Marking a key milestone for its lithium manganese iron phosphate (LMFP) battery strategy, Firebird Metals Ltd (ASX:FRB, OTC:FRBMF) has completed the fit-out of the research and development centre with the manganese sulphate pilot plant in China now operational.
Located in the Jinshi High Tech Industries Development Zone in Hunan province — a central location for Chinese battery production and manganese sulphate demand in China — the R&D centre came in ahead of schedule and under budget.
The pilot plant will initially produce samples of battery-grade manganese sulphate (MnSO4) and manganese tetraoxide (Mn3O4) for potential customers and offtake parties.
As part of Firebird’s R&D centre, the pilot plant will also be used to complete testing on several other potential manganese-rich precursor cathode active materials (pCAM).
It will also be used to demonstrate the production process to financiers, as Firebird continues to progress its China-based LMFP battery strategy and develop into a near-term producer of battery-grade manganese.
Making “excellent strides”
Firebird managing director Peter Allen said, “We continue to make excellent strides in China on our LMFP battery strategy, which will position us to become a major, low-cost, manganese sulphate producer, providing battery-grade manganese into a market that is forecast to experience exponential growth over the coming decade.
“Completion of the R&D Centre, under budget and ahead of schedule, is an excellent achievement and a strong testament to the team on the ground in China. We have commenced Pilot Plant work and will focus on demonstrating our ability to produce high-purity manganese sulphate and manganese tetraoxide for potential customers and offtake parties.
“This work will also play a key role in securing finance to construct our plant in Hunan and continue our focused efforts towards becoming a producer in the next 18-24 months.
“We have attracted and assembled a leading and experienced manganese team in China and I am very confident and excited about what we are working towards and the future for Firebird and our shareholders.
Allen also highlighted that the company was well-funded and in a very strong position to execute key work programs in China, along with the continued development of its Oakover Project in Western Australia, following its heavily oversubscribed placement last October.
“We are fully focused on maintaining this strong momentum and look forward to delivering on a very busy 2024,” said Allen.
Sulphate Reactor.
PFS underway, builds on scoping study
Completion of the fit-out of the R&D centre follows delivery of the battery-grade manganese sulphate scoping study, which focused on the development of a manganese sulphate plant.
As per the study, the plant has total capacity of 72,000 tonnes of battery-grade manganese sulphate equivalent, producing 50,000 tonnes per annum of battery-grade manganese sulphate and 10,000 tonnes per annum of manganese tera oxide capacity from manganese concentrate.
The scoping study assumed that manganese concentrate can be sourced from Oakover (or third parties) at prevailing forecast market prices.
Firebird intends to process concentrate through ore preparation, leaching, reagent addition, multi-stage precipitation, impurity removal and 2-stage crystallisation to produce battery-grade manganese sulphate and manganese tetraoxide.
Key results from the scoping study included:
- Low-cost total capex - US$82.3 million before tax;
- Highly competitive low opex - US$659/mt;
- Strong projected NPV - US$331 million (at a discount rate of 8%, before tax);
- Internal rate of return - 47% (before tax); and
- Payback period of less than two years.
The scoping study results further support Firebird to deliver on its vision to become a global leader in the manganese industry — dedicated to advancing the lithium-ion battery sector by combining mining and downstream processing.
The company reports that it is well advanced on its battery-grade manganese sulphate pre-feasibility study, which is on track for completion in the current quarter.
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