Advanced manganese developer Firebird Metals Ltd (ASX:FRB, OTC:FRBMF) continues to efficiently progress key activities in China as it works towards becoming a near-term producer of battery-grade manganese sulphate.
Today the company has provided an update on the progress of its China-based manganese sulphate and lithium manganese iron phosphate (LMFP) battery strategy, having assembled its in-country team and commenced key workstreams.
PFS commenced
The company appointed experienced pre-feasibility study (PFS) and engineering design experts and the PFS has now commenced, with “excellent progress” being made. Preliminary engineering design and the PFS are expected to be completed late in the first quarter of 2024.
This follows excellent results from the recently completed China-based battery-grade manganese sulphate scoping study.
The scoping study validated Firebird’s focus to produce battery-grade manganese sulphate in China, with impressive results highlighted by a strong projected project value (NPV) of around US$331 million, low-cost total capital expenditure of about US$82.3 million, an internal rate of return of 47% and a payback period of less than two years.
Technical and operational team
Firebird has made its first major team appointment for its Chinese subsidiary, Hunan Firebird Battery Technology Co Ltd, with Zhou Qiyun joining as chief operating officer (COO).
Based in China, Zhou is a highly regarded and leading manganese sulphate expert, who has spent the majority of his career across the development, optimisation and commercialisation of technologies for manganese sulphate processing (including patents), with a key focus on energy-saving optimisation processes through evaporation and crystallisation stages.
Zhou was previously a part-owner of a battery-grade manganese sulphate plant and has consulted to a large number of existing manganese sulphate plants in China, principally advising on technical processing issues.
He also consults to the Central South University as an expert in manganese sulphate processing. As part of Zhou joining Hunan Firebird Battery Technology Co Ltd, he has introduced several other technical experts — who also bring manganese sulphate process technology experience — to consult to and work for Hunan Firebird.
Having established a leading, high-purity manganese team, puts Firebird in a strong position to execute on a busy 12-month work program in China and it ensures it has the level of experience needed to grow into a high-purity manganese producer.
The key near-term objectives for Zhou and his team are:
- managing the setup of Firebird’s R&D centre,
- assisting in the PFS process,
- providing the technical process flow sheet for manganese sulphate and magnesium oxide and engineering design,
- ongoing development of new products for manganese-rich precursor cathode active material (PCAM), with a key focus on lithium manganese iron phosphate (LMFP) commercialisation,
- construction of the plant, sourcing equipment and operational production management once the plant is operational.
R&D lab progress
Firebird is making strong progress on the development of the R&D lab, having completed the design layout, while all specialised equipment is being ordered.
The company expects the lab to be operational in January, initially producing samples for manganese sulphate and magnesium oxide for potential customers and for PFS work. Plans to complete testing on several other potential manganese-rich PCAM materials is underway and expected to be produced soon after. Firebird confirms that the R&D centre costs are on time and budget.
The company has also carried out extensive due diligence on possible factory locations, visiting 10 industrial park sites in different provinces. It plans to announce its preferred location during the PFS study.
Busy 12-month work program ahead
Firebird managing director Peter Allen said: “I would like to welcome Mr Zhou to the Firebird team and along with executive director and CFO Wei Li, look forward to working closely with Mr Zhou as we continue to progress our China LMFP battery strategy.
"To attract someone of the calibre and experience of Mr Zhou is an excellent result for Firebird and shows that we have established the right strategy and platform for success in China to build a tier-one, high-purity manganese sulphate operation.
“The significant value that Mr Zhou will bring to the company, his knowledge of manganese sulphate production and his patented and proven technology processes, truly elevates Firebird China-based manganese sulphate plant aspirations to a world-class level.
“We continue to make excellent strides with our LMFP battery strategy and look forward to executing a busy 12-month work program, which once completed, will place the company in a strong position to grow into a near-term producer of battery-grade high-purity manganese sulphate.”