Element 25 Ltd (ASX:E25) is focused on the development of its Butcherbird Manganese Project in Western Australia to produce high-quality manganese concentrate and High Purity Manganese (HPM) products for traditional and new energy markets.
In the near term, the company’s Stage 1 $583 million NPV commissioning and ramp-up is underway, targeting a low capital cost and rapid start-up to establish itself as a producer – while minimising dilution.
The company has already commenced haulage to port of a planned total 27,000 tonnes of material, with the first ship containing Butcherbird manganese product scheduled to depart in last week of June 2021.
In the next 1.5 years, the $1.14 billion Stage 2 expansion of the project will ramp up, targeting a PFS, improved resource utilisation, a reduction in unit operating costs and increased operating cash.
Stage 3 development
E25’s 5-year plan then evolves into Stage 3, with a high purity manganese PFS study anticipated for completion in 2021.
Stage 3 will target the conversion of the concentrate material into high purity manganese sulphate monohydrate (HPMSM) for electric vehicle (EV) batteries to power the global transition away from fossil fuel-powered mobility.
This would put the company in the prize position as a globally dominant producer of high purity, sustainable manganese products.
A full feasibility study is expected to be release in H1 2022, with product qualification to follow in H2 2022 and first production scheduled for 2024/2025.
Stage one of project delivery is now complete, with the ramp up underway.
Zero Carbon Manganese™
The company will then transition to Stage 4 of the project, which sets its sights on decarbonising and producing Zero Carbon Manganese™ - the best in class, zero carbon, ethically produced, scalable high purity manganese for global markets.
The company is investigating a range of potential pathways, including:
- Extensive wind and solar resource data set collected at site (>1 year);
- Energy modelling confirmed cost advantage with renewable solutions;
- Green hydrogen-powered mine fleet and bulk haulage;
- Battery-powered bulk haulage trucks to be made available in Australia shortly;
- Green hydrogen reduction reagent potential (similar to ‘Green Steel’);
- Supply chain transparency and ESG accounting; and
- Collaboration with other ESG focused companies to pursue new solutions.
The company’s staged development plan.
Targeting new and old manganese markets
Manganese is the fourth most used metal on earth in terms of tonnage and is used in steel, specialty alloys and aluminium products.
Traditionally the market has been dominated by the steel and alkaline battery industries, as there is no substitute for manganese in steel – and E25’s manganese concentrate is well placed to feed this market.
However, the electrification of the global vehicle fleet requires vast amounts of cathode materials and batteries are trending toward higher manganese content for safer, more cost-effective solutions.
Manganese is the cheapest, most abundant of the NMC cathode materials (nickel, manganese, cobalt) and is perfectly placed to provide the material needed to satisfy the world's hunger to electrify.
Notably, companies like Volkswagen (ETR:VOWG_p) are moving to a high manganese cathode for most of its' vehicles.
And the company will be well placed to cater for demand – with around 58% of new vehicles forecast to be EV or hybrid by 2040.
As part of its long-term growth strategy, E25 is targeting this market, with discussions already underway in relation to potential offtake partners in this segment.
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