The Conversation (0)
July 05, 2023
Australian manganese explorer and developer, Black Canyon Limited (Black Canyon or the Company) (ASX: BCA) is pleased to announce that reconnaissance mapping and rock chip sampling completed over the Wandanya Project has identified high-grade manganese mineralisation.
- Reconnaissance sampling over the Wandanya (E46/1407) tenement (BCA 100%) has delivered high-grade surface rock chip samples up to 54% manganese (Mn).
- Two samples taken 100m apart (across strike) returned 52.9% and 54.3% Mn from an outcrop that is approximately 300m long and 150m wide at the W2 prospect.
- Other samples targeting manganese across the tenement ranged between 12.2% and 33.5% Mn.
- No previous surface sampling or historic drilling has been completed over the outcropping mineralisation.
- Future exploration plans include additional mapping, sampling and gradient array IP (GAIP) to generate drill targets.
The sampling program was part of the initial assessment of the tenement to determine geological setting and mineralisation potential. The Wandanya tenement is located on the eastern boundary of the Oakover Basin and approximately 80km south of the Woodie Woodie manganese mine. Further work is planned to follow-up the results and continue mapping along strike to north.
Black Canyon’s Executive Director Brendan Cummins said:
“The high-grade manganese rock chip results encountered over the Wandanya Project contain approximately 20% more manganese than previous surface mineralisation we have sampled related to manganese enriched shales which commonly range between 25 and 35% Mn. The 50% plus Mn grades at Wandanya are more akin to those related to hydrothermal or contact style manganese enrichment which presents a new targeting opportunity for the Company.
“These early results are very encouraging given the grade of samples and similarities in geological setting to the Woodie Woodie manganese mine. The outcrop is approximately 300m long and 150m wide and to the north there appears to be further mineralisation that will be followed up with mapping and additional sampling.”
Figure 1. Sample site W003 – 52.9% Mn showing manganese enrichment on tenement E46/1407 at prospect W2.
Wandanya Manganese Mineralisation
The high-grade manganese mineralisation encountered at the W2 prospect outcrops over 300m strike and is up to 150m wide forming a gently sloping rounded hill. The mineralisation has been mapped as a mixed manganese dominant ferruginised breccia, with some relict bedding and hosted by dolomite. The area is structurally complex with multiple NE and NW-trending cross cutting faults mapped from aerial imagery. Further work is planned to evaluate the significance of the discovery which will include the evaluation of sub-cropping manganese mineralisation interpreted to the north and along strike that extends discontinuously for a further 1 to 2km.
Click here for the full ASX Release
This article includes content from Black Canyon, 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.
BCA:AU
04 April
Top 5 Canadian Mining Stocks This Week: Euro Manganese Surges 82 Percent
Welcome to the Investing News Network's weekly look at the best-performing Canadian mining stocks on the TSX, TSXV and CSE, starting with a round-up of Canadian and US news impacting the resource sector.
US President Donald Trump announced a sweeping round of tariffs on Wednesday (April 2), including 10 percent on most countries along with more specific import fees directed at specific countries in an attempt to balance trade deficits.
Canada and Mexico were spared under the USMCA deal signed by Trump in 2019, with the exception of non-USMCA-compliant vehicles, which are subject to a 25 percent tariff. This sparked a 25 percent retaliatory tariff from Canada.
The uncertainty over the application of tariffs caused some automakers, like Ford (NYSE:F) and Stellantis (NYSE:STLA), to announce family pricing to encourage consumers to make purchases before car prices rise. Stellantis also halted production at plants in Canada and Mexico and temporarily laid off 900 workers.
Statistics Canada released its March jobs report on Friday (April 4). Its data showed that Canada’s labor market lost 33,000 jobs during the month. The most significant decline occurred in wholesale and retail trade, which shed 29,000 jobs, followed by information, culture and recreation, which dropped by 20,000.
Meanwhile, personal and repair services added 12,000 new positions, while utilities gained 4,200 workers. Overall, the unemployment rate climbed 0.1 percent to 6.7 percent.
South of the border, the US Bureau of Labor Statistics announced a significant increase in the non-farm payroll in March.
The report indicated that the US added 228,000 jobs to the economy, significantly higher than the 117,000 jobs added in February and the 140,000 expected by economists. The largest gains in employment occurred in the healthcare sector, which added 54,000 new jobs, while both the social assistance and retail sectors contributed 24,000 jobs each.
The report also indicated a further decline of 4,000 jobs in the federal government, following a loss of 11,000 in February. Mass layoffs of federal employees by the Elon Musk's Department of Government Efficiency are not yet fully reflected in the jobs data. Many of the over 280,000 employees whose jobs are being cut are currently on administrative leave or accepted severance deals, Bloomberg reported, meaning the bureau still counts them as employed.
The unemployment rate and participation rate held steady at 4.2 and 62.5 percent respectively.
