Firebird Metals Ltd (ASX:FRB, OTC:FRBMF) has completed a pivotal scoping study for the production of battery-grade manganese sulphate in China, leveraging manganese concentrate from the Oakover Project in Western Australia.
The scoping study, conducted in-house, is part of Firebird's broader strategy to establish itself as a key contributor to the lithium-ion (Li-ion) battery sector.
This study underscored the feasibility of a China-based manganese sulphate plant, integral to Firebird's Lithium Iron Manganese Phosphate (LMFP) Battery Strategy.
Another key milestone
“We are extremely pleased with the results from our China-based Battery-Grade Manganese Sulphate Scoping Study, which reinforces the next phase of our growth strategy and demonstrates the true potential of Oakover," Firebird Metals managing director Peter Allen said.
“The past few months have been an exciting and transformative period for the company as we embark on becoming a near-term producer of battery-grade manganese sulphate.
"The delivery of this study and the results generated marks the completion of another key milestone as we work through a busy 12 months ahead.
“Importantly, we continue to build on the strong platform we have created at Oakover and our vision to become a global leader in the manganese industry, combining mining and downstream processing with a dedication to the advancement of the EV battery sector."
Scoping study highlights
Key highlights from the study include:
- Operational expenditure (opex) estimated at US$659 per metric tonne for producing battery-grade manganese sulphate, a testament to the cost-effective nature of the Chinese circular industry.
- Capital expenditure (capex) projected around US$82.3 million, inclusive of land and a 30% contingency.
- The Net Present Value (NPV) stands at about US$331 million at an 8% discount rate, before tax.
- The study foresees a rapid payback period of less than two years.
- An average Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of around US$48.3 million, before tax.
- An Internal Rate of Return (IRR) of 47%, pre-tax.
- A plant capacity of 72,000 metric tonnes per annum of battery-grade manganese sulphate (MnSO4), producing 50,000 tonnes of the same and 10,000 tonnes of manganese tetraoxide (Mn3O4).
- Key reagents like sulphuric acid and steam, as well as potential customers, are in close proximity to the proposed plant site, which also offers room for future expansion.
Following these encouraging results, Firebird is swiftly progressing towards the pre-feasibility stage (PFS) for this project. Concurrently, the company is advancing the development of the Oakover Project.
Well-timed development
"We are developing and pushing ahead with Oakover at the right time, as the use of manganese in EV batteries continues to grow rapidly," Allen continued.
“LMFP batteries are forecast for the largest growth of all the manganese-based batteries, due to the fact it meets the key criteria of car manufacturers - cheap, safe and delivers good range.
"2023 is seen by many industry participants as the beginning of the new era of Li-ion batteries by commercialising LMFP and we are well-positioned to benefit greatly from this demand."
Demand for LMFP batteries is expected to grow substantially this year, driven by their cost efficiency, safety and extended range capabilities.
The completion of this scoping study positions Firebird to advance its vision of becoming a global leader in the manganese industry, synergising mining and downstream processing in service of the evolving EV battery sector.