. Woodie Woodie is located in Western Australia and is operated by privately owned Consolidated Minerals. Groote Eylandt in the Northern Territory is operated by the Groote Eylandt Mining Company (GEMCO), a joint venture 60 percent owned by South32 (ASX:S32,LSE:S32,OTC Pink:SHTLF) and 40 percent owned by Anglo American (LSE:AAL,OTCQX:AAUKF). Also in the Northern Territory, Bootu Creek is owned by OM Holdings (ASX:OMH,OTCQX:OMHI) and has been on care and maintenance since January 2022.
South32 and Anglo American are both significant companies in the manganese space, with operations in top producer South Africa and other countries.
The Australian manganese market has faced a few ups and downs over the years. Most recently, operations at Groote Eylandt were suspended in mid-March 2024 following the destruction caused by tropical cyclone Megan making landfall in Australia’s Northern Territory.
The storm's impact on critical infrastructure at South32's manganese site included the wharf from which the company shipped its manganese ore as well as a haulage bridge that connected mining areas to processing facilities. South32's management is looking to January to March 2025 for the full resumption of activities at Groote Eylandt.
Australian manganese projects and plants
In terms of advanced-stage manganese projects under development in Australia, Black Canyon (ASX:BCA) holds a substantial land package in Western Australia including across the Balfour manganese field and the Oakover Basin. The company’s global mineral resource across the Balfour manganese field totals 314 million tonnes at 10.5 percent manganese for contained resources of 33.1 million tonnes of manganese.
During 2023 flowsheet testing at its Balfour manganese field project, Black Canyon produced its first batch of battery-grade high-purity manganese sulphate monohydrate (HPMSM) from manganese oxide samples taken from the KR1 deposit at Balfour. HPMSM is an important component of lithium-ion battery cathodes. Black Canyon is working to establishing a battery-grade manganese plant in Australia with a large-scale HPMSM pilot project to begin this year.
Other manganese companies with advanced development projects in Western Australia include Element 25 (ASX:E25) and Firebird Metals (ASX:FRB).
Element 25 is in the midst of advancing on a stage 2 expansion project at its wholly owned Butcherbird manganese operation to bring production up to approximately 1.1 million tonnes per year of high silica manganese ore. The company is working in partnership with General Motors (NYSE:GM) and Stellantis (NYSE:STLA) to construct a battery-grade HPMSM refinery in Louisiana, US, to produce up to 135,000 tonnes per year of high-purity manganese sulphate monohydrate for the US electric vehicle market using material recovered at Butcherbird.
Firebird Metals’ Oakover high-purity manganese project hosts a mineral resource estimate of 172 million tonnes at 9.9 percent manganese and an indicated resource of 105.8 million tonnes at 10.1 percent manganese. According to a recent scoping study, the site could host production of 1.2 million tonnes per year of manganese concentrate with an 18 year mine life.
Firebird is also integrating a downstream processing facility in China to produce battery-grade high-purity manganese sulphate for the LMFP battery market. In late May 2024, the company announced it has received the safety permit for Stage 1 of its China-based manganese sulphate plant in China. Stage 1 operations are slated to begin in late 2025 and will be fed with third party manganese, while Stage 2 is planned to be fed with manganese from Oakover.
Don’t forget to follow us @INN_Australia for real-time updates!
This is an updated version of an article first published by the Investing News Network in 2022.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Firebird Metals and Element 25 are clients of the Investing News Network. This article is not paid-for content.
Top 5 Manganese Reserves by Country (Updated 2024)
Manganese, a key ingredient for the steel market, is also seeing growth in demand from the electric vehicle battery sector, particularly when it comes to high-purity manganese chemical products.
Manganese investors are often interested to hear which countries produce the most of the metal. After all, if a nation is producing a lot of manganese, many companies are likely operating there — and investment opportunities may thus be available. However, what investors sometimes fail to consider is manganese reserves, or how much economically mineable manganese a country holds, and what companies are working to bring those reserves into production.
CPM Group told the Investing News Network that there are about 60 development-stage manganese ferroalloy projects scheduled to start production by 2027. If all of these new projects in the pipeline are brought online, the impact on the global market would be about a 6 percent increase in manganese ferroalloy production capacity.