Markets and commodities react
Global equity markets were in steep decline following the Trump administration’s tariff announcements on Wednesday.
In Canada, The S&P/TSX Composite Index (INDEXTSI:OSPTX) fell 5.67 percent during the week to close at 23,277.79 on Friday, the S&P/TSX Venture Composite Index (INDEXTSI:JX) decreased 8.31 percent to 575.91 and the CSE Composite Index (CSE:CSECOMP) dropped 9.23 percent to 108.95.
US equity markets did not fare any better, with the S&P 500 (INDEXSP:INX) losing 8.21 percent to close at 5,074.09, the Nasdaq 100 (INDEXNASDAQ:NDX) dropping 7.36 percent to 17,570.21 and the Dow Jones Industrial Average (INDEXDJX:.DJI) shedding 7.41 percent to 38,314.85.
Precious metals also closed the week in the red. Although the gold price briefly hitting a new high of US$3,167.71 per ounce on Wednesday, it plunged on Friday to close the week down 1.56 percent at US$3,038.04. The silver price declined sharply, losing 12.92 percent during the period to US$29.69.
In base metals, the COMEX copper price plunged 14.17 percent over the week to US$4.42 per pound. Meanwhile, the S&P GSCI (INDEXSP:SPGSCI) lost 6.75 percent to close at 522.69.
Top Canadian mining stocks this week
So how did mining stocks perform against this backdrop?
Here's a look at this week’s five best-performing Canadian mining stocks below.
Stock data for this article was retrieved at 4:00 p.m. EDT on Friday using TradingView's stock screener. Only companies trading on the TSX, TSXV and CSE with market capitalizations greater than C$10 million are included. Companies within the non-energy minerals and energy minerals sectors were considered.
1. Euro Manganese (TSXV:EMN)
Weekly gain: 81.82 percent
Market cap: C$40.27 million
Share price: C$0.50
Euro Manganese is a manganese development company working to advance its Chvaletice waste recycling project. The operation is focused on extracting manganese from tailings that are part of a decommissioned mine site near Prague, Czechia. As part of the project's scope, the company says it will carry out remediation and reclamation work to bring the site into compliance with environmental regulations.
A 2022 feasibility study for the Chvaletice project indicates that it will produce 48,000 metric tons of manganese per year and is expected to have a project life of 25 years. In the study, the company reports a post-tax net present value of US$1.3 billion with an internal rate of return of 22 percent and a payback period of 4 years.
The latest project news was announced on March 25, when Euro revealed that Chvaletice had been designated a strategic project under the European Union’s Critical Raw Materials Act. According to the terms of the act, the project will gain access to both private and public funding opportunities, as well as a more streamlined permitting process.
Shares in Euro experienced significant gains this week after the company announced on March 30 that it would proceed with a share consolidation at a ratio of five to one. The consolidation occurred on Monday (March 31), reducing the number of common shares to 80.53 million from 402.67 million, and post-consolidation shares began trading on April 2.
The company also announced on April 1 that it would be upsizing a financing round up to C$11.2 million and would include a C$3 million private placement with former Sprott (TSX:SII,NYSE:SII) Chairman Eric Sprott. Proceeds generated from the financing will be used to support development at Chvaletice.
2. DLP Resources (TSXV:DLP)
Weekly gain: 60 percent
Market cap: C$61.08 million
Share price: C$0.44
DLP Resources is an explorer focused on advancing its flagship Aurora copper-molybdenum project in Peru.
The 8,500 hectare site is located in the Central Andes. Exploration work has been performed at the site since the early 2000s, with DLP conducting drill programs in 2023 and 2024.
Shares in DLP have been rising since the release of a technical report for Aurora on February 27, which included a maiden resource estimate with significant copper and molybdenum spread over two zones.
The inferred resource totals 1.05 billion metric tons of ore containing 4.65 billion pounds of copper, 1.1 billion pounds of molybdenum and 80 million ounces of silver. The resource has average grades of 0.2 percent copper, 0.05 percent molybdenum and 2.4 grams per metric ton silver.
The company said it is pleased with the size and results of the report and will continue drilling the site to upgrade the resource ahead of a preliminary economic assessment.
DLP shares also got a boost this week after it released its management’s discussion and analysis for the nine months ended on January 31. It discusses the firm's activity for the period, highlighting its recent resource estimate, as well as the completion of a non-brokered private placement in January for proceeds of C$1.36 million.
3. Noram Lithium (TSXV:NRM)
Weekly gain: 35 percent
Market cap: C$12.08 million
Share price: C$0.135
Noram Lithium is an exploration and development company focused on advancing its Zeus lithium project in Nevada, US. The property, located near Clayton Valley, comprises 146 placer and 136 lode claims covering 1,133 hectares in a region with existing lithium brine operations since 1967. Noram has been exploring the site since 2016.
