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Firebird Metals Limited (ASX: FRB, “Firebird” or “the Company”) is pleased to announce its subsidiary Hunan Firebird Battery Technologies has received the critical safety permit for Stage 1 of the Battery Grade Manganese Sulphate Plant in China, which will utilise third party manganese ore to produce high-purity manganese sulphate (MnSO4).
HIGHLIGHTS
- Critical safety permit received for the construction and operation of the Company’s battery grade manganese sulphate plant, which will be located in Jinshi, Hunan Province, China
- The safety permit is one of three critical permits required to commence construction, with the other two being environmental and energy
- Environmental Impact Permit Report - completed and has gone through initial Expert Panel review – Full approval expected within the June quarter
- Energy Consumption Report - completed and has been lodged with local Jinshi Government - Full approval expected within the June quarter
- Efficient receipt of the Safety Permit and advanced status of remaining key permits highlights the strong in-country support Firebird has to establish the Company as a key high-purity manganese sulphate producer
- Once all permits are obtained and following a Final Investment Decision (FID), which is anticipated to be made in H2 2024, Firebird will be ready to immediately commence construction of the sulphate plant, with completion projected to take ~12-15 months and operations expected to commence in late 2025
- The Company’s Battery Grade High-Purity Manganese Feasibility Study released in early May (ASX announcement dated 7/5/24) with projected CAPEX of US$83.5 million and OPEX of ~US$609/metric tonne (mt) for the production of battery grade manganese sulphate
Cautionary Statement
The Feasibility Study referred to in this announcement is a Technical Feasibility of the establishment of the Battery Grade Manganese Sulphate Plant Stage 1 Processing Plant in China (the Plant). Please refer to ASX announcement dated 7/5/24 for full Feasibility Study details.
The Feasibility Study is based on the material assumptions contained in the Feasibility Study document which accompanied the announcement. This announcement and the Feasibility Study include assumptions about the availability of funding. While the Company considers all the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated will be achieved.
Notwithstanding the Finance Update as set out in the ASX announcement dated 14/5/24, investors should note that there is no certainty that the Company will be able to raise the amount of funding to develop the Plant when needed. It is also possible that such funding may only be available on terms that may be dilutive to or otherwise affect the value of Company’s existing shares.
It is also possible that the Company could pursue other ‘value realisation’ strategies such as a sale, partial sale or joint venture of the Plant. If it does, this could materially reduce the Company’s proportionate ownership of the Plant. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Feasibility Study.
In China there are total of 8 major permits required for construction and operation, which are outlined below, along with status updates for each permit:
These permit applications can proceed concurrently with Feasibility Studies, engineering assessments, and financing endeavours, with the critical permits being environmental, safety & energy permits.
Once all key permits are obtained, with the expectation that the remaining two permits will be received before the end of the financial year and following the anticipated Final Investment Decision in the second half of 2024, Firebird will be ready to immediately begin construction on its battery-grade manganese sulphate plant.
Construction is projected to take only 12-15 months, with operations expected to commence in late 2025.
Firebird Managing Director Mr Peter Allen commented: “As we continue to efficiently advance the necessary permits for our battery grade manganese sulphate plant, I am pleased to announce that we have received the first of three critical permits, being the safety permit, and expect the remaining two permits to be received by the end of June.
“We are moving at a rapid pace on-the-ground in China and that is due to the hard work of our leading manganese team and the strong level of in-country support we have and continue to receive. Importantly, we continue to tick all the boxes in the delivery of our high-purity manganese sulphate strategy and have defined a low-cost, near-term pathway to production. We expect to make a Final Investment Decision in the second half of 2024, immediately commence construction activities and work extremely hard towards commencing operations in late 2025.”
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.
FRB:AU
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.
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