With that in mind, here’s an overview of the five countries with the highest manganese reserves. Data for this list comes from the US Geological Survey's latest report on manganese.
1. South Africa
Manganese reserves: 600 million MT
At 600 million metric tons (MT), South Africa holds the highest manganese reserves in the world by a long shot. The nation is also the world's top producer of the metal, with 2023 output of 7.2 million MT.
South32 (ASX:S32,LSE:S32,OTC Pink:SHTLF) is a major presence in the South African manganese space. Its South Africa Manganese operation is located in the manganese-rich Kalahari Basin, and consists of the open-pit Mamatwan mine, the underground Wessels mine and the Metalloys manganese alloy smelter.
Another ASX-listed manganese miner, Jupiter Mines (ASX:JMS,OTC Pink:JMXXF) is also operating in the area at its Tshipi Borwa mine, considered the largest manganese mine in country and one of the largest in the world.
2. China
Manganese reserves: 280 million MT
The country with the next highest manganese reserves is China at 280 million MT. The Asian nation is also the fourth largest producer of manganese ore, the largest producer of refined manganese and the largest consumer of the metal. Unsurprisingly, China's economy and government regulations have an outsized impact on the global manganese market.
In late 2023, new manganese deposits were discovered in the southeast province of Jiangxi during government-led exploration work. This is in addition to the manganese deposits discovered in the southwest province of Guizhou in 2017. These discoveries have yet to be accounted for in estimates from the US Geological Survey.
3. Brazil
Manganese reserves: 270 million MT
Brazil hosts a total of 270 million MT of manganese reserves as of 2023. The country produced 620,000 MT of the metal in 2023, making it the seventh-largest manganese-producing country.
Buritirama Mining, a subsidiary of Grupo Buritipar, is Brazil's leading producer of the metal. Last year, the company invested US$200 million to expand operations at its Para state mine. Major miner Vale (NYSE:VALE), previously the largest manganese miner in the country, offloaded its Brazilian manganese and iron ore assets to J&F Investimentos in 2022. Going forward, J&F has said it plans to invest more than US$1 billion in increasing the iron ore and manganese output from the mines it purchased from Vale.
4. Ukraine
Manganese reserves: 140 million MT
Ukraine produces much less manganese than South Africa, but its reserves of the metal are quite high — it put out 320,000 MT of manganese in 2023 and its reserves stand at 140 million MT. About one-third of its total reserves are hosted in the country's mineral-rich Nikopol Basin, home to Europe's largest manganese ore deposit.
Russia's war against Ukraine has curbed operations in many sectors of its economy, including its manganese production. In late 2023, increased shelling led Marganets Mining to suspend operations at the Nikopol ferroalloy plant. In addition, high electricity costs and low prices for manganese prompted another manganese producer, Pokrovsky GOK, to suspend operations at its manganese mine and plant.
5. Australia
Manganese reserves: 110 million MT
At 110 million MT, Australia holds the fifth highest manganese reserves in the world. The nation is also the world's third largest producer of the metal. In 2023, Australia's manganese output came in at 3.3 million MT.
Australia’s largest manganese ore producer is Groote Eylandt, a 60/40 joint venture between South32 and Anglo American (LSE:AAL,OTCQX:AAUKF) in the nation's Northern Territory. In mid-March, operations at Groote Eylandt were negatively impacted by tropical cyclone Meghan — the second strongest cyclone to hit the area in the past two decades.
The storm damaged critical infrastructure at the site, including a haulage bridge between the mine and processing facilities, as well as the wharf from which manganese ore is shipped. South32 is currently conducting engineering studies to determine a schedule and capital costs to make the repairs needed to restore operations at Groote Eylandt.
More manganese reserves by country
With total global manganese reserves sitting at 1.9 billion MT, many other countries also hold significant reserves of the battery metal. Here’s a quick look at where other nations stand:
6. Gabon — 61 million MT
7. India — 34 million MT
8. Ghana — 13 million MT
9. Kazakhstan — 5 million MT
10. Mexico — 5 million MT
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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