Its most recent update came on June 11, when the company released an updated resource estimate, reporting an indicated resource of 564 million metric tons (MT) at a concentration of 956 parts per million (ppm), resulting in 2.9 million MT of contained lithium carbonate equivalent. Zeus' inferred resource stands at 1.3 million MT of contained lithium carbonate equivalent from 287 million MT grading 861 ppm lithium.
Shares in Noram rose this week, but the company did not publish any news.
4. Maple Gold Mines (TSXV:MGM)
Weekly gain: 31.82 percent
Market cap: C$34.11 million
Share price: C$0.07
Maple Gold Mines is a gold exploration company focused on the advancement of its Douay and Joutel projects located in the Abitibi Greenstone Belt in Québec, Canada.
The Douay project covers an area of 357 square kilometers. In a 2022 technical report, the company said the site hosts an indicated resource of 511,000 ounces of gold from 10 million metric tons with an average grade of 1.59 grams per metric ton (g/t) gold, with an additional inferred resource of 2.53 million ounces from 76.7 million metric tons at 1.02 g/t.
Joutel covers an area of 39 square kilometers and is located directly south of Douay. The site hosts Agnico Eagle Mines' (TSX:AEM,NYSE:AEM) past-producing Eagle-Telbel gold mine, which operated from 1974 to 1993. To date, the company has used 250,000 meters of historic drill results to create 3D models to aid in current exploration efforts.
The most recent news from the project came on Thursday when Maple announced recent exploration at Douay’s Nika zone produced a broad mineralized interval of 2.05 g/t gold over 108.6 meters, which included an intersection of 4.93 g/t over 17 meters, from a vertical depth of 490 meters.
The company said the results build on previously identified mineralization from shallower depths and defines a new high-grade, bulk-tonnage target that remains open in multiple directions.
5. Stillwater Critical Minerals (TSXV:PGE)
Weekly gain: 25 percent
Market cap: C$38.43 million
Share price: C$0.15
Stillwater Critical Minerals is an exploration company focused on advancing its flagship Stillwater West project in Montana, US. The brownfield project hosts several multi-kilometer exploration targets with known mineralization deposits of nickel, copper, cobalt, platinum group metals and gold.
A resource estimate included in a January 2023 technical report demonstrated an inferred estimate of 1.05 million pounds of nickel, 499 million pounds of copper, 91 million pounds of cobalt, and a combined 3.811 million ounces of platinum group metals and gold from 254.8 million metric tons of ore with a nickel equivalent cut-off grade of 0.2 percent.
The most recent news from the project came on March 26 when Stillwater reported it had identified multiple large-scale targets from its 2024 geophysical survey. The company said the survey improved the resolution of known targets while identifying unknown targets occurring near surface to a depth of 1.5 kilometers.
Shares have also been bolstered by the recent executive order from President Trump that will help to speed up project permitting for critical minerals projects.
In a March 24 announcement, Stillwater President and CEO Michael Rowley commented, “The order also makes a point of listing copper and gold. This is very relevant to Stillwater because we have a very large polymetallic resource that positions us with a substantial copper inventory and the largest nickel project in an active US mining district.”
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
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03 April
Element25 Completes Scoping Study for Tokyo Bay HPMSM Facility
Element25 (ASX:E25,OTCQX:ELMTF) said on Wednesday (April 2) that it has finished a scoping study for its planned Tokyo Bay high-purity manganese sulphate monohydrate (HPMSM) facility in Japan.
The study was completed as part of Element25's memorandum of understanding (MOU) with Nissan Chemical (TSE:4021) and its subsidiary, NC Tokyo Bay. It confirms the facility's feasibility, with no fatal flaws detected.
Factors included in the study were permitting, logistics, reagent supply and labour, plus capital and operating costs. The facility is set to be located at an existing site owned by NC Tokyo Bay in Chiba prefecture, Japan.
The companies now plan to make a more detailed investigation of the project.
They are targeting a final investment decision by June 2026, and their MOU outlines a variety of steps that will help them determine their path forward, including the finalisation of offtake deals and project financing.
Independently, Element25 has been making progress at its first HPMSM facility in Louisiana, US. The facility is planned to encompass 230,00 square feet with annual production of 71,650 tonnes of HPMSM.
In September 2024, the Louisiana facility was selected to receive a US$166 million grant from the US Department of Energy’s Battery Materials Processing Grant Program. This money was on top of US$115 million that Element25 has secured from offtake partners General Motors (NYSE:GM) and Stellantis (NYSE:STLA). According to the company, the facility will be one of the first HPMSM-producing commercial facilities in the US, reducing the country’s reliance on China.
Earlier this year, Element25 also secured approval to expand its Western Australian Butcherbird manganese mine.
The company said 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.
Once everything is in place, manganese ore from Butcherbird will be shipped to the HPMSM facility in Louisiana.
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.
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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.
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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.
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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.
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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.”
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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.
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